Max Allowable Offer Calculator

How to use this calculator

Enter the after-repair value and your estimated rehab. Set the rule percentage (70% by default) and a wholesale fee if you’re assigning the contract. The calculator returns your max allowable offer instantly and compares it across common rule percentages so you can see how aggressive each offer really is.

What the metrics mean

• Max allowable offer (MAO) — the highest price that still leaves your target margin after rehab and fees.
• Rule percentage — the share of ARV you’re willing to pay — 70% is the classic benchmark.
• Spread to ARV — after-repair value minus your offer; the room your margin lives in.
• Wholesale fee — an assignment fee subtracted from the offer when you plan to wholesale the contract.

Frequently asked questions

What is the 70% rule in real estate?

The 70% rule says an investor should pay no more than 70% of a property’s after-repair value (ARV) minus rehab costs. It builds in roughly a 30% cushion for profit, holding, and selling costs.

How do you calculate maximum allowable offer?

MAO = (ARV × rule percentage) − estimated rehab − any wholesale fee. This calculator lets you set the percentage and instantly compares 60% through 80%.

Should I always use 70%?

No. 70% is a starting screen. Tighter margins or higher-priced homes may justify 75–80%; riskier deals or unknown rehab scope call for 60–65%. Always confirm with a full underwrite.

Is this MAO calculator free?

Yes. Your max offer and the 65/70/75% comparison are free with no login. Enter your email to unlock the full scenario table.

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