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MAO Calculator: Free Maximum Allowable Offer Calculator

MAO = (ARV × 70%) − repairs − assignment fee. The most you can pay for a property and still profit.

The most you can offer on a deal and still make money. Type the After Repair Value, pick the condition, and get your offer range, free, in seconds. No repair line items: the condition sets the estimate.

1After Repair Value

2Condition

That’s it. Two inputs is the whole workflow.

Your offer range will appear here. Standardized math — the same disciplined formula on every deal, every time.

Free calculator using the 70% rule with a repair estimate set by condition. Your first calculation runs without signup.

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What Is MAO in Real Estate?

MAO stands for Maximum Allowable Offer — the highest price a real estate investor can pay for a property and still make a profit after repairs, holding costs, and resale. Wholesalers and flippers use MAO to set a hard ceiling on every offer so the numbers, not emotions, decide the deal.

The MAO Formula

MAO = (ARV × 70%) − Repair Costs − Assignment Fee

ARV (After Repair Value) — what the property will sell for once fully renovated, based on comparable sales. Repair costs — the full renovation budget to get it there. Assignment fee — for wholesalers, the fee you’re collecting, subtracted so your end buyer still gets their margin.

The 70% multiplier leaves roughly 30% of ARV on the table to cover the buyer’s purchase costs, holding costs, selling costs, and profit. That cushion is what makes an offer “safe.”

The calculator above only asks for the ARV — the condition you pick sets the repair estimate as a percentage of ARV, and your assignment fee is a pre-filled assumption you can edit beside the result:

Condition	Typically covers	Repair estimate
Light rehab	Paint, carpet, cosmetics	5% of ARV
Medium rehab	Kitchen, bath, systems	12% of ARV
Heavy rehab	Full gut renovation	20% of ARV

Worked Example

Step	Math	Result
ARV × 70%	$300,000 × 0.70	$210,000
Subtract repairs	$210,000 − $40,000	$170,000
Subtract assignment fee	$170,000 − $15,000	$155,000 MAO

On this deal, $155,000 is the ceiling. Offer above it and someone’s margin — yours or your buyer’s — disappears.

When to Adjust the 70% Rule

The 70% rule is a starting point, not a law. In hot metro markets where buyers accept thinner margins, investors run 75–80%. In slow or rural markets with longer hold times, drop to 65% or lower. The free calculator above runs the standard 70% so every offer starts from the same disciplined baseline.

Beyond the 70% Rule: What the Full Product Does

A percentage rule is a stand-in for information you don’t have yet. The full MyMAO product replaces the assumptions with data for the actual property:

As-is and flip comps, pulled for the address

Not a percentage guess — real comparable sales, both as-is and renovated, for the property you’re offering on.

AI-supported ARV verification

The comp-based ARV is cross-checked against independent valuation data, so one inflated comp doesn’t drag your offer into overpaying.

Offer math tuned to condition and market

The multiplier adjusts to the property’s condition and how your market actually runs — instead of a flat 70% everywhere.

A rental exit that can raise your MAO

When the rental income supports a buy-and-hold exit, MyMAO shows the higher offer that strategy justifies — offers sellers accept more often, without giving up your margin.

The result is an offer you can defend to a seller, a buyer, or a lender — not just a number a calculator spit out.

MAO Frequently Asked Questions

What does MAO stand for in real estate?

MAO stands for Maximum Allowable Offer — the highest price an investor can pay for a property and still profit after repairs and resale. It’s the core number in wholesaling and house flipping offer math.

How do you calculate MAO?

Multiply the property’s After Repair Value (ARV) by 70%, then subtract estimated repair costs. Wholesalers also subtract their assignment fee. Example: $300,000 ARV × 0.70 = $210,000, minus $40,000 repairs and a $15,000 fee = a $155,000 maximum offer.

What is the 70% rule?

The 70% rule says investors should pay no more than 70% of a property’s After Repair Value minus repair costs. The remaining 30% covers the end buyer’s purchase costs, holding costs, selling costs, and profit margin.

Is the 70% rule the same in every market?

No. 70% is the standard baseline, but investors in hot, competitive markets often run 75–80%, while slow or rural markets call for 65% or lower. The right percentage depends on how fast properties move and what margins end buyers in your market accept.

What’s the difference between MAO and ARV?

ARV (After Repair Value) is what a property will be worth after renovation — an estimate of future sale price. MAO (Maximum Allowable Offer) is what you can pay for it today. ARV is an input; MAO is the answer.

Learn the math

How to Calculate MAO (Maximum Allowable Offer): the formula term by term, with a worked $300,000 example.
The 70% Rule in Real Estate, Explained: where the rule comes from and when to use 65% or 80% instead.

Stop guessing. Standardize your offers.

MyMAO runs this math with localized comps, real repair costs, and net-profit projections — so every offer you send is defensible.

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