Real Estate Development Pro Forma Waterfall

Land cost, hard costs, soft costs, and construction interest all stack up before a single unit sells. See the full sources and uses, and what's actually left for equity.

Reading This Tool

How To Use This Waterfall

Enter land cost, hard construction costs, soft cost percentage, financing terms, and projected exit value.

The bridge shows total project cost building up, including construction-period interest carry, then the resulting profit and equity multiple once the project sells.

Your Inputs

Land Acquisition Cost $2,000,000

Hard Construction Costs $8,000,000

Soft Costs (% Of Land + Hard) 15%

Construction Debt (% Of Total Cost) 65%

Construction Loan Interest Rate 8.0%

Construction Period (Months) 24

Projected Exit / Sale Value $15,000,000

Interest carry is calculated on the full debt amount for the entire construction period, a simplification. Actual construction loans typically draw down progressively, so real interest carry is often somewhat lower than this estimate.

Project Returns

Equity Multiple

0.00x

Required Equity

Projected Profit

Total Project Cost Build-Up To Exit Value

This is a simplified single-period model. A full development pro forma would also model a construction timeline with progressive draws, a lease-up or sales absorption period, and sensitivity to exit cap rate or sale price assumptions.

Modeling the exit as an income property instead of a sale?

Open The Real Estate Investment Analyzer →