Maximum Allowable Offer (MAO) Calculator

The single most important number in wholesaling: the most you can offer and still leave room for your fee and the buyer's profit. Enter three numbers — the calculator applies the 70% rule instantly.

1. After-repair value (ARV) What will the property be worth fixed up? ($)

Base this on sold comparables, not list prices. Three similar sold homes within half a mile is the gold standard.

2. Estimated repair costs Rehab estimate ($)

When in doubt, overestimate. Most beginners underbid repairs by 20–30%.

3. Your assignment fee What you want to make on the deal ($)

Typical wholesale fees run $5,000–$15,000. Your fee comes out of the spread, so it has to fit inside the MAO.

4. Investor discount

70% is the industry standard. Use 65% in uncertain markets, 75% only for light cosmetic rehabs.

Your maximum allowable offer

Estimates, not offers. This calculator applies standard wholesaling math for planning purposes. It is not financial advice, and every deal needs its own due diligence: verify ARV with real comparables, walk the property, and confirm repair costs with a contractor.

How the MAO formula works

MAO = (ARV × 70%) − repairs − your assignment fee. The 70% rule exists because the end buyer — usually a flipper or landlord — needs roughly a 30% margin under the fixed-up value to cover their profit, holding costs, closing costs, and the surprises every rehab hides. Your assignment fee sits on top of the buyer's math, so it gets subtracted before you make the offer. Offer at the MAO and the deal barely works; offer below it and everyone gets paid with room to spare.

4 MAO mistakes that kill deals

Inflating the ARV. Using list prices or the nicest comp on the block instead of honest sold comparables. Three similar sold homes, half a mile, last six months.
Underbidding repairs. Walk the property with a contractor when you can. Add 20% contingency to your own estimate — beginners almost always come in low.
Forgetting the fee. Your assignment fee isn't free money; it comes out of the spread. A deal that "works" before your fee is a deal that doesn't work.
Offering the MAO as the opening bid. The MAO is your ceiling. Open lower — sellers expect negotiation, and the gap is your safety margin.

Your deal, next steps

Got your number? Here's what to do with it — in order:

Run the full workup. The MAO is one number; the wholesale deal analyzer checks it against the asking price, closing costs, and holding costs — and gives you a verdict.
Make the offer in writing. A purchase agreement with an assignment clause protects you. (State-specific contract packs are coming to this hub.)
Automate your follow-up. Most wholesale deals die in the follow-up, not the math. Our AI lead agent and appointment setter keep every seller conversation warm while you hunt the next deal.

MAO questions, answered

What is the maximum allowable offer (MAO) in wholesaling?

The highest price you can pay and still leave room for the end buyer's profit and your assignment fee: (ARV × 70%) minus repairs minus your fee.

What is the 70% rule in real estate?

Pay no more than 70% of after-repair value, minus repair costs. The 30% margin covers profit, holding and closing costs, and surprises. Adjust to 65% in shaky markets or 75% for light cosmetic rehabs.

What is a typical wholesaler assignment fee?

Usually $5,000–$15,000, with $10,000 a common target. It comes out of the deal's spread, so it must fit inside the MAO math above.

Should I offer exactly the MAO?

No — it's your ceiling, not your opening bid. Start below it. If the seller won't come near your MAO, the deal doesn't work; walk away.

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