Last updated: 22 Jul 2026
Development finance calculator
Our development finance calculator gives you an instant estimate of your monthly cost and the total cost of borrowing, so you can see what a development loan would cost before you apply. Just enter how much you want to borrow, your loan term and an estimated interest rate below to get your numbers.
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Development finance calculator
Enter the loan terms below to see your estimated repayments.
How much do you want to borrow?
How long do you want to pay your loan back for?
What is the annual interest rate?
Please note that some lenders may charge additional arrangement fees, which are not included in this calculation and should be considered when comparing total borrowing costs.
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What is a development finance calculator?
A development finance calculator is a free tool that estimates your monthly cost and the total cost of a development loan, letting you test different loan amounts, terms and rates before you approach a lender. It's built for the numbers side of the decision, so if you want the full picture on how development finance works, our development finance guide covers eligibility, fees and how to apply in more depth.
Because a development project involves so many moving costs, land, build and professional fees among them, a few minutes with the calculator can save you from underestimating what your funding will really cost before you commit to a site.
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How does the development finance calculator work?
Use our development finance calculator to see what your monthly cost is likely to look like, as well as the total cost of the loan including interest. Just tell us how much you want to borrow, how long you need the loan for, and your expected interest rate. If the numbers look like a good fit for your project, you can start comparing lenders right away.
Keep in mind that with real development finance, funds are usually released in stages as your build progresses, so interest is often only charged on the amount drawn down rather than the full facility from day one. This calculator gives you a clear, cautious estimate to work from, and a funding specialist can talk you through the exact figures for your project.
What determines your development finance rate?
Your experience as a developer
Lenders look closely at your track record of completed projects, since a history of delivering on time and on budget makes them more comfortable pricing your loan lower. First time developers aren't ruled out, but you may see a slightly higher rate unless you're working alongside an experienced project team. Building a track record over a few smaller schemes can help you access better rates on future projects.
The type and location of your development
Lenders price in how much demand there is for your finished units in that specific area, since a scheme in a strong local market is easier to sell or let once complete. Unusual or highly specialist developments can carry a higher rate, reflecting the extra risk if the project takes longer to sell than expected. Sticking to property types with proven local demand generally helps you secure a more competitive rate.
Your financial contribution
The more of the project cost you contribute yourself, whether through cash or existing equity in the land, the lower the loan to cost ratio a lender needs to take on. A lower loan to cost ratio generally means a lower rate, since the lender is carrying less risk relative to the total project value. Putting in a larger contribution upfront can meaningfully reduce your overall borrowing cost.
Loan to cost and loan to gross development value
Every lender sets a maximum loan to cost and loan to gross development value ratio they're willing to lend at, and pricing gets sharper the further you sit below those limits. Borrowing right up to a lender's maximum usually means paying a premium for the extra risk they're taking on. Keeping some headroom against these limits can help you negotiate a more competitive rate.
Your exit strategy
Lenders want a clear, realistic plan for how you'll repay the loan, whether that's selling the finished units or refinancing onto a commercial mortgage. A well evidenced exit strategy, backed by comparable sales or a pre agreed refinance, reduces the lender's risk and can support a better rate. An unclear or overly ambitious exit plan is one of the most common reasons a rate comes in higher than expected.
Your credit history and financial standing
Lenders review your personal and business credit history alongside your overall financial position before setting a rate. A stronger credit profile and clear evidence of financial stability generally lead to more competitive pricing across the panel. Where your credit history isn't perfect, a stronger project or bigger deposit can help offset the impact on your rate.
Example development finance repayment estimates
These figures are illustrative examples to show how loan amount, term and rate affect your costs. Your own results will depend on your project and the lender you choose.
Loan amount | Loan term | Interest rate | Estimated monthly cost | Estimated total cost |
|---|---|---|---|---|
£250,000 | 12 months | 0.75% per month | £1,875 | £22,500 |
£500,000 | 18 months | 0.80% per month | £4,000 | £72,000 |
£1,000,000 | 18 months | 0.85% per month | £8,500 | £153,000 |
£2,000,000 | 24 months | 0.90% per month | £18,000 | £432,000 |
These are illustrative examples only, not a quote. Your actual cost depends on your loan amount, term, rate and how your funds are drawn down. Enter your own figures into the calculator above for a result specific to your project.
How much can you borrow for property development?
Lenders cap your loan using a mix of loan to cost and loan to gross development value limits, rather than one fixed percentage. As a general guide:
Measure | Typical maximum |
|---|---|
Loan to cost, total project spend | Up to 90% |
Loan to build cost | Up to 100% |
Loan to gross development value | Up to 70% |
Loan to day one land value | Up to 65% |
Whichever limit you hit first sets your maximum loan amount, so a strong project with a realistic gross development value and a sensible land price will usually unlock more funding. For a full breakdown of eligibility criteria, fees and how development finance facilities are structured, see our development finance guide.
How to turn your calculation into funding
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Use the calculator
Enter your loan amount, term and an estimated rate to see what your monthly cost and total cost could look like. Try a few combinations until you find figures that fit your project.
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Apply and share your project
Apply and tell us about your development. Your application with Capitalise uses a soft search, so it won't affect your credit score.
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Get matched and funded
We'll match you with the most suitable lenders from our panel of 130+, and a dedicated funding specialist will support you through to completion.
Looking for something else? Try our other loan calculators
Apply for development finance today