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Calculate your Maximum Allowable Offer in seconds using the 70% rule — or your own custom assumptions.
Enter your numbers to see your Maximum Allowable Offer update instantly.
Use the LeadExchange MAO Calculator to quickly estimate the highest price you can pay for a property while still hitting your rehab budget, holding costs and target profit.
MAO stands for Maximum Allowable Offer. It represents the highest purchase price an investor is willing to pay for a property based on the assumptions used in the analysis — the property’s after-repair value, the estimated repair budget, transaction costs and the profit the investor wants to protect.
The percentage most investors start with is 70%, commonly known as the 70% rule, but the right number depends on your market, financing structure, property condition and how quickly you plan to exit the deal.
| ARV | $200,000 |
| 70% of ARV | $140,000 |
| Estimated Rehab | −$40,000 |
| Closing Costs | −$5,000 |
| Holding / Financing Costs | −$5,000 |
| Desired Profit | −$15,000 |
| Maximum Allowable Offer | $75,000 |
MAO stands for Maximum Allowable Offer, the highest price an investor estimates they can pay for a property while still meeting their target deal economics.
MAO = (ARV × your chosen percentage) minus estimated repairs, minus closing costs, minus holding or financing costs, minus your desired profit.
No. 70% is a common starting point, but the right percentage depends on your market, financing, property condition and exit strategy. This calculator lets you choose 65%, 70%, 75%, 80% or enter a custom percentage.
Not necessarily. MAO is a ceiling based on your assumptions, not a recommended offer. Many investors offer below MAO to leave negotiating room.