Whether you’re a wholesaler, fix-and-flip investor, or long-term buy-and-hold buyer, knowing your After Repair Value (ARV) and Maximum Allowable Offer (MAO) before making an offer is the single most important step in protecting your profit. Use the free ARV and MAO calculator above to run your numbers instantly — no sign-up required.

What Is ARV (After Repair Value)?

ARV is the estimated market value of a property after it has been fully renovated. It’s the foundation of every real estate investment analysis. To calculate ARV accurately, you need to pull comparable sales (comps) from similar properties in the same area that sold recently in similar condition.

ARV Formula: ARV = Purchase Price + Value Added by Renovations

Accurate ARV calculations prevent overpaying and ensure your deal has enough margin to cover rehab costs, holding costs, closing costs, and profit.

What Is MAO (Maximum Allowable Offer)?

The Maximum Allowable Offer (MAO) is the most you should pay for a property to still make a profit after all expenses. It’s calculated using the 70% Rule, the industry standard used by wholesalers and flippers nationwide.

MAO Formula: MAO = (ARV × 70%) − Estimated Repair Costs

The 70% rule leaves a 30% buffer to cover your profit margin, holding costs, agent commissions, closing costs, and unexpected expenses. In competitive markets, savvy investors sometimes use 75%, while distressed or slower markets may require 60–65%.

How to Use the ARV & MAO Calculator

Our free calculator above walks you through the key inputs step by step. Enter your estimated ARV, rehab costs, desired profit, and holding costs to instantly calculate your maximum offer price. This tool is ideal for wholesalers sending offers, flippers underwriting deals, and agents representing investor clients.

Free Real Estate Investment Calculators

The ARV and MAO calculator is just the beginning. The Real Estate Investor Toolkit offers a complete suite of free, professional-grade calculators built specifically for investors. No sign-up required, no paywalls — 100% free to use.

• ARV & MAO Calculator — Calculate After Repair Value and Maximum Allowable Offer using verified comps and the 70% rule. The go-to tool for wholesalers and flippers before making any offer.
• Rehab Cost Calculator — Estimate renovation costs per square foot based on the scope of work. Covers light cosmetic, medium (kitchen/bath), and heavy gut rehabs with regional cost data.
• Rental Property Calculator — Analyze cash flow, cap rate, cash-on-cash return, and ROI for buy-and-hold rental investments. Know your numbers before you close.
• Financing Calculator — Model hard money loans, private lending, and traditional financing. Understand payment drag, leverage, refinance timing, and total financing cost impact on your deal.
• BRRRR Calculator — Analyze the full Buy, Rehab, Rent, Refinance, Repeat cycle. Find out how much equity you can pull out and whether your BRRRR deal truly works.
• Comps Calculator — Find and analyze comparable sales in your target area to accurately determine ARV. Real comps = accurate offers = profitable deals.

The 70% Rule Explained

The 70% rule is a fundamental shortcut used by experienced real estate investors to quickly filter deals. It states that an investor should pay no more than 70% of a property’s ARV minus the estimated repair costs. This rule exists to ensure a sufficient profit buffer even when unexpected costs arise.

For example: If a property has an ARV of $200,000 and needs $30,000 in repairs, the MAO would be: ($200,000 × 0.70) − $30,000 = $110,000.

Why Accurate Rehab Estimates Matter

One of the most common mistakes new investors make is underestimating repair costs. Light cosmetic renovations typically run $15–$25 per square foot. Medium rehabs involving kitchens, bathrooms, and flooring range from $30–$50 per square foot. Full gut rehabs or structural work can exceed $60–$100 per square foot. Always build in a 10–20% contingency buffer.

Use the Rehab Cost Calculator to get region-specific estimates before locking in your offer price.

ARV Calculator Tips for Wholesalers

For wholesalers, your MAO must also account for your assignment fee. If you want to make $10,000 on a wholesale deal, subtract that from your MAO before presenting your offer to the seller. This ensures your end buyer still has room to profit at the price they’re paying.

Strong wholesalers run every deal through an ARV calculator and MAO calculator before making first contact with a seller. It saves time, eliminates low-quality leads, and builds your reputation as a serious, data-driven buyer.