Residual Land Value Calculator
Work backward from completed value to the land price a project can support.
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 Residual Land Value calculation works
Residual land value = [GDV × (1 − target profit on GDV) − non-land costs] ÷ (1 + land acquisition costs).
Example calculation
With €20m GDV, €12m non-land costs, 20% profit on GDV and 8% land acquisition costs, the residual land price is €3,703,704. The land budget including fees is €4,000,000.
How professionals use the result
Use residual land value during site appraisal. Test sales value, build cost, timing, finance and profit simultaneously in a full model.
Common mistakes
- Confusing profit on cost with profit on value
- Excluding finance
- Ignoring land transaction costs
- Treating a negative residual as zero
Residual Land Value Calculator FAQs
What does the Residual Land Value calculator measure?
Work backward from completed value to the land price a project can support.
What formula does the Residual Land Value calculator use?
Residual land value = [GDV × (1 − target profit on GDV) − 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 residual land value during site appraisal. Test sales value, build cost, timing, finance and profit simultaneously in a full model.
Which mistakes are most common?
Confusing profit on cost with profit on value; Excluding finance; Ignoring land transaction costs; Treating a negative residual as zero.