Use this Maximum Allowable Offer (MAO) Calculator to determine the highest price you can pay for an investment property while still protecting your profit margin. Enter the ARV, discount rate, repair costs, and fixed/holding costs to calculate a safe offer price. This helps you avoid overpaying, maintain your risk buffer, and make confident acquisition decisions.
Maximum Allowable Offer (MAO) Calculator
Result: $
Breakdown of the Numbers
- After Repair Value (ARV): $
- Discount Rate:
- Discount Amount: $
- Repair Costs: $
- Fixed / Holding Costs: $
- Maximum Allowable Offer (MAO): $
How to Interpret the Result
Your Maximum Allowable Offer (MAO) represents the highest price you can pay for a property while still meeting your target profit.
It starts with the After Repair Value (ARV), subtracts your required discount (your profit and risk buffer), then subtracts repair costs and fixed/holding costs.
If a seller’s asking price is above your MAO, you either negotiate down or walk away.
MAO protects your margins and prevents overpaying in competitive markets.