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Deal Tools

Echo Calculator

Does the spread cover the Echo? Run both legs and know in thirty seconds.

Does the spread cover the Echo? Run both legs of the deal.
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Spread covers the Echo
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Estimates only. Exact figures arrive with your written terms, typically the same day.

What this calculator tells you

Echo is short-term funding for the end buyer's down payment on the back half of a double close - repaid out of the deal's spread on the same settlement statement. This calculator runs the one check that decides every Echo: is the spread between the A-B price and the B-C price big enough to cover the funding plus the fee? If it is, you'll see what's left for the wholesaler. If it isn't, you'll see exactly how short it is - and the usual fix is raising the B-C price, appraisal permitting.

The B-C price has to be supported by the appraisal - that's what sizes the primary loan and creates the spread in the first place.

How to use it

  • Enter both legs: what the wholesaler is paying (A-B) and what the end buyer is paying (B-C).
  • Set the primary lender's percentage of the B-C price - the loan amount shows beside it.
  • The fee is a pre-filled estimate with a minimum floor - editable like everything else.
  • Slate result: the spread covers the funding. Orange: it comes up short, and by how much.

New to the structure? Read the Echo Method deep dive or ask in the community. When the spread covers it, hit Submit - the funding request pre-fills the funded amount.

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