Land Residual Calculator

Determine the maximum supportable land price for development projects using the residual valuation method.

Projected Sale Price ($)

Construction Costs ($)

Soft Costs ($)

Developer Profit (%)

Financing Costs ($)

Carrying Costs ($)

Residual Land Value Analysis

Maximum Land Value

$950,000

Land % of Project

19.0%

Total Development Costs

$3,300,000

Developer Profit

$750,000

Land Residual Formula

Residual Land Value = Projected Sale Price - Total Development Costs - Developer Profit

This method works backward from the expected completed value to determine the maximum amount that can be paid for land while still achieving the target profit margin.