Acquisition Fee On Cost Calculator

Acquisition fees depend on basis. This calculator compares total cost vs purchase price basis.

Purchase price

Total project cost

Fee %

Basis 1.0=price, 1.2=total

Acquisition fee

$363,000

Fee on price only

$330,000

Fee on total cost

$397,500

How the math works

Fee = price × basis multiplier × rate. Purchase-price basis = 1.0; total cost basis typically 1.15-1.30.

The fee-basis conversation often looks small on paper (50-100 bps) but determines six to seven figures of cost on institutional deals. Push the conversation early in LOI — once signed in operating docs, the basis sticks for the full hold.

How to Use

Enter purchase price.
Enter total project cost (includes closing, reserves).
Enter acquisition fee %.
Choose fee basis.
Read acquisition fee.

Frequently Asked Questions

Fee base matters?

Fee on purchase price: smaller. Fee on total cost (incl. closing + reserves): 5-15% higher fee. Fee on total project cost (heavy renovation + cost basis): 20-40% higher fee. Each basis disclosed in PPM or operating agreement.

Typical ranges?

Standard MF syndication: 1-2% of purchase. Value-add with heavy scope: 2-3% of total project cost. Ground-up development: 3-5% of total cost (plus development fee on construction budget).

LP negotiation?

Push for fee on purchase price only, not total project cost. Exclude closing costs and reserves from base. Cap fee at dollar amount for larger deals. Each reduces fee creep on higher-touch transactions.