MAO Calculator
Calculate the maximum allowable offer on a distressed property from ARV, repair costs, and the 70% rule.
Wholesale MAO Calculator
Find your Maximum Allowable Offer instantly
What the home is worth FULLY renovated
Pad on the repair figure (overruns). Leave 0 to use repairs as-is.
Extra deduction on top of the % rule. Leave 0 for the classic formula — the 30% buffer at 70% already aims to cover closing, holding, and profit.
The 70% Rule is a screening rule of thumb, not a valuation. Investors often buy at 70% of ARV minus repairs. That 30% margin is meant to cover closing costs, holding costs, and profit — enter closing % above only if you want it itemized.
Pro Tip: In hot markets, you may need to use the 75% or 80% rule to get contracts accepted, but this reduces the buyer's profit margin. Planning estimate — not an appraisal or an offer you must make.
What is an MAO calculator?
An MAO calculator is a tool that computes a Maximum Allowable Offer from After Repair Value, repair costs, and the 70% rule, with an optional wholesale fee. Enter ARV, repairs, multiplier, and fee — this page does not make an offer or pull comps.
How to Use the MAO Calculator
- Enter the After Repair Value (ARV). Input your estimated market value of the property after renovations, based on comparable sold properties (comps) in the same neighborhood. ARV is the most important input — an inaccurate ARV directly misstates your MAO.
- Enter your repair estimate. Input your total rehab cost estimate to bring the property to the condition used to determine the ARV.
- Set your multiplier. The default is 70% — the industry standard. Adjust lower for conservative markets or uncertain repairs, or higher in competitive markets with strong ARV confidence.
- Enter your wholesale fee (if applicable). If wholesaling, enter your assignment fee. The calculator shows the contract price to present to an end buyer after deducting your fee.
- Review your MAO. The result is the maximum offer price that leaves room for repair costs, holding costs, and a minimum profit margin.
For example, if a property has an ARV of $200,000, needs $30,000 in repairs, and you want a $10,000 wholesale fee: MAO = ($200,000 × 0.70) − $30,000 − $10,000 = $100,000. You should offer no more than $100,000 to leave room for profit.
The 70% rule is widely used in real estate wholesaling as a conservative margin guideline, popularized by BiggerPockets and adopted as standard practice among fix-and-flip investors. Learn more about the 70% Rule on BiggerPockets.
Key Variables Explained
- ARV (After Repair Value): The estimated market value of the property after full renovation. Find this from recently sold comps in the same neighborhood — not automated estimates.
- Repair Estimate: The cost to bring the property to the condition reflected in the ARV. For wholesalers, a rough per-square-foot estimate is common for quick screening.
- Wholesale Fee: Your profit as the wholesaler. It is subtracted from the MAO to calculate the contract price you assign to the end buyer.
When to Adjust the 70% Multiplier
While 70% is the industry standard for most house flippers, it is not fixed. In highly competitive markets, investors sometimes pay 75–80% of ARV minus repairs when they have very accurate ARV data and lower overhead. In slower markets with higher carrying costs or uncertain repair budgets, dropping to 65% provides more safety margin.
Who Is This For?
- House flippers who need to quickly screen off-market deals, foreclosures, and wholesaler leads to determine whether they are worth a full analysis.
- Wholesalers calculating the assignable contract price — the number they can show an end buyer while still covering their own assignment fee and leaving the buyer a profitable deal.
- Real estate investors learning deal analysis who want to understand how the 70% rule works with actual numbers before committing to a property.
Key Benefits
- Privacy. Tool inputs stay in the browser.
- Free to use now. No account, no paywall. Ads are not live yet.
- No account needed. Works instantly — screen as many deals as you need.
- Adjustable multiplier. The default 70% is right for most markets, but you can adjust it to match your specific market conditions, holding cost assumptions, and target return.
After calculating your MAO, use the BRRRR Calculator to model the full buy-rehab-rent-refinance-repeat cycle. For full rental cash flow analysis, try the Investment Property Calculator.
Pro Tip for New Wholesalers
Always overestimate repair costs by 10-15% when using this formula. Deals frequently fall apart at the closing table because the end buyer discovers the repairs are more expensive than the wholesaler initially quoted — and they back out of the contract.
Frequently Asked Questions
What is MAO in real estate? ▼
MAO stands for Maximum Allowable Offer — the highest price an investor can pay for a distressed property while still meeting their minimum profit requirement. The standard formula is ARV × 70% minus repair costs. The 70% multiplier leaves roughly 10% of ARV for holding costs and 20% for profit margin. Wholesalers subtract an additional assignment fee before presenting the contract price to an end buyer.
Is this calculator free? ▼
Yes. This MAO Calculator is free to use now — ads are not live yet — with no account required. Tool inputs stay in your browser. The site uses aggregate Google Analytics.
What is the 70% rule in real estate? ▼
The 70% rule is a quick screening heuristic: pay no more than 70% of a property's After Repair Value (ARV) minus repair costs. The 30% buffer is meant to cover holding costs (financing, taxes, insurance, utilities during the flip — roughly 10% of ARV) and leave a minimum profit margin of around 20% of ARV. It is a fast filter to determine if a deal is worth a full analysis, not a precise valuation method.
How accurate is the MAO formula? ▼
The MAO formula is a deal-screening tool, not a precise valuation. The 70% multiplier assumes roughly 10% holding costs and a 20% profit margin — assumptions that may not hold in every market. In slow markets with higher carrying costs, investors drop to 65%. In highly competitive markets with lower overhead, some stretch to 75-80%. The formula's value is speed: it tells you in seconds whether a deal is worth a deeper look.
What is ARV and how do I find it? ▼
ARV is After Repair Value — the estimated market value of the property once renovations are complete. You find it by pulling comparable recently sold properties (comps) in the same neighborhood with similar square footage, bedroom count, and condition after renovation. The most reliable sources are a local real estate agent or licensed appraiser. Automated estimates from Zillow or Redfin are too imprecise for deal analysis — an inaccurate ARV directly misstates your MAO.
Can I adjust the multiplier in this calculator? ▼
Yes. The calculator lets you adjust the multiplier below 70% for more conservative deals — for example 65% when repair estimates are uncertain — or above 70% in competitive markets where you have strong ARV confidence and lower holding costs. Adjusting the multiplier is how experienced investors adapt the formula to their specific market and return targets.
This tool is provided for informational and educational purposes only. Results are not a substitute for professional advice.
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