Wholesale Deal Calculator Formula

Understand the math behind the wholesale deal calculator. Each variable explained with a worked example.

Use the Wholesale Deal Calculator

Formulas Used

Your Assignment Fee

your_assignment_fee = assignment_fee

End Buyer Purchase Price

buyer_price = buyer_purchase_price

End Buyer Estimated Profit

end_buyer_profit = buyer_profit

End Buyer ROI

buyer_roi = buyer_total_cost > 0 ? buyer_profit / buyer_total_cost * 100 : 0

MAO at 70% Rule

max_allowable_offer = mao_70

End Buyer Total Cost

buyer_total = buyer_total_cost

Variables

VariableDescriptionDefault
arvAfter Repair Value (ARV)(USD)300000
rehab_costEstimated Rehab Cost(USD)40000
contract_priceYour Contract Price with Seller(USD)160000
assignment_feeYour Assignment Fee(USD)10000
buyer_closing_pctEnd Buyer Closing + Holding Costs(%)12
buyer_purchase_priceDerived value= contract_price + assignment_feecalculated
buyer_closing_costsDerived value= arv * buyer_closing_pct / 100calculated
buyer_total_costDerived value= buyer_purchase_price + rehab_cost + buyer_closing_costscalculated
buyer_profitDerived value= arv - buyer_total_costcalculated
mao_70Derived value= arv * 0.70 - rehab_costcalculated

How It Works

Wholesale Real Estate Deals

Wholesaling involves getting a property under contract at a low price and assigning the contract to an end buyer (flipper or landlord) for a fee.

How It Works

1. Find a distressed property below market value 2. Get it under contract with the seller 3. Find an end buyer willing to pay more 4. Assign the contract for an assignment fee

The Assignment Fee

Your profit is the difference between your contract price and the end buyer's price. Typical wholesale fees range from $5,000 to $20,000 per deal.

Making the Deal Work for Everyone

The deal must leave enough profit for the end buyer. Use the 70% rule: the end buyer's total cost (purchase + rehab) should not exceed 70% of ARV to ensure adequate profit margin.

Worked Example

ARV $300,000, rehab $40,000. Contract price $160,000, assignment fee $10,000. End buyer faces 12% closing/holding costs.

arv = 300000rehab_cost = 40000contract_price = 160000assignment_fee = 10000buyer_closing_pct = 12
  1. 01End buyer purchase price: $160,000 + $10,000 = $170,000
  2. 02End buyer closing/holding: $300,000 x 12% = $36,000
  3. 03End buyer total cost: $170,000 + $40,000 + $36,000 = $246,000
  4. 04End buyer profit: $300,000 - $246,000 = $54,000
  5. 05End buyer ROI: $54,000 / $246,000 = 22.0%
  6. 06MAO at 70%: $300,000 x 70% - $40,000 = $170,000
  7. 07Your assignment fee: $10,000

Ready to run the numbers?

Open Wholesale Deal Calculator