Estimate total development cost, financing and interest during construction, and either yield-on-cost (lease & hold) or profit margin and a simple annualized return (sell on completion) for a commercial project in Thailand. Free, unbiased, no paid placement.
← Commercial Real Estate Hub · Also try: Investment Calculator (existing assets)
Set the site cost, the buildable area, and a per-sqm construction budget. Soft costs cover design, permits, EIA, financing fees and contingency.
Construction loans typically fund a share of cost, with interest accruing over the build period before any income or sale proceeds arrive.
Model either leasing the completed building (yield-on-cost) or selling it on completion (profit margin & a simple annualized return).
Estimates only, for early feasibility screening — not investment, engineering, legal or tax advice. Real projects require a licensed quantity surveyor's cost estimate, a full EIA/permitting timeline where applicable, and underwriting against an actual rent roll or sale comparables. BAANLYY and One Life Ventures Co., Ltd. are not financial advisors and do not guarantee any project's feasibility or return.
This calculator turns a site and a construction budget into the numbers a developer checks before committing to a project: total development cost (land, hard construction cost, soft costs and contingency, plus interest accrued during the build), and — depending on your exit strategy — either yield-on-cost, the stabilized Net Operating Income a completed building would produce as a percentage of what it cost to build, or profit margin and a simple annualized return if you plan to sell on completion. See Project Delivery Stages: Land to Handover for how these numbers fit into the full development timeline.
Yield-on-cost answers a different question than a cap rate does. A cap rate tells you the return on buying an existing, stabilized asset at market price. Yield-on-cost tells you the return on building the same kind of asset from scratch. Developers generally want their yield-on-cost to sit meaningfully above prevailing cap rates for comparable stabilized properties — the gap is the compensation for taking on construction risk, leasing-up risk, and the years it takes to get there. Compare the figure this tool produces against current cap rates on the Investment Calculator for the same asset type and location.
Unlike a loan against a stabilized, income-producing property, a construction loan typically doesn't get serviced from rental income — because there isn't any yet. Interest instead accrues (often compounding) against the drawn loan balance throughout the build, which is why this calculator adds an estimated development-period interest cost on top of land and construction cost rather than treating it as an ongoing operating expense. A longer development period or a higher loan-to-cost ratio both increase this figure meaningfully — small delays can move the numbers more than people expect.
To keep the calculator usable, several Thailand-specific items are left for you to layer on separately: whether the site's zoning and Floor Area Ratio (FAR) actually permit the GFA you've entered; whether the project type triggers a mandatory EIA, which can add significant time (and carrying cost) before construction can even start; foreign land-ownership restrictions under the Foreign Business Act, which usually push foreign-backed projects toward a Thai limited company or long leasehold structure; and corporate or capital gains tax on any eventual sale, which varies by ownership structure and holding period. None of these change the underlying cost-and-return formulas, but all of them can change the timeline and the number you should actually underwrite to.
Talk to BAANLYY about development sites, market guidance, and connecting with qualified professionals.
Educational estimating tool only — not investment, engineering, legal or tax advice. Results depend entirely on the assumptions you enter and are not a valuation, feasibility study or projection of any specific project's performance. Confirm figures, zoning, EIA requirements and ownership structure with licensed Thai professionals before committing capital. BAANLYY and One Life Ventures Co., Ltd. are not financial advisors and never take paid placement in editorial content.