Wholesale Assignment Calculator
Wholesale Deal Examples
Sample deals using the 70% rule with a $10,000 assignment fee.
| ARV | Repairs | MAO | Contract Price | End Buyer Profit |
|---|---|---|---|---|
| $150,000 | $20,000 | $75,000 | $75,000 | $35,000 |
| $200,000 | $30,000 | $100,000 | $100,000 | $50,000 |
| $250,000 | $40,000 | $125,000 | $125,000 | $65,000 |
| $300,000 | $50,000 | $150,000 | $150,000 | $80,000 |
| $400,000 | $60,000 | $210,000 | $210,000 | $110,000 |
| $500,000 | $75,000 | $265,000 | $265,000 | $140,000 |
How We Calculate This
This wholesale assignment calculator uses established formulas and industry-standard data to provide accurate estimates.
- Enter your specific values into the calculator fields above
- Our algorithm applies the relevant formulas using your inputs
- Results are calculated instantly in your browser — nothing is sent to a server
- Review the detailed breakdown to understand how each factor affects your result
These calculations are estimates based on standard formulas. For critical decisions, always consult a qualified professional.
How to Convert Oven Recipes to Air Fryer
Wholesale real estate investing means getting a property under contract at a low price and assigning that contract to an end buyer (usually a fix-and-flip investor) for a fee. The key formula is the Maximum Allowable Offer (MAO).
The basic rule:
- MAO = ARV × 70% − repair costs − your wholesale fee
- If the seller's asking price is at or below the MAO, the deal is viable
- The end buyer needs enough margin (typically 30% of ARV) to profit after repairs, holding costs, and resale expenses
The 70% rule is an industry standard that leaves enough margin for the end buyer to profit. In competitive markets you might use 75%, and in uncertain markets, 65%. Always verify your ARV with recent comparable sales and get repair estimates from contractors.
When Would You Use This Calculator?
This wholesale assignment calculator is designed for anyone who needs quick, reliable estimates without complex spreadsheets or professional consultations.
- When you need a quick estimate before committing to a purchase or project
- When comparing different options or scenarios side by side
- When planning a budget and need to understand potential costs
- When you want to verify a quote or estimate you've received from a professional
- When teaching or learning about the concepts behind these calculations
Frequently Asked Questions
What is wholesale real estate?
Wholesale real estate is a strategy where you find distressed or undervalued properties, get them under contract at a low price, and then assign (sell) that contract to an end buyer — typically a fix-and-flip investor — for a fee. You never actually buy or renovate the property.
What is the 70% rule?
The 70% rule states that an investor should pay no more than 70% of a property's After Repair Value (ARV) minus repair costs. This leaves a 30% margin for holding costs, closing costs, and profit. Example: if ARV is $200,000 and repairs are $30,000, max offer = $200,000 × 0.70 − $30,000 = $110,000.
How much is a typical wholesale fee?
Wholesale assignment fees typically range from $5,000 to $20,000 per deal. On higher-value properties, fees of $25,000-$50,000 are possible. The fee depends on how much room there is in the deal — it's the spread between your contract price and what the end buyer is willing to pay.
Do I need money to wholesale real estate?
Technically, you need very little. An earnest money deposit ($500-$2,000) secures the contract. You assign the contract before closing, so you never need to fund the purchase. However, you'll need money for marketing to find deals (direct mail, driving for dollars, etc.) and possibly an LLC and basic legal costs.
Is wholesaling legal?
Wholesaling is legal in all 50 states, but some states have specific regulations. Some require you to disclose that you're assigning the contract. A few states require a real estate license to wholesale. Check your state's laws and consider working with a real estate attorney on your first deals.
How do I find the ARV?
ARV (After Repair Value) is determined by looking at comparable properties (comps) that have recently sold in the same area in renovated condition. Look at 3-6 comps within 0.5-1 mile that sold in the last 3-6 months with similar size, bedrooms, and condition. Use Zillow, Redfin, or the MLS for data.