What is the 70% rule in real estate?

The 70% rule says you should never pay more than 70% of after-repair value (ARV) minus repair costs. It's the most widely used quick-screen formula in fix-and-flip investing.

Should I always use the 70% rule?

It's a starting point, not a hard ceiling. Hot markets may push you to 75–80%; slow or volatile markets are safer at 60–65%. Our MAO calculator lets you tune the percentage.

What's the difference between MAO and the 70% rule?

The 70% rule is the most common version of MAO. MAO is the broader concept — your maximum allowable offer at any target margin (60%, 70%, 75%, etc.). The 70% rule is just one specific MAO formula.

Is this MAO calculator free?

Yes — completely free with 7 analyses per month per account, no credit card required. Premium plans unlock unlimited deals plus full ARV and rehab reports.

Free MAO Calculator — Maximum Allowable Offer (70% Rule)

Know exactly how much to offer on any investment property. Our free maximum allowable offer calculator combines ARV, rehab costs, holding costs, and your target profit to give you the perfect MAO for fix-and-flip, BRRRR, and wholesale real estate deals.

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Instant MAO Output

Enter ARV and rehab costs and get your maximum allowable offer in one click.

70% Rule Built In

Standard 70% rule applied automatically — adjustable to 65/70/75/80% by market.

Profit Protection

Bakes in your target profit margin and all hidden costs so margins don't get eaten.

Holding & Closing Cost Modeling

Factors holding, financing, closing, and selling costs into the offer math.

Negotiate With Confidence

Generate offer ranges instantly so you can move on deals before competitors.

Multi-Strategy MAO

Calculate MAO for fix & flip, wholesale, BRRRR, and rental acquisition strategies.

How to Calculate MAO (Maximum Allowable Offer) in Real Estate

The maximum allowable offer formula determines the highest price an investor can pay while still hitting target profit. The standard MAO formula:

MAO = (ARV × 70%) − Repair Costs

That 30% spread covers holding costs, closing costs, financing, agent commissions, and your profit. Our free MAO calculator automates the math and lets you adjust the percentage by market and strategy. This is the same 70% rule of real estate used by experienced flippers everywhere.

MAO Formulas by Investment Strategy

Different strategies require different maximum allowable offer formulas:

Fix & Flip: Standard 70% rule with 15–20% target net profit
Wholesale: 65–70% of ARV minus repairs minus your assignment fee
BRRRR: Must allow for cash-out refinance at 70–80% LTV of new ARV
Rental Acquisition: Driven by cash-on-cash and DSCR rather than ARV

Our investor offer calculator adapts to each strategy and shows you the offer range that works.

Frequently Asked Questions

MAO = (ARV × 70%) − Repair Costs. The 30% buffer covers holding costs, closing, financing, agent commissions, and profit.

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Related Calculators

ARV Calculator Rehab Cost Estimator House Flipping Calculator BRRRR Calculator Wholesale Real Estate