MAO calculator
Know your maximum offer before you talk to the seller.
Maximum Allowable Offer math is only as good as the repair estimate feeding it. Scopebase builds your MAO from a repair-risk deal brief — not a spreadsheet cell — so you see how the offer ceiling changes as scope uncertainty resolves.
Three offer scenarios, one repair range
Scopebase calculates MAO at three risk thresholds simultaneously. Every scenario uses the same repair range — you see the spread, not just the number that makes the deal look best.
Conservative
ARV × 65% − repairs − costs
Maximum margin of safety. Suitable for high-variance deals, uncertain ARV, or investors with strict return floors.
Standard
ARV × 70% − repairs − costs
The baseline 70% rule. Works for most fix-and-flip deals in stable markets where ARV and scope are reasonably clear.
Aggressive
ARV × 75% − repairs − costs
Thin margin. Appropriate only when you have high conviction on ARV and a low-uncertainty repair scope — usually cosmetic flips.
Why repair cost is the most important MAO input
Most MAO calculators treat repair cost as a static input. The real problem is that repair cost is a range — and how wide that range is determines how much risk you are taking on.
Repair is the variable most likely to be wrong
ARV is anchored by comps. Transaction costs are predictable. But repair estimates miss by 30–50% on deals with uncertain scope. That is the variable that breaks your MAO math.
A single number hides the risk
If your repair estimate is $60K but could be $45K–$80K, your MAO is not one number — it is a range. Buying at the aggressive MAO against a $60K midpoint estimate leaves no room if the actual cost is $80K.
MAO math changes as scope uncertainty resolves
After an inspection report, you have more information than before. After a contractor quote, you have more. Scopebase lets you see how MAO shifts as confidence increases and uncertainty narrows.
What goes into the MAO calculation
Enter your ARV and deal details. Scopebase derives the repair range from your inspection report or notes — no manual line-item entry required.
After Repair Value (ARV)
Enter your comp-based ARV. Scopebase does not estimate ARV.
Repair range (Low / Mid / High)
Derived automatically from your inspection report or deal notes.
Holding and financing costs
Estimated from deal timeline and standard local lending rates.
Transaction costs
Defaults to 8% of ARV (6% selling + 2% closing). Adjustable.
Target margin or return threshold
Select conservative, standard, or aggressive scenario.
Probabilistic MAO
Monte Carlo — P10 / P50 / P90 MAO bands
When ARV is entered, Scopebase runs 10,000 simulated deal outcomes using statistical distributions for each repair line item. Instead of one MAO number, you get a probability curve and a probability-of-profit figure at any given purchase price. This is especially useful for deals with high-variance items like foundation or cast-iron plumbing where the repair range is wide.
See a sample Monte Carlo MAO chartFrequently asked questions
What is a Maximum Allowable Offer (MAO)?
MAO is the highest price an investor can pay for a property while still achieving their target profit margin. It is calculated as ARV × factor − repair costs − transaction costs. The factor varies by risk tolerance: conservative investors use 65%, standard use 70%, aggressive use 75%.
Why does the repair estimate matter so much in MAO math?
Repair cost is the variable most likely to be wrong. ARV is relatively stable once you have good comps. Transaction costs are predictable. But repair estimates routinely miss by 30–50%. A bad repair estimate produces a bad MAO — which means you either overpay or walk from a deal you should have taken.
What is the difference between conservative, standard, and aggressive MAO?
Conservative MAO uses ARV × 65% minus repairs — wide margin of safety. Standard MAO uses ARV × 70%. Aggressive MAO uses ARV × 75% and is appropriate only when you have high conviction on both ARV and repair costs.
What is Monte Carlo MAO?
Monte Carlo MAO runs 10,000 simulated deal outcomes using statistical distributions for each repair line item. Instead of one MAO number, you get a probability curve — P10, P50, P90 — and a probability-of-profit figure at any given purchase price.
How is Scopebase MAO different from a spreadsheet?
Spreadsheets require you to manually input a repair cost. Scopebase derives the repair range from your inspection report or property notes — with per-item confidence levels and risk flags — and feeds that directly into the MAO calculation.
Related tools
Calculate MAO on your next deal.
Upload an inspection report or describe the property. Repair range and MAO scenarios usually arrive in about a minute.
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