> ## Documentation Index
> Fetch the complete documentation index at: https://help.parafin.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Budget assumptions

> Adjust land, construction, soft costs, FF&E, contingency, fee, and construction-loan inputs.

The **Budget** tab in **Edit Assumptions** sets every cost input behind the [Development Budget](/working-with-projects/result-tables#development-budget). Adjust a field, then click **Recalculate** and the model refreshes the outputs.

Each section below is one accordion in the tab.

## Land Acquisition

| Field            | What it means                   | Units          |
| ---------------- | ------------------------------- | -------------- |
| Land Acquisition | The purchase price of the site. | \$/sf or \$/ac |

Enter the land cost per square foot or per acre. The model converts to a total using the site area.

## Hard Costs

| Field      | What it means                                   | Units                |
| ---------- | ----------------------------------------------- | -------------------- |
| Hard Costs | The vertical construction cost of the building. | \$/gsf or \$ per key |

Enter hard costs per gross square foot or per key. A **Cost index** toggle scales the figure between a base index of 1.00 and a location-specific construction index, so the same base cost reflects local pricing.

## Soft Costs

| Field      | What it means                                         | Units                     |
| ---------- | ----------------------------------------------------- | ------------------------- |
| Soft Costs | Design, permitting, and other non-construction costs. | \$/gsf or % of Hard Costs |

Enter soft costs per gross square foot or as a percentage of Hard Costs. The same **Cost index** toggle applies.

## Custom Budgets

| Field             | What it means                                                      | Units |
| ----------------- | ------------------------------------------------------------------ | ----- |
| Add custom budget | An extra budget line for a cost the standard fields don't capture. | \$    |

Add a custom line, name it, and enter its amount. Custom lines flow into the Total Budget and can be included in the Developer Overhead & Fee and Contingency Allowance calculations.

## Developer Overhead & Fee

| Field                    | What it means                                                                         | Units |
| ------------------------ | ------------------------------------------------------------------------------------- | ----- |
| Developer Overhead & Fee | The developer's fee and overhead, applied as a percentage of the selected cost lines. | %     |

The percentage applies to the items you select — Land, Hard Costs, Soft Costs, Guestroom FF\&E, and any custom lines.

## Contingency Allowance

| Field                 | What it means                                                                             | Units |
| --------------------- | ----------------------------------------------------------------------------------------- | ----- |
| Contingency Allowance | A reserve held against cost overruns, applied as a percentage of the selected cost lines. | %     |

Choose which cost lines the contingency applies to.

## Guestroom FF\&E

| Field           | What it means                                                                          | Units  |
| --------------- | -------------------------------------------------------------------------------------- | ------ |
| Guestroom FF\&E | Furniture, fixtures, and equipment for the guestrooms, set per key for each room type. | \$/key |

Set a per-key FF\&E budget for each room type in the mix.

## Construction Loan

| Field         | What it means                                                                                                               | Units  |
| ------------- | --------------------------------------------------------------------------------------------------------------------------- | ------ |
| Loan-to-Cost  | Share of the Total Budget funded by the construction loan.                                                                  | %      |
| Interest Rate | Annual interest rate on the construction loan.                                                                              | %      |
| Fees          | All origination, lender, and closing costs for sourcing the loan.                                                           | %      |
| Period        | Time from land acquisition to the end of the first operating year; spreads development costs and sets the interest reserve. | months |

For the outputs these inputs feed, see [Reading your result tables](/working-with-projects/result-tables#development-budget).