About the BRRRR Calculator
This BRRRR calculator models the five steps of the Buy, Rehab, Rent, Refinance, Repeat strategy. Enter what you pay for the property, the purchase closing costs, the rehab budget and holding costs during the work, then the after-repair value (ARV) and the terms of the cash-out refinance. The calculator shows your all-in cost, the new loan, how much of your capital comes back out, and how much stays tied up in the property.
It then runs the rental: rent after vacancy, operating expenses and the new mortgage payment give the monthly cash flow and the cash-on-cash return on the money left in. If the refinance returns everything you invested and the property still cash-flows, the return is effectively infinite — the goal of a textbook BRRRR.
The model assumes the purchase and rehab are paid in cash or with short-term financing that the refinance pays off, so the money left in the deal is all-in cost minus net refinance proceeds. It also flags whether the purchase met the 70% rule. Lenders usually require a seasoning period of several months before a cash-out refinance at the new value.
How to use the brrrr calculator
- 1Enter the purchase price, closing costs, rehab budget and holding costs.
- 2Enter the after-repair value you expect the appraisal to support.
- 3Set the refinance LTV, rate, term and closing costs from a lender quote.
- 4Add the rent, vacancy allowance and monthly operating expenses.
- 5Check the money left in, cash flow and cash-on-cash return — then adjust the offer price.
Formula and method
The all-in cost is everything you spend to acquire and stabilise the property. At the refinance, a new loan is sized at the after-repair value times the lender’s maximum loan-to-value; after refinance closing costs, those proceeds repay your capital or any short-term loan. Whatever is not recovered is the money left in the deal.
Monthly cash flow is rent after vacancy minus operating expenses and the new mortgage payment, calculated with the standard amortization formula. Cash-on-cash return divides annual cash flow by the money left in; when nothing is left in and cash flow is positive, the return is described as infinite. The 70% rule check compares the purchase price with 70% of ARV minus rehab.
- ARV
- After-repair (appraised) value
- LTV
- Maximum loan-to-value on the cash-out refinance
- P&I
- Monthly payment on the refinance loan
Worked examples
$150k purchase, $40k rehab, $250k ARV
You spend $200,500 all-in. A 75% refinance on a $250,000 ARV is $187,500, or $182,500 after refi closing costs, so $18,000 stays in the deal. Rent of $1,900 less 5% vacancy and $400 of expenses, minus a $1,247.44 payment, leaves about $158 a month — $1,891 a year, a 10.5% return on the $18,000 left in.
A textbook BRRRR: all capital returned
All-in cost is $152,000. A 75% refinance on $220,000 is $165,000, or $160,000 after closing costs — $8,000 more than you invested. With nothing left in and positive cash flow of about $280 a month after the $1,097.75 payment, the cash-on-cash return is infinite.
Low appraisal leaves cash stuck
If the property only appraises at $210,000, the refinance is $157,500 and $48,000 stays tied up. The smaller loan raises cash flow to about $357 a month, but the return on the larger amount left in drops to 8.9%.
Frequently asked questions
What is the BRRRR method?+
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a property below market value, renovate it to force appreciation, rent it out, refinance at the higher value to recover your capital, and use that capital for the next deal.
What does money left in the deal mean?+
It is the part of your all-in cost that the refinance does not pay back. The less money left in, the faster you can repeat, and the higher your cash-on-cash return on what remains invested.
What LTV can I get on a cash-out refinance?+
For investment properties, lenders commonly cap cash-out refinances at 70%–80% of appraised value, and DSCR lenders often at 75%. Many require you to own the property for a seasoning period — often six months or more — before lending on the new value.
What is an infinite return in BRRRR?+
If the refinance returns all of the cash you invested and the property still produces positive cash flow, you are earning income with none of your own money in the deal. The cash-on-cash return is then undefined, commonly called infinite.
What are the main risks of BRRRR?+
The biggest risks are rehab overruns, a low appraisal, rising interest rates before the refinance, and rents lower than projected. Any of these can leave more capital stuck in the deal or push cash flow negative after the new loan.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.