BRRRR Calculator
Calculate brrrr from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate brrrr from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
How to use the BRRRR Calculator
- Enter or select purchase price.
- Enter or select rehab costs.
- Enter or select holding + closing costs before refinance.
- Enter or select after repair value (arv).
- Enter or select refinance loan-to-value (%).
- Enter or select monthly rent after refinance.
- Enter or select monthly operating expenses (excl. debt service).
- Enter or select refinance mortgage apr (%).
- Enter or select refinance term (years).
- Read the calculated result; change any measurement to compare alternatives.
Formula
total invested=purchase+rehab+holding/closing; refinance loan=ARV×refinance LTV; cash left in the deal=max(0,total invested−refinance loan); monthly cash flow after refinance=rent−operating expenses−new mortgage payment (amortised at the refinance rate/term)
- purchase
- Purchase price
- rehab
- Rehab costs
- holding
- Holding + closing costs before refinance
- arv
- After repair value (ARV)
- ltvPct
- Refinance loan-to-value (%)
- rent
- Monthly rent after refinance
- expenses
- Monthly operating expenses (excl. debt service)
- refiRate
- Refinance mortgage APR (%)
- refiTerm
- Refinance term (years)
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
Worked example
For brrrr calculator, the following measurements illustrate the exact method: Purchase price: 180000; Rehab costs: 55000; Holding + closing costs before refinance: 12000; After repair value (ARV): 320000; Refinance loan-to-value (%): 75; Monthly rent after refinance: 2400; Monthly operating expenses (excl. debt service): 650; Refinance mortgage APR (%): 7; Refinance term (years): 30.
Inputs
- Purchase price180000
- Rehab costs55000
- Holding + closing costs before refinance12000
- After repair value (ARV)320000
- Refinance loan-to-value (%)75
- Monthly rent after refinance2400
- Monthly operating expenses (excl. debt service)650
- Refinance mortgage APR (%)7
- Refinance term (years)30
Result
- Total cash invested before refinance$247,000.00
- Refinance loan amount$240,000.00
- Cash left in the deal$7,000.00
- Monthly mortgage payment after refinance$1,596.73
- Monthly cash flow after refinance$153.27
- Annual cash-on-cash return on cash left (%)26.28
Results explained
- Total cash invested before refinance
- Total cash invested before refinance from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
- Refinance loan amount
- Refinance loan amount from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
- Cash left in the deal
- Cash left in the deal from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
- Monthly mortgage payment after refinance
- Monthly mortgage payment after refinance from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
- Monthly cash flow after refinance
- Monthly cash flow after refinance from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
- Annual cash-on-cash return on cash left (%)
- Annual cash-on-cash return on cash left (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Refinance proceeds first repay any purchase financing; lender seasoning periods, appraisal outcomes and refinance closing costs vary and are only included if you add them to holding/closing costs.
Frequently asked questions
Buy below value, Rehab to raise the value, Rent the property out, Refinance at the new value to recover your cash, then Repeat. This calculator models the refinance and recycle step where the strategy succeeds or fails.
Total cash you put in (purchase, rehab, holding and closing) minus what the refinance loan returns to you. Leaving $7,000 in a deal that cash-flows is usually considered a strong BRRRR outcome; leaving nothing means your capital is fully recycled.
The new loan is sized off the appraised after-repair value, not your costs: at 75% LTV on a $320,000 ARV the loan is $240,000. If the appraisal comes in low, the loan shrinks and more cash stays trapped in the deal.
Yes. The larger refinance loan carries a larger payment, so rent minus expenses minus the new payment can go negative even when the pre-refinance numbers looked fine. The monthly cash-flow output is the check.
A low refinance appraisal, lender seasoning rules that delay the refinance, rehab overruns, and rates rising between purchase and refinance. Any of them leaves more cash in the deal and cuts the return on the cash that stays.