Development exit finance calculator
Size a development exit bridge against gross development value. See the gross loan, the net advance after fees and retained interest, the equity released after clearing your development lender, and the monthly saving against development finance.
A development exit bridge is sized on the finished value of your scheme, then reduced by the arrangement fee and the interest retained for the term. Enter the gross development value, what you still owe your development lender, and indicative terms. The calculator returns the gross loan, the net day-one advance, the equity released once the development lender is repaid, the monthly carry, and, if you enter your current development finance rate, the monthly saving. Use it to arrive with a grounded number before you speak to us.
- Gross loan (LTGDV cap)£0
- Arrangement fee£0
- Retained interest (term)£0
- Repay development lender£0
- Equity released£0
- Monthly carry (exit bridge)£0
- Monthly saving vs dev finance£0
Indicative only. Not financial advice or an offer of finance. Retained interest is refunded if the loan redeems early.
How the development exit calculation works
- Gross loan = GDV × max loan to GDV. The facility measured against the finished value of the scheme.
- Arrangement fee = gross loan × fee percent, deducted on day one.
- Retained interest = gross loan × monthly rate × term, held back so you do not service interest while units sell.
- Net day-one advance = gross loan less the arrangement fee and the retained interest.
- Equity released = net advance less the balance repaid to your development lender, where that is positive.
- Monthly saving = (your development finance rate less the exit-bridge rate) × the gross loan.
The gross loan here is the loan-to-GDV cap. On a real case a lender also tests the valuation, the sales evidence and the property type, so treat this as a sizing guide rather than a decision. See the loan to GDV and development exit finance costs guides for the detail, or equity release on a completed scheme for the cash-out route.
Development exit finance calculator: common questions
How do you calculate a development exit loan?
The gross loan is sized as a percentage of gross development value (GDV), commonly up to 70 to 75 percent. From that gross figure the lender deducts the arrangement fee and, on most exit bridges, the interest retained for the term. What is left is the net day-one advance. If the net advance is more than the balance owed to your development lender, the difference is equity released. All figures are indicative and not an offer of finance.
What is retained interest, and why does it reduce the advance?
On a development exit bridge the interest for the full term is usually retained (held back) or rolled up rather than paid monthly, so it does not drain cash flow while units sell. Retained interest is deducted from the gross loan on day one, which is why the net advance is lower than the gross loan. If units sell and the loan redeems early, unused retained interest is normally refunded.
How much cheaper is a development exit bridge than development finance?
A development exit bridge is usually priced below development finance because the build risk is gone once the scheme is complete. The monthly saving is the difference between your current development finance rate and the exit-bridge rate, applied to the loan balance. Enter both rates in the calculator to see the indicative monthly carry saving. Actual pricing varies by lender, scheme and leverage.
What loan to GDV can I get on a development exit?
Indicatively up to 70 to 75 percent of gross development value on a completed or nearly completed scheme, depending on the property type, the strength of the sales evidence and the exit. Leverage is set against GDV rather than cost. All bands are illustrative, vary by lender and scheme, are subject to sign-off and are not an offer.
Is this calculator an offer of finance?
No. It is an indicative model to help you size a development exit before you speak to us. The real figure depends on the valuation, the lender, the property type and the sales position. Send us the scheme and we will come back with a view on fundability and likely terms within one working day.
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GDV calculator
Work out the gross development value this tool sizes the loan against.
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Check the loan to GDV a given loan implies against your finished value.
Open →Development exit finance
The product itself: repay development finance at completion and fund the sales period.
Learn more →Have a scheme to size?
Send us the scheme and the gross development value and we will model the achievable exit across the market and come back with a view on fundability within one working day.