Maximum Land Price Calculator
Find the land budget that meets a target profit on total development cost.
Calculated directly from the assumptions shown.
Continue in the full model.
Move from this screening result to the complete Land Development Model.
Get the model · €79 incl. VATHow the Maximum Land Price calculation works
Land price = [GDV ÷ (1 + target profit on cost) − non-land costs] ÷ (1 + land acquisition costs).
Example calculation
With €20m GDV, €12m non-land costs, 20% profit on total cost and 8% land acquisition costs, the maximum land price is €4,320,988, plus €345,679 acquisition costs (rounded).
How professionals use the result
Use this for a first land bid screen. A full appraisal should phase cash flow and calculate interest on actual funding needs.
Common mistakes
- Confusing profit on cost with margin on value
- Omitting interest
- Ignoring purchase costs
- Using gross instead of net sales proceeds
Maximum Land Price Calculator FAQs
What does the Maximum Land Price calculator measure?
Find the land budget that meets a target profit on total development cost.
What formula does the Maximum Land Price calculator use?
Land price = [GDV ÷ (1 + target profit on cost) − non-land costs] ÷ (1 + land acquisition costs).
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 this for a first land bid screen. A full appraisal should phase cash flow and calculate interest on actual funding needs.
Which mistakes are most common?
Confusing profit on cost with margin on value; Omitting interest; Ignoring purchase costs; Using gross instead of net sales proceeds.