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FAR Bonus Value Calculator

FAR bonuses reward developers for public-benefit features.

$
$

Net FAR bonus value

$2,000,000

Additional GFA

37,500

Gross additional value

$4,500,000

How the math works

Additional GFA = lot × (bonus FAR − base FAR). Gross = GFA × value. Net = gross − compliance.

25k × 1.5 = 37.5k SF × $120 = $4.5M gross − $2.5M compliance = $2M net bonus value.

How to Use

  1. Enter lot area SF.
  2. Enter base FAR.
  3. Enter bonus FAR.
  4. Enter value per SF GFA.
  5. Enter bonus compliance cost.
  6. Read net FAR bonus value.

Frequently Asked Questions

Typical bonuses?

Affordable housing set-aside (10-20% units): +25-40% FAR. LEED Gold: +10-15%. Public plaza: +5-15%. Historic preservation: +10-30%. Subway entrance: +5-10%. Each jurisdiction has unique menu of bonuses.

Bonus economics?

Additional FAR → additional GFA → additional units × sale/rent. Offset by bonus compliance cost (affordable unit subsidy, LEED premium, plaza construction). Net value typically $50-250/SF added GFA.

Negotiation process?

Discretionary approval typical. Planning board decides. Public hearing required. Neighborhood concerns (traffic, shadow, height) often block. 6-12 month process. Legal cost $20-75k. Experienced zoning counsel essential.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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