Real Estate & Investing
Wholesale Assignment Fee Calculator
Compare your contract price with the price to the end buyer to see the assignment fee, your net profit, and the buyer's total investment.
Calculation inputs
Enter the contract terms and your out-of-pocket costs.
Results
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Complete the fields and select Calculate to show results here.
About this calculator
This calculator finds the assignment fee and net profit on a real estate wholesale deal, where an investor controls a property under contract and sells that contract to an end buyer for a markup. It also shows the end buyer's total cash investment for context.
How the calculation works
- Assignment fee = assignment price − original contract price
- Net profit = assignment fee − marketing costs
- Buyer's total investment = assignment price + rehab budget
Notes and assumptions
Some markets and title companies restrict assignments or require a double close instead.
Disclose the assignment fee where state law or the purchase contract requires it.
How it works in plain English
A wholesale deal starts with an original contract price, the amount the wholesaler agreed to pay the seller. The wholesaler then assigns that contract to an end buyer at a higher price, and the difference between the two is the gross assignment fee, the wholesaler's markup for finding and controlling the deal.
Subtracting marketing costs, such as advertising or lead generation spent to find the end buyer, from the gross assignment fee gives net profit, a more accurate picture of what the wholesaler actually keeps. Earnest money the wholesaler put down to secure the original contract is tracked separately as capital at risk rather than as an expense, since it is typically returned at closing rather than spent.
The calculator also adds the end buyer's rehab budget, if any, to the assignment price to show the buyer's total investment in the deal, which can be a useful sanity check on whether the deal still works for the buyer after the assignment fee.
The formula
- Assignment fee = assignment price - original contract price
- Net profit = assignment fee - marketing costs
- Buyer's total investment = assignment price + rehab budget
Worked example
A wholesaler puts a property under contract for $120,000 and assigns that contract to an end buyer for $132,000, spending $1,200 on marketing to find the buyer and risking $2,500 in earnest money. The gross assignment fee is $132,000 - $120,000 = $12,000, and after the $1,200 marketing cost, net profit is $10,800.
If the end buyer also budgets $18,000 for rehab, their total investment in the property is $132,000 + $18,000 = $150,000. Against the $2,500 earnest money the wholesaler put at risk, the $10,800 net profit represents a return on risk of well over 400%.
Frequently asked questions
Is earnest money treated as a cost in this calculator?
No, it is tracked separately as capital at risk rather than subtracted from profit, because earnest money is typically returned to the wholesaler at closing under most standard contracts. It only becomes a real loss if the deal falls through in a way that forfeits the deposit.
Are wholesale assignments legal everywhere?
Rules vary by state and sometimes by contract language; some markets restrict assignments or require a double close instead, and some require disclosing the assignment fee to one or both parties. Check state law and the purchase contract before relying on an assignment structure.
What other costs should I consider besides marketing?
This calculator only subtracts marketing costs from the gross fee, but real deals can also involve title or escrow fees, contract preparation costs, or a required double closing, which would need to be added separately to see true net profit.
Does a higher assignment fee always mean a better deal for the end buyer?
Not necessarily. A higher fee raises the buyer's total investment, which can eat into their own profit margin if they plan to renovate and resell or rent the property. Buyers typically evaluate the final price, including the assignment fee, against the property's after-repair value.
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