MAO calculator
Work out the maximum allowable offer on a property, plus the expected profit and return on the cash you put in. Nothing is stored and no sign-up is needed.
Updated September 17, 2026
What the property sells for once renovated.
Scope of work, contingency included.
Percent of ARV you require as profit.
Title, escrow, lender points as percent of ARV.
Commissions and concessions as percent of ARV.
Taxes, insurance, utilities and interest for the hold period.
Set to 0 if you are buying and renovating yourself.
Maximum allowable offer
$182,200
56.9% of ARV
| Required profit | $48,000 |
|---|---|
| Closing costs | $9,600 |
| Sell-side costs | $19,200 |
| Cash in deal | $242,800 |
| Expected profit | $58,000 |
| Return on cash (ROI) | 23.9% |
Estimates only. Verify ARV with local comparable sales and repairs with a contractor bid before making an offer.
The formula
MAO = ARV − repairs − required profit − buy-side closing costs − sell-side costs − holding costs − assignment fee. Every term above is an input you control, which is why two investors looking at the same house can arrive at different offers and both be right.
Where deals go wrong
- ARV set from listings, not sales. Use closed comparable sales in the same submarket and condition tier.
- Repairs guessed from photos. Add a contingency until you have a contractor walkthrough.
- Holding costs ignored. Taxes, insurance, utilities and interest run for the whole hold, not just the renovation.
- Margin fixed regardless of risk. Longer hold, heavier scope and thinner comps all justify a higher required margin.
Frequently asked questions
What is the maximum allowable offer (MAO)?
MAO is the highest price you can pay for a property and still hit your required profit after repairs, closing costs, holding costs, sell-side costs and any assignment fee.
How is MAO calculated?
MAO = ARV − repairs − required profit − buy-side closing costs − sell-side costs − holding costs − assignment fee. The required profit is usually expressed as a percentage of ARV.
Is the 70% rule the same as MAO?
No. The 70% rule (70% of ARV minus repairs) is a shortcut that assumes fixed cost and margin levels. A full MAO calculation prices your actual closing, holding and selling costs, so it is more accurate on low-margin or high-cost deals.
What ROI should a flip target?
Most investors underwrite to a return on cash in the deal rather than a fixed number, and raise the required margin as repair scope, hold time and market uncertainty increase.
Underwrite every lead, not just the ones you have time for
This calculator prices one property at a time. Qualified Leads AI's acquisition workflow is designed to combine property-specific underwriting with seller motivation scoring and AI lead qualification, with separate verified facts, readiness gates, and human approval for any contract package. Unattended end-to-end acquisition is not yet verified. See pricing.