Development Pro Forma Calculator

Yes -- Land Acquisition Cost feeds directly into Hard Costs, and Hard Costs is subtracted (along with Soft Costs, Financing Costs, and Contingency) from Net Revenue to get Total Profit. Since Soft Costs, Financing Costs, and Contingency are all calculated as percentages of Hard Costs, a higher Land Acquisition Cost also raises those three downstream cost categories, compounding its effect on profit beyond just the direct dollar-for-dollar increase.

Engineering, permitting, legal, design, financing interest, and contingency reserves scale primarily with the physical scope and cost of construction -- a bigger, more expensive build requires more engineering and financing regardless of what the lots eventually sell for. Basing these percentages on Hard Costs rather than Gross Revenue keeps the cost side of the pro forma internally consistent even if market sale prices shift independently of construction costs.

Profit Margin divides Total Profit by Gross Revenue, showing what share of each sale dollar is profit, while ROI divides Total Profit by Total Project Cost, showing how much profit was generated per dollar actually spent building and carrying the project. These can diverge meaningfully: a project with thin margins but low capital cost can still post a strong ROI, and vice versa.

Indirectly, yes -- Total Project Cost includes Sales Commission, which is calculated as a percentage of Gross Revenue (Total Lots times Avg Sale Price per Lot), so a higher sale price raises the commission dollar amount even though the rest of Total Project Cost (Land Acquisition Cost, Site Development, Soft Costs, Financing Costs, and Contingency) depends only on Hard Costs and never on sale price at all. This is a smaller effect than the direct revenue impact, since only the commission percentage of the sale price increase flows through to cost.