Development finance calculator
Loan to gross development value (LTGDV) is the loan divided by what the finished scheme will be worth. This calculator also works out loan to cost, day-one loan to value and the equity the borrower must put in.
Free for lenders. Amounts in pounds, and nothing leaves your browser.
What the finished scheme is worth
What the borrower pays for the site
The cost of the works
Architect, planning and other fees
A percentage of the build costs
Work forward from an amount, or back from a loan to GDV
The total facility
The part paid out at the start. Leave blank to skip
Enter the GDV, the costs and a loan, or fill in the example, to see the ratios.
This is an estimate. A lender's own policy decides which costs count and how the loan is sized.
The ratios are only as good as the appraisal behind them. Klarefi collects the appraisal, the cost schedule and the borrower's documents, and links every figure to its source. Whether to lend stays with your credit team.
Build your loan applicationHow the ratios are worked out.
Add up the costs
The total costs are the land or purchase price, the build costs, the professional fees and the contingency. The contingency is a percentage of the build costs.
Loan to gross development value
Divide the loan by the gross development value, which is what the finished scheme should be worth. Or pick the share you want and the calculator finds the loan.
Loan to cost
Divide the loan by the total costs.
Day-one loan to value
Divide the advance paid out at the start by the land or purchase price. Enter the advance to see this figure.
Equity required
Take the loan away from the total costs. That is the part the borrower must fund from their own money.
What the ratios leave out.
- Whether the gross development value rests on a valuation or on comparable sales.
- Whether the build costs and the contingency are enough. A monitoring surveyor would check that.
- Whether the borrower has built a scheme like this before.
- How the loan is paid out over the build, and how the interest is paid.
Those take the appraisal, the cost schedule and the borrower's track record read together. That is the work Klarefi does during the application. Your credit team makes the decision.
Questions about development finance ratios.
What is LTGDV?
LTGDV is loan to gross development value. It is the loan divided by the value of the finished scheme. A 60% LTGDV means the loan is 60% of what the scheme should be worth when it is done.
What is the difference between LTGDV and loan to cost?
LTGDV compares the loan with the finished value. Loan to cost compares it with what the scheme costs to build. Lenders often look at both, and each lender sets its own limits.
What is day-one loan to value?
It is the first advance divided by the land or purchase price. It shows how much of the site is funded before any building starts.
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A case file ready for your credit team.
The form says turnover was 2.4 million. The annual accounts say 2.18 million. Klarefi reads the application, the accounts and the bank statements together, asks the applicant about the difference while they are still applying, and adds the answer to the file.
net turnover for the year of €2,184,300 from continuing operations
Free to start. Data stored in the EU by default.
Send applicants one link
They upload the accounts, the bank statements and the rest of your list, from any device.
Klarefi checks each application
It reads every document, compares the numbers, and asks the applicant in a chat for anything missing or unclear.
Your credit team reviews one file
Every number links to the line it came from. Anything still open stays visible for review.