Profit on Cost

Profit on cost expresses a development project’s net profit as a percentage of its total development cost. It is one of the key measures of the return on investment in a real estate project, and can be alternatively referred to as profit margin, margin on cost, developer margin, or profit percentage.

The formula for profit on cost is as follows:

1, 2 - For a more in-depth understanding of how Delve derives these values from its financial model, see the Financial Model Overview and the Financial Terminology Glossary