70% rule and MAO calculator
Find your maximum allowable offer. Change the percentage to match your market and exit. Results are estimates.
Last reviewed October 26, 2026 by the Trident team.
How do you calculate MAO?
MAO, or maximum allowable offer, is the most you can pay for a property and still hit your target margin. With the 70% rule, multiply the after repair value by 0.70, subtract the estimated repair cost, and, if you are wholesaling, subtract your assignment fee. Anything above that number squeezes the end buyer's profit.
MAO = (ARV × percentage) − repairs − wholesale feeWhat is an example MAO calculation?
A Hartford, Connecticut two-family has an ARV of $250,000 and needs $40,000 of work. At 70%, the end buyer's maximum is $250,000 × 0.70 − $40,000 = $135,000. A wholesaler who wants a $10,000 fee should contract it for no more than $125,000, which is 50% of ARV.
| Percentage | Buyer's max | Wholesaler MAO |
|---|---|---|
| 65% | $122,500 | $112,500 |
| 70% | $135,000 | $125,000 |
| 75% | $147,500 | $137,500 |
| 80% | $160,000 | $150,000 |
What does the 30% in the 70% rule cover?
The 30% gap between ARV and the buyer's all-in cost is meant to pay for everything other than purchase and repairs: loan interest and points, taxes, insurance and utilities while holding, closing costs on both ends, agent commissions when selling, and the investor's profit. On a long or expensive rehab, 30% may not be enough.
Inside Trident, the Deal Command Center calculates MAO lanes for flip, wholesale, BRRRR, Subject-To, Novation, Lease Option and Traditional from the same deal record. See pricing or start a trial. Related: ARV calculator, wholesale fee calculator, what MAO means.
Frequently asked questions
What is the 70% rule in real estate?
The 70% rule says a flipper should pay no more than 70% of a property's after repair value minus the repair cost. The 30% left over is meant to cover holding costs, closing costs, selling costs and profit. It is a screening rule of thumb, not a guarantee of profit.
Should I always use 70%?
No. Many investors use 75% to 80% on higher-priced houses where 30% would be a very large dollar margin, and 65% or lower on cheap houses or long rehabs where fixed costs eat more of the spread. Set the percentage to match your real costs and the end buyer's rules.
Where does the wholesale fee go in the MAO formula?
If you are wholesaling, subtract your assignment fee after applying the percentage and repairs. That gives the most you can contract the house for while leaving the end buyer their 70% number. The calculator does this when you enter a fee.