To the question of calculation the entrepreneur profits when applying the costs approach to the evaluation of the real estate cost

The article discusses the problems that arise when calculating the profit of an entrepreneur when using a costly approach to assessing the value of real estate. The interpretation of the term «entrepreneurial profit» is discussed. We analyze the disadvantages inherent in the costly approach: the assumption of instant creation of land improvements and the impossibility of taking into account investment risks in the process of calculating their value. A formula is proposed for calculating the entrepreneur’s profit for objects with different levels of risk, the amount of financing and the construction time, allowing to level out the identified shortcomings.