How to read this result
In the default example, gross assignment spread is $15,000.00. Results describe this input scenario; they are not a recommendation.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Subtract contracted purchase price from the end buyer price to find the gross assignment spread. Deduct closing, marketing and other costs to estimate net wholesale profit.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Contracted purchase price (USD)
- Price under contract. Minimum: 0.
- Expected end-buyer price (USD)
- Expected assignment/end-buyer price. Minimum: 0.
- Closing/transaction costs (USD)
- User-entered transaction costs. Minimum: 0.
- Marketing costs (USD)
- Lead generation/marketing costs. Minimum: 0.
- Other costs (USD)
- Other user-entered costs. Minimum: 0.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Contracted purchase price | $180,000.00 |
| Expected end-buyer price | $195,000.00 |
| Closing/transaction costs | $2,000.00 |
| Marketing costs | $1,000.00 |
| Other costs | $0.00 |
| Item | Default scenario |
|---|---|
| Gross assignment spread | $15,000.00 |
| Net wholesale profit | $12,000.00 |
Assumptions and limitations
Wholesale real-estate legality and licensing rules vary by jurisdiction; calculator is numerical only and does not provide legal advice.
Results describe this input scenario; they are not a recommendation.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
A gross assignment spread is not take-home profit. The calculator does not determine whether a proposed assignment or transaction structure is legally permitted.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- Appraisal Institute — Basic Formulas — Income CapitalizationIncome/cap-rate/value relationships, gross income multiplier and debt-coverage formula references.
Frequently asked questions
Is this the same as a double-closing profit model?
The tool models a simple price spread less entered costs. A double closing may create additional funding, closing and holding costs that you must account for separately.
Why can wholesale profit be negative?
The spread can be smaller than transaction and marketing costs, or the buyer price can be lower than the contracted purchase price.