# Free online BRRRR calculator

> BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is the dominant strategy for scaling a rental portfolio without running out of capital. This calculator checks whether a deal actually pulls your money back out.

Analyze a Buy-Rehab-Rent-Refinance-Repeat real estate deal. Enter purchase, rehab, ARV, rent, and refi terms to see cash left in deal, cash flow, and cash-on-cash return.

**Interactive version:** https://onlinecalculator.me/finance/brrrr/
**Category:** Finance

## How to use

1. Enter the **purchase price** — what you pay to acquire the property.
2. Enter the **rehab cost** — every dollar of renovation, including a buffer for surprises (10–20 % on top of your bid is standard).
3. Enter the **after-repair value (ARV)** — the appraised value once the rehab is done.
4. Enter **monthly rent** and **monthly operating expenses** (tax, insurance, HOA, maintenance, PM, vacancy).
5. Set **refi LTV %**, **refi rate**, and **refi term**.
6. Read the results: cash left in deal, monthly cash flow, annual cash flow, and cash-on-cash return. The breakdown table below traces every line.

## The BRRRR loop

| Step | What happens |
|---|---|
| Buy | Acquire a distressed property at a discount (cash or short-term loan). |
| Rehab | Renovate to raise the appraised value, ideally more than the rehab cost. |
| Rent | Place a tenant, stabilize the operating numbers. |
| Refinance | Cash-out refi at 70–75 % of ARV. Use the proceeds to repay acquisition. |
| Repeat | Roll the recovered capital into the next deal. |

The goal is a deal where **refi loan ≥ all-in cost** — you pull all your capital out and the property still cash flows. When that happens, cash-on-cash return is infinite because the remaining invested capital is zero.

## Formula

```
all-in cost     = purchase + rehab + holding costs
refi loan       = ARV × (LTV / 100)
cash left       = max(0, all-in − refi loan)
cash out at refi = max(0, refi loan − all-in)

monthly PI      = refi loan × r(1+r)ⁿ / ((1+r)ⁿ − 1)
  where r = refi rate / 12, n = term in months

monthly cash flow = rent − operating expenses − monthly PI
annual cash flow  = monthly cash flow × 12

cash-on-cash      = (annual cash flow / cash left) × 100
                  = ∞ when cash left ≤ 0
```

## Worked example

- Purchase: **$100,000**
- Rehab: **$30,000**
- ARV: **$180,000**
- Rent: **$1,800/mo**
- Monthly expenses: **$400**
- Refi: **75 % LTV, 7 % APR, 30 y**

Step by step:

- All-in cost = 100,000 + 30,000 = **$130,000**
- Refi loan = 180,000 × 0.75 = **$135,000**
- Cash left = max(0, 130,000 − 135,000) = **$0** · Cash out at refi = **$5,000**
- Monthly PI on $135,000 at 7 % / 30 y ≈ **$898**
- Monthly cash flow = 1,800 − 400 − 898 ≈ **$502**
- Annual cash flow = 502 × 12 ≈ **$6,024**
- Cash-on-cash return = **∞** (all capital recovered)
- 1 % rule check: 1,800 / 130,000 = 1.38 % → **passes**

A deal this clean is rare in 2026-priced markets. A more realistic outcome is $20,000–$40,000 stuck in the deal with an 8–12 % cash-on-cash.

## What the calculator does not include

- **Closing costs** on the purchase (2–4 % of price) or the refi (2–5 % of loan). Fold them into `Holding costs` to be conservative.
- **Seasoning period** — most conventional lenders make you wait 6–12 months before a cash-out refi on a newly acquired property.
- **DSCR / lender overlays** — some lenders require the property to cover 1.0× or 1.25× the new mortgage before approving the refi.
- **Tax consequences** — depreciation, capital gains at sale, 1031 exchanges. A CPA who knows real estate pays for themselves.

## Notes

- **ARV accuracy is everything.** If the appraisal comes in 10 % below your estimate, the refi shrinks proportionally and cash-on-cash craters. Pull three recent comps per property before you write the offer.
- **1 % rule is a filter, not a finish line.** A deal that barely passes the 1 % rule with thin operating margins isn't a great BRRRR — you want rent-to-all-in closer to 1.2 % or higher for margin.
- **Rates matter more in refi than purchase.** Each 1 % bump in refi rate takes roughly $90–$100/mo out of cash flow on a $135,000 loan. Shop 3+ lenders.
- Sources: [BiggerPockets BRRRR guide](https://www.biggerpockets.com/brrrr), [Investopedia cash-on-cash return](https://www.investopedia.com/terms/c/cashoncashreturn.asp).

## Frequently asked questions

### What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, renovate it to lift the appraised value, rent it out, do a cash-out refinance at a fraction of the new (higher) value, and recycle the recovered cash into the next deal.

### What is cash left in deal?

The capital still invested after the refinance. If your all-in cost is $130,000 and the cash-out refi is $135,000, the cash left is $0 — you recovered everything (plus $5,000 extra). If all-in is $200,000 and refi is $180,000, $20,000 stays in the deal.

### What is cash-on-cash return?

The annual cash flow divided by the cash still invested, expressed as a percent. A good BRRRR target is 10 %+ cash-on-cash once stabilized. When cash left is zero, the return is technically infinite — the calculator shows ∞.

### What is the 1 % rule?

A quick quality filter used by rental investors — monthly rent should be at least 1 % of all-in cost. A $130,000 all-in with $1,300/month rent just clears it. In expensive metros the 1 % rule is often unattainable; investors relax it to 0.7 % or 0.8 %.

### What LTV should I expect on a cash-out refi?

Fannie Mae conventional loans cap cash-out refis on investment properties at 75 % LTV. Some DSCR and portfolio lenders go to 80 %. Lower LTV lenders (70 %) often have better rates and fewer reserve requirements.

### What does the calculator NOT include?

Closing costs on either the purchase or the refi, appraisal fees, loan points, and tax consequences. Real deals typically lose another 2–4 % to these. Add them to your rehab or holding-cost fields to be conservative.

### How accurate is the ARV?

Everything depends on it. If your appraiser comes in 10 % below your estimate, the refi shrinks proportionally and cash left jumps. Get comps from 3+ recent sales, not your hopes.

## Sources

- [How to Use the BRRRR Method in Real Estate](https://www.chase.com/personal/mortgage/education/buying-a-home/brrrr-method) — JPMorgan Chase
- [Understanding the BRRRR Method](https://www.rocketmortgage.com/learn/brrrr) — Rocket Mortgage

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