Development Margin Calculator
Measure development profit as a percentage of gross or net development value.
Calculated directly from the assumptions shown.
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Get the model · €79 incl. VATHow the Development Margin calculation works
Development margin = development profit ÷ development value.
Example calculation
€5m profit on €25m of net development value equals a 20% margin.
How professionals use the result
Use margin to compare schemes with different scale. Confirm whether your benchmark uses gross or net development value.
Common mistakes
- Dividing by cost instead of value
- Using gross value with net profit inconsistently
- Ignoring timing
- Comparing margins with different contingency policies
Development Margin Calculator FAQs
What does the Development Margin calculator measure?
Measure development profit as a percentage of gross or net development value.
What formula does the Development Margin calculator use?
Development margin = development profit ÷ development value.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use margin to compare schemes with different scale. Confirm whether your benchmark uses gross or net development value.
Which mistakes are most common?
Dividing by cost instead of value; Using gross value with net profit inconsistently; Ignoring timing; Comparing margins with different contingency policies.