Maximum Allowable Offer Calculator
What is the maximum purchase price under a chosen investor rule?
MAO = (ARV × Rule Percentage) − Rehab Cost
Calculate Max Offer →Quick Screening Inputs
Results update as you change any input.
Change the percentage or pick a preset. There is no single correct value for every deal.
Estimates are for educational purposes only · Not investment advice
Worked Example
$400,000 ARV, 70% rule, $60,000 estimated rehab cost:
MAO = ($400,000 × 70%) − $60,000 = $280,000 − $60,000 = $220,000
Frequently Asked Questions
Is the 70% rule always the right rule to use?
No. It's a simplified heuristic some investors use as a first screening pass. Appropriate percentages vary by market, project scope, financing cost and investor risk tolerance — many experienced flippers use a different number, or none at all, for a given deal.
Why does the Maximum Allowable Offer change so much between 65% and 75%?
A 10-point swing in the rule percentage is a swing of 10% of your ARV — often tens of thousands of dollars. That sensitivity is exactly why the Compare Rules table is shown: it demonstrates how much a "quick rule" can move the answer.
Is MAO the same as an appraisal or an offer I should make?
No. It's a scenario screening number based on the ARV, rehab cost and rule percentage you entered — not an appraisal, and not a recommended or guaranteed offer price.
What should I do after getting a Maximum Allowable Offer number?
Treat it as a quick screen. For a property that clears this bar, running the full Fix-and-Flip Calculator accounts for financing, holding and selling costs the 70% rule doesn't itemize.
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This screening number is generic. For a full picture of a specific property, analyze it with Reaixo.
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Helpful Resources
Educational Use Only: Reaixo provides estimates and scenario calculations for informational and educational purposes. Reaixo is not acting as a real-estate broker, appraiser, lender, contractor, financial advisor, accountant, tax advisor, or investment advisor. ARV, repair costs, financing costs, selling expenses, rents and investment performance can vary materially. The 70% rule is a simplified heuristic and is not appropriate for every property, market, investor, or transaction. Calculator results are not an appraisal, investment recommendation, offer recommendation, or guarantee of profit.