Maximum allowable offer (MAO) calculator

Maximum allowable offer is the most you can pay and still hit your profit target. The common formula is ARV times your percentage, minus rehab. With a $300,000 ARV, 70% and $40,000 of rehab, MAO is $170,000.

  • Free, no signup
  • Official county data
  • Formulas published

Deal assumptions

Enter what you know. Holding costs and financing update the results panel live.

Property

Optional address helps when you save the deal.

Acquisition & exit

Purchase, rehab, and after-repair value drive profit and MAO.

$
$
$

Financing

Costs & targets

Closing costs, holding expenses, and offer rules.

%
%
%
$
$
$
$
$
%

Calculated results

Flip analysis

Updates live. Estimates only — not financial advice.

Enter purchase price, ARV, and rehab budget to see your verdict.

Enter assumptions

Complete the required inputs to save.

What does the maximum allowable offer (mao) calculator do?

MAO helps you set an offer ceiling: typically a percentage of ARV minus rehab. FlipMetric computes MAO alongside full flip profit so you do not optimize offer price in isolation.

Who should use it?

Flippers and buyers who want offer discipline before negotiating.

What you need to enter

  • ARV
  • Rehab budget
  • MAO percentage
  • Full flip cost stack for context

How the calculation works

  1. 1Default MAO = (ARV × MAO%) − rehab.
  2. 2The full flip model still estimates net profit at your purchase price.
  3. 3Adjust MAO% if your strategy differs from 70%.

The same formulas run the full workspace and are listed on the formulas page.

Worked example

Illustrative 70% rule

ARV
$300,000
Rehab
$40,000
MAO @ 70%
$170,000

MAO is a guideline, not a substitute for full P&L analysis.

How to read the results

  • Purchase above MAO may still work if profit targets are met — check the verdict.
  • Purchase far above MAO usually needs a lower price or lower rehab.

Common mistakes and limits

  • Using ARV that is not supported by comps.
  • Ignoring closing and holding costs after setting MAO.

Local repair costs and insurance during vacant rehab affect true all-in basis beyond MAO.

Questions people ask

Not always. MAO is a rule-of-thumb offer cap. FlipMetric also shows net profit at the purchase price you enter.

FlipMetric

Ready to run your own numbers?

Use the calculator above, or open the full workspace. Your first analysis doesn't need an account.

Open the workspaceSee pricing

Estimates only, not financial, legal or tax advice. Read the disclaimer.