Residential Development Feasibility Model - Profit, Margin on Cost & Equity IRR – Excel XLSX

The Residential Development Feasibility Model appraises a multi-unit residential development end to end, so you can decide whether a site is worth pursuing before you commit capital. Enter your project inputs once – land, number of units, average sale price, build cost, contingency, professional fees, consents, marketing, selling costs, funding and timing – and the Budget, Cashflow and Returns sheets calculate automatically.

The model is used to answer the questions a developer and their financier actually ask. What is the total development cost, broken down by line? What profit does the scheme generate, and what is the margin on total cost (profit divided by development, finance and selling costs)? What is the equity multiple and the annualised equity IRR once the drawdown and sales timing are accounted for? And how sensitive is profit to the two variables that really move a feasibility: the achieved sale price and the build cost?

Main features: a development budget by line; a monthly project cash flow over months 0 to 24 in which equity is drawn first, senior debt funds the balance with interest capitalised monthly, and sale proceeds repay debt before cash is released to equity; a Returns sheet showing profit, margin on total cost, equity multiple and monthly and annualised equity IRR; and a five-by-five sensitivity grid of net profit across sale price and build cost (finance cost held at base case, as noted on the sheet). A worked example is preloaded, and the profit ties to the equity cash flow to the cent, so the model is verifiable rather than a black box.

How to work with it: edit only the blue input cells; the yellow-filled cells are the key drivers to start with. The Budget, Cashflow and Returns tabs need no editing – they calculate. Thirteen built-in checks at the foot of the Returns sheet, rolled up into a master flag on the Cover, read OK or CHECK: the budget ties to the cash flow cost lines, net revenue ties to units, price and selling costs, equity plus debt drawn equals the funding deficits, debt rolls forward and is fully repaid, profit ties three ways, the IRR solves, and costs and settlement fall inside the 25-month cash flow.

Why you need it: a development decision is a large, largely irreversible bet, and a locked template hides the very assumptions you most need to stress. This model ships fully unlocked with every formula visible, a plain-English cover sheet and honest disclosure of each simplification. 510 live formulas, recalc-verified with zero formula errors. Currency-agnostic; treat $ as your currency. For analysis only, not investment advice.