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Free MAO Calculator

Calculate your Maximum Allowable Offer on any wholesale or fix-and-flip deal. Know your numbers before you make an offer.

Quick Answer: MAO = ARV − Repair Costs − Desired Profit − Holding & Closing Costs. For wholesalers, subtract your assignment fee to find your offer to the seller. The 70% rule is a simpler version: (ARV × 70%) − Repairs.

MAO Calculator

Estimated market value after all repairs

Minimum profit your end buyer (rehabber) needs

Typically 8–12% (agent commissions, closing fees, holding costs)

Your fee as a wholesaler. Set to $0 if you are the end buyer/rehabber.

Understanding Maximum Allowable Offer

MAO is the foundational formula every wholesaler and fix-and-flip investor must master. It works backward from the ARV to determine the most you can pay for a property and still hit your profit targets. Pair it with our ARV calculator and fix and flip calculator for a complete deal analysis.

MAO Formula

MAO = ARV − Repairs − Profit − (ARV × Costs %)

Wholesaler's Offer = MAO − Assignment Fee

MAO vs. 70% Rule

  • 70% Rule: Quick shortcut. MAO = (ARV × 70%) − Repairs. Assumes 30% for profit + costs.
  • Full MAO Formula: More precise. Lets you customize profit goals and actual cost estimates.
  • Use the 70% rule for quick screening; use the full formula before submitting offers.

Frequently Asked Questions

What is MAO in real estate?

MAO (Maximum Allowable Offer) is the highest price a real estate investor or wholesaler can pay for a property and still achieve their profit goals. It is calculated as: ARV − Repair Costs − Desired Profit − Holding/Closing Costs.

How do you calculate MAO?

MAO = ARV − Repair Costs − Desired Profit − (ARV × Holding & Closing Cost %). For wholesalers, also subtract your assignment fee: Wholesaler's Offer to Seller = MAO − Assignment Fee.

What is the difference between MAO and the 70% rule?

The 70% rule is a simplified MAO formula: MAO = (ARV × 70%) − Repair Costs. The full MAO formula is more precise because it accounts for your specific profit requirement and actual holding/closing costs rather than a blanket 30% deduction.

What ARV should I use in the MAO formula?

ARV should be based on recent sold comparables (comps) within the last 6–12 months in the same neighborhood. Use a professional ARV calculator or pull comps from the MLS to get an accurate number before calculating MAO.

What holding costs should I include?

Holding costs include mortgage interest, property taxes, insurance, utilities, and HOA fees during the renovation period. Closing costs include agent commissions (typically 5–6%), title fees, transfer taxes, and settlement fees. Combined, these typically run 8–12% of ARV.

What is a typical wholesale assignment fee?

Wholesale assignment fees typically range from $5,000 to $20,000 per deal. Fees vary by deal size, market, and how much equity is in the transaction. On larger deals (ARV over $400K), fees of $20,000–$50,000 are common.

How accurate is the 70% rule?

The 70% rule is a quick filter but not a precise formula. In high-cost markets, 70% may be too generous. In low-value markets, it may be too restrictive. Always verify with a full MAO calculation using actual repair estimates and market costs.