Real Estate Wholesaling Profit Calculator

Calculate Maximum Allowable Offer (MAO) and assignment fee for real estate wholesaling deals. Enter ARV, repair costs, and target profit to analyze deals using the 70% rule. Essential for wholesalers.

What is Real Estate Wholesaling Profit Calculator?

The Wholesaling Profit Calculator helps wholesalers analyze the returns of their deals.

Formula

Wholesale Profit = Assignment Fee

ROI = (Assignment Fee / Earnest Money) × 100

Profit Margin = (Assignment Fee / ARV) × 100

Total Capital at Risk = Earnest Money Deposit

Example: $10,000 Assignment Fee / $1,000 Earnest Money = 1,000% ROI

How to Calculate

Enter contract price and assignment fee.
Input earnest money.
View ROI and profit margin.

Example

A $150K contract with $10K assignment fee and $1K earnest money yields 1,000% ROI.

Key Benefits

Revenue minus cost net profit precise
Gross margin net margin rates
Breakeven volume at your price point
Data-driven pricing decisions

Common Mistakes to Avoid

Fixed vs variable costs both needed
Revenue before expenses not profit
Confusing gross vs net profit

Pro Tips

Track all costs not just product cost
Increase price to improve margin best lever
Review profitability quarterly

Key Terms Explained

Revenue: Total sales income
COGS: Direct production cost per unit
Gross Profit: Revenue minus COGS
Net Profit: All costs subtracted

Common Use Cases

Deal analysis
Fee negotiation
Investment planning

Frequently Asked Questions

What is real estate wholesaling?

Wholesaling is finding discounted properties, putting them under contract, and assigning the contract to an investor for a fee.

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