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Maximum Offer Calculator
Your maximum offer is not the asking price minus a hopeful discount. It is the price at which the property still delivers your required return and still clears financing.
Results
- Maximum offer
- $671,720
- Ceiling at target cap rate
- $713,000
- Ceiling at target DSCR
- $671,720
- Binding constraint
- Financing (DSCR)
Want the complete analysis?
Valuation, comparables, risk flags, stress tests and your maximum offer — analyzed with AI.
Analyze the property with AIThe formula
Max Offer = min(NOI ÷ Target Cap Rate, Price supportable at Target DSCR)
Whichever constraint binds first sets your ceiling.
Worked example
- NOI is $42,780 and your target cap rate is 6.0% → $713,000.
- At a 1.25 DSCR requirement, 4.9% and 30 years with 20% down, debt supports about $694,000.
- Financing binds first, so the maximum offer is roughly $694,000.
How to read the result
Setting a ceiling before you negotiate is what keeps discipline in a competitive market. The number is arithmetic, not emotion.
If your ceiling is far below asking, the gap is information: either the seller's expectations are stale or your assumptions are conservative. Check both.
Rebuild the ceiling whenever an assumption changes — a higher tax bill or a rate move shifts it immediately.
Frequently asked
Should I ever offer above my maximum?
Only if an assumption genuinely changes, such as verified below-market rent you can legally bring to market. Adjust the inputs, recalculate, and let the model move the ceiling.
Does this account for renovation costs?
Subtract planned capital work from the result to get your maximum purchase price, since that capital competes with the price you pay.
A calculator answers one question. PropertyEdge makes the whole decision.
Run the whole property — NOI, valuation, financing, risks, stress tests, your maximum offer and a BUY / NEGOTIATE / PASS verdict, with every assumption labelled.
- Free to start
- No credit card to start
- Every assumption labelled
- Calculations kept separate from AI interpretation
Ontario benchmarks by city
Local prices, rents, property tax and land transfer tax — the inputs this calculator needs.
- See Toronto benchmarks
- See Hamilton benchmarks
- See Mississauga benchmarks
- See Ottawa benchmarks
- See London benchmarks
- See Kitchener-Waterloo benchmarks
- See Burlington benchmarks
- See Oakville benchmarks
- See Brampton benchmarks
- See Niagara benchmarks
- See Guelph benchmarks
Other calculators
- Cap Rate Calculator
- Cash-on-Cash Return Calculator
- DSCR Calculator
- Rental Property Calculator
- ROI Calculator
- Mortgage Calculator
PropertyEdge provides analysis and estimates for informational purposes only. It is not investment, tax, legal or appraisal advice, and no return or investment outcome is guaranteed. Estimates are modelled from the assumptions shown and must be verified against leases, inspections, tax bills and municipal records before you make an offer.