MAO (Max Allowable Offer) Calculator
Calculate a Max Allowable Offer for wholesaling using ARV, repair costs, fees, and buyer margin. Built to help you find a defendable offer number and avoid thin deals.
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Results
Tip: Many buyers vary between 65–75% depending on market, financing, and rehab complexity.
When to Use This Calculator
Use this calculator when you're wholesaling properties or making offers on distressed real estate. It helps you calculate the highest price you can offer while still leaving room for repair costs, your assignment fee, and the end buyer's required profit margin.
How It Works
The MAO (Max Allowable Offer) formula starts with After-Repair Value (ARV), applies a percentage discount (typically 65-75%), then subtracts estimated repair costs and other expenses. The result is your maximum contract price — any higher and the deal becomes too thin for the end buyer.
Key Terms
How to Use This MAO Calculator for Wholesaling (Mini Guide)
Use this to back into the highest price you can offer while still leaving room for repairs, your assignment fee, and the end buyer’s margin.
MAO in plain English
MAO (Max Allowable Offer) is the highest contract price that still makes the deal work after repairs, fees, and costs.
If your contract is above MAO, the deal usually breaks unless something else changes (ARV, repairs, fee, etc.).
How to set inputs so your MAO is real
ARV: use comps you can defend — don’t anchor to the highest sale.
Repairs: be conservative; underestimating repairs is the #1 reason deals die or get retraded.
MAO %: many buyers land around 65–75% depending on market and rehab risk.
Other costs: include title/closing, holding utilities, cleanup, etc.
How to use it during negotiation
Start with ARV you can defend, then repairs with a buffer.
Pick a MAO % that matches your buyer (ask them!).
Your output is your walk-away number — don’t negotiate above it unless you’re intentionally reducing your fee.
Quick checks to avoid dead deals
If it only works with optimistic ARV + low repairs + high % — it’s probably thin.
If it works with conservative repairs and a lower % — you likely have a real assignment opportunity.
Try with Local Assumptions
Select a city to pre-fill the calculator with local market defaults.