How to Calculate Developer Fees

How to Calculate Developer Fees
A developer designs, manages and takes a financial risk in developing property.

Step 1

Convert the developer's fee percentage into decimal format. For example, if the fee is 5 percent, you would have a percentage of .05.

Step 2

Calculate the total cost of the project. This includes all labor, the cost of the land, materials and time. If you are unsure, consult the developer.

Step 3

Multiply the total cost of development by the percentage in decimal form. For example, if the cost of development is $500,000 and the developer's fee is 5 percent, your equation would be 500,000 x .05.

Step 4

Double-check your multiplication. The result of multiplying the total cost of development by the percentage in decimal form is the developer's fee in dollars. For example, 500,000 x .05 = 25,000. The developer's fee is $25,000.