The Maximum Allowable Offer (MAO) is the highest price an investor can pay for a property while still meeting their desired profit margin. This calculator helps you quickly determine a safe offer price based on ARV, repair costs, and your target profit.
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.