Calculate wholesale real estate deals using the 70% rule, ARV, and rehab costs. Determine your maximum allowable offer (MAO), assignment fee, and potential profit.
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💰 Net Profit
$0
Total profit after all costs
📊 Return on Investment (ROI)
0.00%
Profit / Total Investment
💵 Total Investment
$0
Purchase + rehab + holding + closing costs
⭐ Profit Rating
—
Based on ROI threshold
📋 Deal Breakdown
ARV (After Repair Value)
$0
Purchase Price (−)
$0
Rehab Costs (−)
$0
Total Holding Costs (−)
$0
Closing Costs - Buying (−)
$0
Closing Costs - Selling (−)
$0
Realtor Commission (−)
$0
Net Profit
$0
Your wholesale fee if you sell the contract
💵 Maximum Allowable Offer (MAO)
$0
70% Rule: ARV × 0.70 − Rehab
📈 Buyer's Purchase Price
$0
MAO + your assignment fee markup
📝 Your Assignment Fee
$0
Your wholesale profit
🏠 Buyer's Estimated Profit
$0
ARV − buyer price − rehab − closing costs
The price you negotiated with the seller
The price the end buyer will pay
Your fee as percentage of the difference
For calculating buyer profit
📝 Your Wholesale Fee
$0
Your profit from the assignment
🏠 Seller's Proceeds
$0
What the seller gets (contract price)
🏠 Buyer's Estimated Profit
$0
ARV − buyer price − rehab − closing costs
📊 Price Spread
$0
Difference between contract & buyer price
🏠
3 Calculation Modes
Complete Deal Analysis, Maximum Allowable Offer (MAO) using the 70% rule, and Assignment Fee calculator — all in one tool.
📊
Profit Rating System
Color-coded ratings from Excellent (>20% ROI) to Poor (<5% ROI) help you quickly assess deal quality.
💰
70% Rule Integration
The industry-standard 70% rule (ARV × 0.70 − Rehab) automatically calculates MAO for any wholesale deal.
📈
Complete Deal Breakdown
See every cost component — purchase, rehab, holding, closing, commissions — with transparent itemized breakdown.
Wholesaling is where an investor finds a distressed property, negotiates a contract below market value, and assigns that contract to an end buyer for a fee. The wholesaler never buys the property — they profit by selling the right to purchase it.
This calculator helps you analyze every aspect: Maximum Allowable Offer (MAO) via the 70% rule, assignment fee calculation, and complete deal analysis with all costs factored in.
MAO = ARV × 0.70 − Rehab Costs
The 70% Rule: Maximum Allowable Offer for a wholesale deal
Success depends on finding properties where the spread between your contract price and the buyer's price is large enough for your fee while leaving the buyer sufficient profit. Most flippers need 20-30% profit potential after all costs.
How to Calculate Wholesale Real Estate Deals
Follow these steps to evaluate any wholesale deal:
1
Determine ARV: Research the After Repair Value using comparable recent sales (comps) in the area.
2
Estimate rehab costs: Get contractor quotes. Always add a 10-15% contingency buffer.
3
Apply the 70% rule: MAO = ARV × 0.70 − Rehab. Ensures the buyer has enough profit margin.
4
Calculate holding & closing costs: Taxes, insurance, utilities, HOA during holding period, plus both buying and selling closing costs.
5
Determine your assignment fee: The spread between your contract price and buyer's price. Typical fees: $5,000-$25,000.
6
Verify buyer profit: Ensure ARV − buyer price − rehab − closing costs is at least 20-30% — otherwise they won't buy.
Real-World Wholesale Example
🏡 Distressed Property Wholesale Deal
Scenario: A house with ARV of $300,000 needs $50,000 in rehab. Using the 70% rule: MAO = $300,000 × 0.70 − $50,000 = $160,000. You negotiate a contract with the seller at $160,000.
Assignment: You assign the contract to a buyer at $175,000.
Your Assignment Fee: $175,000 − $160,000 = $15,000
This deal works for everyone: the seller gets a fair price, you earn a $15,000 assignment fee, and the buyer profits $60,000 after their flip.
Wholesaling vs. Flipping vs. Buy-and-Hold
Understanding differences between these strategies helps choose the right approach:
Factor
Wholesaling
Flipping
Buy-and-Hold
Capital Required
Low ($0-$5K)
High ($50K-$200K+)
Moderate-High
Time to Profit
Weeks to months
3-12 months
Years
Risk Level
Low
High
Moderate
Profit Potential
$5K-$25K per deal
$20K-$100K+
Cash flow + appreciation
Skills Needed
Negotiation, marketing
Construction, project mgmt
Property management
Credit Score Needed
None
Good (for financing)
Good (for mortgage)
Wholesaling is the best entry point for new investors — little to no capital and no contractor experience needed. Build your network and capital, then graduate to flipping and buy-and-hold.
Understanding the 70% Rule
The 70% rule is a guideline for the max price to pay for a fix-and-flip: Max Price = ARV × 0.70 − Rehab Costs. The 30% buffer covers holding costs, closing costs, commissions, and the flipper's profit. For wholesalers, this rule determines what price you can negotiate with the seller — if your contract exceeds the MAO, the end buyer won't have enough margin.
Adjust the 70% rule based on your market. In hot markets, some investors use 75-80%. In slow markets or for heavy rehabs, 60-65% may be more appropriate. Always verify with comparable sales and your buyer's requirements.
Frequently Asked Questions
What is the 70% rule in wholesale real estate?
The 70% rule states an investor should pay no more than 70% of ARV minus repair costs: MAO = ARV × 0.70 − Rehab. The 30% buffer covers holding costs, closing costs, commissions, and buyer profit. For wholesalers, it determines the max contract price you can negotiate while leaving profit for the end buyer.
How do you calculate a wholesale assignment fee?
Your assignment fee is the difference between your contract price with the seller and the end buyer's price. Example: contract at $160,000 assigned for $175,000 = $15,000 fee. Fees are typically 5-15% of the spread and paid at closing from buyer funds.
What is a good profit margin for wholesale real estate?
Most wholesalers target $5,000-$25,000 per deal. A 10-20% ROI is good, above 20% is excellent. Since wholesaling requires little capital, even a $10,000 fee on $5,000 expenses yields 200% ROI. Focus on consistent deal flow rather than maxing single-deal profits.
What is the difference between wholesaling and flipping?
Wholesaling assigns a contract to a buyer for a fee — you never buy or renovate. Flipping requires purchasing, renovating, and selling the property. Wholesaling needs little to no capital and minimal risk; flipping needs $50K-$200K+ capital, construction expertise, and carries higher risk for larger profits.
How much money do I need to start wholesaling real estate?
Start with $0-$5,000. Main costs: earnest money deposit ($100-$1,000, refundable), marketing ($500-$2,000/month), and education. No down payment, renovation, or carrying costs needed. The real investment is time and effort building a buyers list, finding motivated sellers, and mastering negotiation.
⚠️ Important Disclaimer: This calculator is for educational purposes only. Actual outcomes depend on market conditions, buyer availability, inspections, title issues, and negotiations. The 70% rule is a guideline, not a guarantee. Always verify ARV with comps, get professional contractor estimates, and consult real estate attorneys and tax professionals. Wholesaling laws vary by state — ensure you comply with local licensing requirements.