About the Wholesale Real Estate Calculator
Wholesaling means putting a property under contract at a discount and assigning that contract to an investor for a fee. The deal only works if there is enough room for both of you: your assignment fee on top, and a healthy profit for the cash buyer or flipper who closes. This wholesale real estate calculator works backward from the after-repair value (ARV) to find the most an investor will pay, then the most you can offer the seller while still earning your target fee.
It is built for wholesalers preparing offers, new investors learning the 70% rule, and buyers checking whether a wholesaler’s price leaves enough margin. Enter the ARV, the repair estimate, the percentage rule your buyers use, your target fee and marketing or closing costs, plus the price you have (or plan to have) under contract.
The investor’s maximum allowable offer (MAO) is ARV × rule % − repairs. The calculator also estimates the buyer’s profit after their holding, financing and selling costs. Assignment rules differ by state, and some require a license or disclosure, so check local law before marketing contracts.
With the default inputs, the your maximum offer to the seller is $155,000.00. Change any value above to recalculate instantly.
How to use the wholesale real estate calculator
- 1Enter the after-repair value from recent renovated comparable sales.
- 2Enter a realistic repair estimate and the percentage rule your buyers use.
- 3Enter your target assignment fee and your deal costs.
- 4Enter your contract price with the seller to see your actual fee.
- 5Check that the end buyer still has a healthy profit before assigning.
Formula and method
Cash buyers and flippers commonly cap what they pay using a rule of thumb: a percentage of the after-repair value (70% is the classic figure) minus the repair budget. That maximum allowable offer (MAO) is the most your end buyer will pay you, so everything you earn must fit between your contract price and the MAO.
Subtracting your target assignment fee from the MAO gives the highest price you can offer the seller. Your net profit is the assignment fee less your marketing and deal costs. The buyer’s profit estimate takes the ARV, subtracts the price they pay (MAO, or your contract price if higher), repairs, and holding, financing and selling costs expressed as a share of ARV.
- ARV
- After-repair value
- rule%
- Share of ARV the investor will pay before repairs
- MAO
- End buyer’s maximum allowable offer
Worked examples
$300k ARV with $40k repairs and the 70% rule
An investor will pay up to 70% × $300,000 − $40,000 = $170,000. To make $15,000 you can offer the seller $155,000; with the house under contract at $150,000 you can assign for $20,000 and net $18,000. The buyer still clears about $60,000 after $30,000 of costs, a 25% return on cost.
Cheaper house in a 75% market
At 75% of a $180,000 ARV minus $25,000 repairs, the buyer MAO is $110,000. A $100,000 contract leaves exactly the $10,000 target fee, or $8,500 after costs, and the investor keeps about $30,600 (20.5% on cost).
Frequently asked questions
How do you calculate a wholesale offer?+
Start with the after-repair value, multiply by your buyers’ rule (often 70%), subtract repairs to get the buyer’s maximum allowable offer, then subtract your assignment fee. The result is the most you should offer the seller.
What is a typical assignment fee?+
Assignment fees vary widely with deal size and market, commonly from a few thousand dollars to $10,000–$20,000 or more on larger deals. The fee must still leave the end buyer enough profit to want the deal.
What is the 70% rule in real estate?+
The 70% rule says an investor should pay no more than 70% of a property’s after-repair value minus repair costs. The remaining 30% covers holding, financing and selling costs plus the investor’s profit.
Is wholesaling real estate legal?+
Assigning a purchase contract is legal in most US states, but several states now regulate wholesaling, requiring disclosures or a real estate license when marketing contracts. Check your state’s rules and use a local attorney or title company.
What is the difference between an assignment and a double close?+
In an assignment you transfer your contract to the buyer for a fee that appears on the settlement statement. In a double close you buy the property and immediately resell it, which keeps your profit private but adds closing costs and may require transactional funding.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.