MAO calculator for wholesale deals
Work out the maximum allowable offer on a property, then subtract your assignment fee to see the most you can offer the seller and still leave room for your cash buyer.
Deal numbers
Not sure of the ARV? Use the ARV calculator first. Most flippers buy at 65% to 75% of ARV minus repairs, depending on the market and price point.
An estimate only. Confirm repairs and ARV with your buyers before you sign.
How the MAO formula works
Your max offer to the seller = MAO − your assignment fee
The percentage covers everything your cash buyer has to pay for besides repairs: buying and selling costs, loan interest, holding costs and their profit. That is why the 70% rule is a starting point, not a law. In expensive markets buyers may pay 75% or more; on small, rough houses they may want 60% to 65%.
A quick example
A house will be worth $250,000 after repairs and needs $40,000 of work. At 70%, the buyer’s MAO is $250,000 × 0.70 − $40,000 = $135,000. With a $10,000 assignment fee, the most you should offer the seller is $125,000. These numbers are illustrative only.
How to get the inputs right
- ARV: use recent sold comps, not list prices. See how to calculate ARV.
- Repairs: estimate room by room and add a buffer. See how to estimate repair costs.
- Percentage: ask your buyers what they pay. Our guide on finding cash buyers covers the questions to ask.
Frequently asked questions
What does MAO stand for?
Maximum allowable offer: the highest price a buyer can pay and still hit their profit target on a flip.
Should I offer exactly my MAO?
No. Start below it so you have room to negotiate, and use it as your walk-away number. Our guide on writing a wholesale offer explains how.
What if the seller wants more than my MAO?
Either walk away, or consider a terms offer such as seller financing or a novation, covered in our creative financing guide.
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