There's a new Interest Calculator on the block at LandFund. Here's everything you need to know.
Why is it important to calculate Interest costs?
By calculating your Interest costs, you'll get a fuller (and more accurate!) picture of how much your development will cost. Essentially, you'll:
Minimise risk
Have a full financial understanding of your potential project
What methods can I use to calculate Interest costs on LandFund?
We like to give you options, so we now have 3 methods of calculating Interest costs:
Full Loan
Drawn Balance (S-Curve)
Drawn Balance (Cashflow)
What is Full Loan?
As the name suggests, this calculates your interest based on the full loan throughout the whole term.
What is Drawn Balance (S-Curve)?
This is where the Interest is calculated based on all balance being drawn according to a standard S-Curve. It's called an S-Curve because that's the shape usually produced by the typical flow of costs on a development project. This is the most widely used estimation technique in the industry.
What is Drawn Balance (Cashflow)?
This is our newest feature, and it's one we're pretty excited about! Create your cashflow and pull those costs directly into your appraisal.
What's so great about Drawn Balance (Cashflow)?
Well, rather than a simple estimate of funding costs, you can now calculate your costs based on your tailored cashflow statement. In other words, we've given you a much more accurate and transparent way of estimating your costs.
How do I use the Interest Calculator?
Head to LandFund
Create a new appraisal or open an existing one
Scroll down to the 'Funding' section
Click 'Add new loan' or 'Edit existing loan'
Enter in your loan details
Click the drop-down box under 'Interest Calculation' and select your preferred option
For the most accurate estimation:
Create your Cashflow for the development
Click 'Drawn balance (Cashflow)' and the values will be automatically updated
Finally, here's a quick on-screen demo:
Feedback
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