The net profit is the difference between the estimated development cost and capital value for the design. A higher net profit suggests improved design performance.

Each use type has different financial considerations and thus has different inputs and a different way of calculating Profits, for example a residential development for sale works differently from a hotel development. Delve allows the user to input metrics specific to the UseTypes they have in their project.

Price of Land can be inputted as a lump sum monetary value of separate values per parcel, or a cost per sqft which Delve uses to calculate the total Price of Land.

Price of Parcel = Price/sqft x Parcel Area

Price of Land = Price of Parcel 1 + Price of Parcel 2 + … + Price of Parcel n

A construction cost per sqft can be inputted for every UseType in every building type as well as for streets, parks etc. Hard Cost includes the construction cost for every UseType depending on the GFA of the usetype and construction cost of site elements along with initial investments such as cost of buying land. The Hard Cost is weighted by the unit type percentages in case of residential floors.

Hard Cost = ( Sum of all UseTypes [ Construction Cost of UseType/sqft x UseType GFA ] ) + ( Construction Cost of Site Elements/sqft x Total GFA ) + Price of Land

This hard cost is weighted depending on the premiums (collected from users) applied onto the construction cost based on building heights (number of floors).

Soft Cost = (Weighted Hard Cost x Soft Cost %) / 100

Development Cost is a total of the Hard Cost for buildings and site elements along with the Soft Cost associated with the building.

Development Cost = Weighted Hard Cost + Soft Cost

NOI for a UseType = (Net Annual Rent x NSF x Occupancy Rate) - (Operating Expense x NSF)

Total NOI is the sum of NOI from all the different UseTypes in the project.

Capital Value = (Net Operating Income / Cap Rate) + (Sale Price x NSF)

Net Profit = Capital Value - Development Cost