Estimate the real profitability of a new construction home, spec house, renovation, or development project. Enter project costs, selling expenses, loan payoff, and carrying costs to calculate net profit, margin, ROI, break-even price, and cash at closing.
Use realistic project and selling assumptions to understand profit, cash flow, and the cost of waiting.
Enter the expected sale price, land cost, construction cost, soft costs, interest, commissions, closing expenses, and loan payoff. The calculator updates project profit, margin, ROI, break-even price, and cash at closing as the values change.
Include land, labor, materials, subcontractors, permits, design and engineering, lender fees, construction interest, commissions, closing costs, credits, and carrying expenses. Avoid entering the same cost in more than one field.
Project profit subtracts project and selling costs from the sale price. Cash at closing also subtracts the loan payoff. Loan principal is not automatically an additional expense when it financed costs already included in the project total.
There is no universal target. An acceptable margin depends on market conditions, financing, construction risk, schedule, company overhead, and the return required for the project.
Soft costs commonly include architectural and engineering services, surveys, permits, impact fees, reports, insurance, lender fees, legal services, and other professional expenses. Construction interest is entered separately in this calculator.
Interest, taxes, insurance, utilities, and maintenance continue while the property remains unsold. A slightly lower offer today may produce a better result than waiting months for a higher price.
Yes. It can be used for new homes, spec construction, renovations, and small development projects when the entered costs accurately represent the project.
Estimates are for planning purposes only and depend on the information entered. Verify costs, financing, taxes, commissions, and closing assumptions with the appropriate construction, accounting, lending, legal, title, and real estate professionals.