LandeVisionStart Free

LandeVision resource

Land Development ROI Calculator

Estimate preliminary land development ROI from land cost, sitework, construction cost, soft costs, revenue, and financing assumptions.

What this calculator estimates

Model early-stage development economics with deterministic math for unit yield, total cost, gross revenue, net profit, ROI, and sensitivity.

Where to go next

Run the free land feasibility calculator, review the sample report, or compare related calculators.

Formula

ROI equals projected net profit divided by total project cost. LandeVision calculates land, sitework, hard costs, soft costs, fees, contingency, financing, sales costs, revenue, profit, margins, debt, equity, and sensitivity.

Sample assumptions

  • Land cost and parcel acres
  • Unit yield or density
  • Construction cost per square foot
  • Sale price or rental exit value

Feasibility calculator

Build a preliminary land development scenario

Enter the parcel, development type, cost stack, and revenue assumptions. LandeVision will calculate a deterministic first-pass report and save a shareable version when the database is available.

Scenario
Costs
Revenue

Step 5. Results

Preliminary feasibility result

Risk: High
Net usable acres
9.2
Units
14
Buildable sq ft
50,400
Total project cost
$23,172,039
Projected revenue
$16,800,000
Net profit
-$6,372,039
ROI
-27.5%
Equity need
$8,110,214

Cost breakdown

Land cost$4,200,000
Sitework / horizontal cost$2,210,750
Hard construction cost$10,584,000
Soft costs$1,905,120
Professional fees$423,360
Permits / impact fees$252,000
Utility allowance$392,000
Contingency$1,261,378
Sales and marketing$840,000
Financing or holding$1,103,430
Cost per unit$1,655,146
Cost per sq ft$460

Sensitivity

Conservative$15,456,000-$9,569,802-38.2%
Base$16,800,000-$6,372,039-27.5%
Upside$18,144,000-$4,101,157-18.4%

Risk flags

  • Low preliminary ROI: The base case ROI is below a common early-screening threshold. Sensitivity analysis and entitlement risk deserve extra review.
  • Zoning not confirmed: Current zoning, future land use, overlays, buffers, and allowable density must be verified before relying on the scenario.
  • Entitlement path requires review: Rezoning, conditional use, variances, site plan approval, or public hearings can change timing, cost, and approval probability.
  • Equity return cushion may be limited: Projected profit is modest relative to estimated equity need. Stress-test leverage, interest rate, absorption, and exit pricing.
  • County missing: County is important for zoning, entitlement process, utilities, impact fees, and local review paths.
  • Utilities not verified: Water, sewer, stormwater, access, fire flow, and off-site improvements can change feasibility materially.
  • Environmental constraints unknown: Wetlands, floodplain, stream buffers, topography, soils, and protected areas require professional verification.

Next due diligence steps

  1. Confirm zoning, future land use, overlays, and entitlement path with the local planning department.
  2. Ask a civil engineer to review access, utilities, stormwater, grading, floodplain, wetlands, and off-site improvement exposure.
  3. Validate unit yield and site plan fit with an architect or land planner.
  4. Pressure-test sales, rent, exit cap rate, absorption, financing, and construction cost assumptions.
  5. Review title, survey, easements, environmental reports, taxes, impact fees, and legal constraints before purchase or LOI.
Preliminary screening only. Outputs are estimates from user inputs and must be verified by licensed professionals and local authorities.

Run the full analysis

Use the full calculator to save a report, print it as PDF, and request expert-assisted review.

Open full calculator

Next step

Screen your next land deal before you spend thousands.

Run a free preliminary feasibility estimate and request expert review when the deal deserves deeper diligence.

Start Free Land Evaluation