Real Estate Wholesale Calculator
Instantly determine your Maximum Allowable Offer (MAO) and assignment fee. Calculate the spread to ensure your deal is a "slam dunk" for your cash buyers.
Offer Inputs
Deal Parameters
Wholesale MAO & Deal Analysis
MAO Calculation
- After Repair Value (ARV)
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- Less Buyer's Gross Profit
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- Target Buyer Net
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- Less Estimated Repairs
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- Less Wholesale Fee
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- Maximum Allowable Offer (MAO)
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Equity Summary
- Total Equity Spread (ARV − MAO)
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- Equity Spread as % of ARV
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- MAO as % of ARV
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The 70% Rule: The most widely used wholesale offer benchmark. When Buyer's Gross Profit is set to 30%, this calculator produces the classic 70% rule formula: MAO = (ARV × 70%) − Repairs. The wholesale fee is then subtracted from that figure to arrive at the offer price.
MAO % of ARV thresholds: A MAO at or above 65% of ARV is generally considered a viable deal for most markets. Between 50%–65% is marginal and requires careful repair estimation. Below 50% of ARV typically signals a deal that will not attract a qualified end buyer.
How We Calculate Your Maximum Allowable Offer (MAO)
The Wholesale Calculator uses a Reverse-Engineering Framework to determine the highest price a wholesaler can pay for a property. This methodology preserves three critical financial pillars simultaneously: the end buyer's profit target, the estimated cost of repairs, and the wholesaler's assignment fee.
The Core Formulas
Unlike a simple percentage-of-ARV shortcut, this model treats each cost layer as an explicit variable.
Maximum Allowable Offer (MAO) = [ARV × (1 - Buyer Profit %)] - Repairs - Wholesale Fee
The Step-by-Step Logic
Step 1: Target Buyer Net
First, we establish the maximum total acquisition cost the end buyer can absorb—including repairs and the wholesale fee—while still hitting their required gross profit:
Target Buyer Net = ARV × (1 - Buyer Profit %)
Step 2: Maximum Allowable Offer (MAO)
The wholesaler's costs (repairs and fee) are then deducted from that "Net" ceiling to arrive at the offer price:
MAO = Target Buyer Net - Estimated Repairs - Wholesale Fee
Key Performance Metrics
Total Equity Spread: The dollar difference between ARV and MAO (ARV - MAO). This is the "cushion" available to cover repairs, your fee, and the buyer's margin.
MAO % of ARV: The offer price as a percentage of ARV (MAO / ARV). This is the primary benchmark used to test deal viability against market norms.
Buyer's Gross Profit ($): The actual dollar amount your end buyer stands to make (ARV × Buyer Profit %).
The 70% Rule—and When to Deviate
The 70% Rule is the industry’s most common benchmark: MAO = (ARV × 70%) - Repairs.
In the Pathwaize calculator, setting the Buyer Profit % to 30% replicates this rule exactly. However, experienced wholesalers know when to adjust this percentage based on market conditions:
High-Value Markets (ARV > $400k): Buyers may accept a 75–80% rule because the absolute dollar profit is still significant even on a tighter percentage.
Distressed/Rural Markets: These often require a deeper discount (65% or below) to account for longer hold times and execution risk.
Light-Rehab Deals: Properties requiring only cosmetic updates often support a higher MAO because the buyer’s risk and carrying costs are lower.
Variables & Definitions
After Repair Value (ARV): The estimated market value post-renovation. A 10% error in ARV cascades through every other calculation; accuracy here is non-negotiable.
Buyer Profit %: The return your "Cash Buyer" requires. Standard fix-and-flip buyers typically look for 15%–25%.
Estimated Repairs: Total cost for materials, labor, and permits. Underestimating repairs is the #1 reason wholesale deals collapse during the assignment phase.
Wholesale Fee: Your assignment fee. This is a direct deduction from the MAO; a higher fee requires a lower purchase price from the seller.
Frequently Asked Questions
How does Pathwaize help me find cash buyers for my wholesale deals?
Pathwaize helps you manage and segment your buyers' list so you can instantly blast your analyzed deals to the right investors. Once you’ve used the calculator to confirm a profitable spread, you can use Pathwaize’s automated SMS and email tools to reach your "VIP buyers" the moment a contract is signed, significantly reducing your disposition time.
Can Pathwaize automate my wholesale lead follow-up?
Yes, Pathwaize uses conversational AI to follow up with motivated sellers until they are ready to sign. Wholesaling is a volume game; most deals don't close on the first call. Pathwaize ensures that while you are busy analyzing new properties, your existing leads are being nurtured automatically, so you never miss a contract because of a slow response.
How do you calculate a wholesale real estate deal?
The most common way to calculate a wholesale deal is using the MAO (Maximum Allowable Offer) formula: (ARV × 70%) – Repairs – Assignment Fee. This formula ensures there is enough "meat on the bone" for the end buyer (the flipper) to cover their renovation costs and profit margin, while still securing a fee for the wholesaler who sourced the deal.
What is a "Standard" wholesale assignment fee?
While assignment fees vary by deal size, most wholesalers aim for a minimum of $5,000 to $10,000 per transaction. In high-value markets, spreads of $25,000 or more are common. A wholesale calculator helps you "reverse engineer" your fee by starting with what a cash buyer is willing to pay and working backward to your offer price.
Why is the 70% rule important in wholesaling?
The 70% rule is a benchmark used to ensure a deal has enough equity to attract cash buyers. By staying at or below 70% of the After Repair Value (minus repairs), you account for the buyer's holding costs, closing costs, and renovation risks. Our calculator allows you to adjust this percentage based on your specific market—as some competitive markets may require a 75% or 80% rule.
What is the difference between "Assignment" and "Double Closing"?
An assignment is when you sell your interest in a contract for a fee, while a double closing involves two separate transactions where you briefly take title to the property. Wholesalers use the calculations from our tool to decide which method is best based on the size of the spread and the privacy requirements of the buyer and seller.
*Disclaimer: Use of this calculator signifies your agreement to our Terms of Use and the terms posted below.
The calculators and tools available on this website are intended solely for informational and educational use. Alone, they do not offer investment guidance. It is advised that you consult with a real estate expert prior to undertaking any investment activities. The outcomes shown may not accurately represent the return on your personal investments. Pathwaize bears no liability for any decisions or actions made based on the reliance on the information these tools provide. Moreover, Pathwaize does not accept responsibility for any errors or omissions, whether they be human or technical in nature. Pathwaize sources property details from a variety of external parties, and cannot guarantee the precision, completeness, or appropriateness of these property details. It is your responsibility to ensure the accuracy, completeness, and relevance of the property details for your needs is your responsibility.
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