MAO Calculator — Maximum Allowable Offer

Calculate the most you can offer on a wholesale or flip deal and still protect your profit. Enter the ARV, repairs, and your fee — get your Maximum Allowable Offer instantly, free.

Your Maximum Allowable Offer will appear here. Standardized math — the same formula on every deal, every time.

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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

Three inputs drive the formula:

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."

Worked Example

StepMathResult
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 calculator above lets you set the percentage per deal — the discipline is in picking it before you fall in love with the property.

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.
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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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$10 for your first month, then $29/month. Cancel anytime before renewal.