GDV.calculator

Profit on Cost vs Profit on GDV

PoC = (GDV minus costs) divided by costs. PoGDV = (GDV minus costs) divided by GDV. On a 1m cost / 1.2m GDV deal, PoC is 20 percent and PoGDV is 16.7 percent. PoC always reads higher because GDV always exceeds cost on a viable scheme. Both numbers are right; they serve different audiences.

Conversion formula

PoGDV = PoC / (1 + PoC). PoC = PoGDV / (1 - PoGDV). 20 percent PoC equals 16.7 percent PoGDV. 17.5 percent PoGDV equals 21.2 percent PoC.

Which to use in negotiation

  • Planning negotiation: use PoGDV (matches NPPF / PPG-Viability language).
  • Lender underwriting: use PoC (matches credit-paper convention).
  • JV equity conversation: use IRR (neither PoC nor PoGDV; IRR captures time).

Why the difference matters

On a viability-marginal scheme the developer may legitimately quote 17.5 percent PoGDV (defensible benchmark) to a planning officer and 20 percent PoC to a lender. The two figures describe the same deal.

Planning Practice Guidance: Viability· Dec 2025Appraisal model reviewed by Oliver Wakefield-Smith (data integrity) with chartered-surveyor (MRICS) and CTA tax review. No affiliate links.