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Also known as the Maximum Allowable Offer (MAO) — the most you should pay for a property to hit your profit goals.
Six simple steps to determine your maximum allowable offer.
Input the after-repair value (ARV) — the estimated sale price after renovation.
Estimate your total rehab budget including materials, labor, and permits.
Calculate carrying costs: loan interest, utilities, taxes, and insurance during the flip.
Include commissions (5-6%), closing costs, and transfer taxes.
Enter your desired profit margin — typically 15-25% of ARV.
The calculator instantly shows your maximum allowable offer (MAO) — the most you should pay for the property.
A max purchase price calculator helps house flippers determine the maximum amount they should pay for a property to achieve their target profit. It uses the formula: Max Purchase = ARV − Rehab − Holding − Selling − Target Profit. FlipScale Pro's calculator automates this instantly.
To calculate the maximum purchase price for a house flip, start with the After Repair Value (ARV), then subtract rehab costs, holding costs (loan interest, utilities, taxes), selling costs (commissions, closing), and your target profit. The result is your maximum allowable offer (MAO).
The 70% rule is a common house flipping guideline: Maximum Allowable Offer = ARV × 70% − Rehab Costs. This means you should pay no more than 70% of ARV minus your rehab budget. FlipScale Pro's calculator goes further by also factoring in your actual holding costs, selling costs, and target profit.
Holding costs for a house flip include: hard money or private loan interest, property taxes, insurance, utilities (electricity, water, gas), HOA fees, and any maintenance during the flip period. FlipScale Pro lets you track all of these in one place.