Wholesaling Profit Calculator

Determine how much you can earn on a wholesale real estate deal by analyzing the spread between your contract price and the end buyer's purchase price. This calculator helps you find the maximum allowable offer and projected assignment fee for any wholesale opportunity.

The Wholesaling Profit Calculator helps you analyze a wholesale deal by computing the spread between what you contract a property for and what an end investor is willing to pay. The calculation starts with the after-repair value of the property. This is the price the property would sell for on the open market after all necessary renovations are completed. You can estimate ARV by reviewing comparable sales in the neighborhood. Next, the calculator subtracts the estimated repair cost from the ARV. This gives you the property's value in its current condition from an investor's perspective, before applying any discount. Investors buying from wholesalers expect a discount below this figure to account for their own profit margin, risk, and carrying costs. The investor discount percentage represents how far below the adjusted value an end buyer expects to purchase. A typical investor discount is 25-30% of the ARV. The calculator applies this discount to determine the maximum price an end investor would pay for the property. Your wholesale profit, also called the assignment fee, is the difference between the maximum investor price and your contract price with the seller. For example, if an investor would pay $160,000 and you have the property under contract for $150,000, your assignment fee is $10,000. The calculator also shows the deal as a percentage of ARV so you can quickly compare opportunities. A lower contract price relative to ARV means more room for profit and a more attractive deal for your end buyer, making it easier to assign the contract quickly.

The most important skill in wholesaling is accurately estimating the after-repair value. Your end buyer is an experienced investor who will verify your ARV, and if your numbers are inflated, the deal will fall apart. Pull comparable sales from the last 90 days, focus on properties with similar square footage and condition, and be conservative. An accurate ARV builds trust with your buyer list and leads to repeat business.

Your maximum allowable offer to the seller must leave enough room for both your assignment fee and the end investor's profit. A common formula is MAO equals 70% of ARV minus repair costs minus your desired assignment fee. If the numbers do not work at the seller's asking price, negotiate or walk away. Forcing a deal with thin margins often results in the contract falling through when your buyer does their own analysis.

Building a strong cash buyer list is just as important as finding deals. The fastest wholesalers have a network of investors ready to close quickly. Attend local real estate investor meetups, pull cash buyer data from recent county recordings, and market your deals through email blasts and investor-focused platforms. A deep buyer list means you can assign contracts within days rather than weeks.

Transparency about repair estimates protects your reputation and reduces fallthrough risk. Walk the property yourself, take detailed photos, and get contractor estimates when possible. Provide your end buyer with a clear scope of work and honest repair numbers. Buyers who trust your assessments will pay higher assignment fees and close more consistently than those who feel surprised by the property's condition.

Assignment fees typically range from $5,000 to $20,000 per deal, depending on the property value and market. In higher-priced markets, fees of $15,000-$30,000 are common. The fee is determined by the spread between your contract price and the price your end buyer is willing to pay, so finding deeply discounted properties is the key to larger fees.

Research recent comparable sales within a half-mile of the subject property. Focus on homes that have been recently renovated with similar square footage, bedroom and bathroom counts, and lot size. Use the MLS, county records, or platforms like Zillow and Redfin to pull comps from the last 90 days for the most accurate ARV estimate.

Most fix-and-flip investors look for a discount of 25-30% below the after-repair value to cover their rehab costs, holding costs, selling expenses, and profit margin. In competitive markets, some investors accept thinner margins around 20%. Use 30% as a conservative starting point to ensure your deals are attractive to a wide range of buyers.

Licensing requirements vary by state. Some states allow wholesaling without a license as long as you are assigning a contract you have equitable interest in. Other states have enacted regulations requiring a license for repeated wholesale transactions. Check your local laws and consult a real estate attorney to ensure compliance in your market.

This calculator provides estimates for informational purposes only. Results are based on the inputs you provide and standard financial formulas. Actual amounts may vary based on your specific situation, location, lender requirements, and market conditions. This is not financial, tax, or legal advice. Always consult with qualified professionals before making real estate or financial decisions.

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Assignment Fee

$10,000.00

Max Allowable Offer$160,000.00
Investor Purchase Price$160,000.00
Profit Margin0.07%

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