Cash Offer Calculator

A cash offer looks simple until you ask whose side you are on. Buyers need a competitive offer price from market value, discount, and repair costs. Investors run the 70% rule on after-repair value. Sellers need to compare a fast cash sale against listing with an agent or selling it themselves.

This calculator covers all three: buyer offer, investor maximum allowable offer, and a seller side-by-side of net proceeds.

How to use the Cash Offer Calculator

Buyer offer: enter market value, your negotiation discount, and additional costs like repairs or fees. Investor: enter the after-repair value, repair costs, your fee, and the investor percentage (70% default). Seller compare: enter home value, mortgage balance, commission and closing percentages, repair costs, and the cash-offer percentage to see agent, cash, and FSBO nets side by side.

Formulas

Buyer: Cash Offer = Market Value x (1 – Discount %) – Additional Costs. Investor: Maximum Allowable Offer = (ARV x Investor %) – Repairs – Fee. Seller: Agent Net = Price – Commission – Closing – Repairs – Mortgage; Cash Net = (Value x Cash %) – Mortgage; FSBO Net = (95% of Value) – Costs – Mortgage.

Worked examples

Buyer. Market value $300,000, 15% discount, $8,000 costs: 300,000 x 0.85 – 8,000 = $247,000. Investor. ARV $500,000, $30,000 repairs, no fee, 70%: 500,000 x 0.70 – 30,000 = $320,000. Seller. $250,000 home, $150,000 mortgage, 6% commission, 2% closing, $5,000 repairs, 80% cash offer: agent net = 250,000 – 15,000 – 5,000 – 5,000 – 150,000 = $75,000; cash net = 200,000 – 150,000 = $50,000; FSBO net = 237,500 – 8,875 – 150,000 = $78,625. All verified against the calculator above.

What competitors miss

Cash offer tools pick one side of the table: buyer formulas, investor rules, or seller marketing pages with static comparison tables you cannot edit. This calculator serves all three with live math, and the seller comparison uses your commission, closing, and offer percentages instead of hardcoded assumptions. The investor mode also exposes the 70% rule for what it is, an adjustable starting filter, since rigid rules lose deals to buyers with thinner margins.

Frequently asked questions

How much below market value is a fair cash offer?
Cash buyers typically seek 5 to 15% below market for retail purchases; investors often target 25 to 35% below after-repair value. It depends on condition, urgency, and local competition.

What is the 70% rule in real estate?
An investor guideline: offer no more than 70% of after-repair value minus repairs. It bakes in roughly 30% for profit, holding, and closing costs, but real buyers adjust it.

Should I accept a cash offer on my house?
Compare net proceeds, not headline price. A cash offer at 80% with no fees and a 2-week close can beat a full-price listing once commissions, repairs, holding costs, and fall-through risk are counted. Run the seller comparison above.

Do cash buyers really pay 75 to 85% of market value?
That is the typical range for as-is cash buyers and iBuyers. The discount pays for their speed, certainty, and the repairs they absorb.

What costs should I subtract from a cash offer?
Repairs and renovations, closing and title costs, inspection fees, and any assignment or wholesale fee. List them in additional costs so the offer stays honest.

Is a cash offer always better for sellers?
No. If you can wait months and your home is in good shape, listing with an agent usually nets more. Cash wins on speed, certainty, and zero hassle.