Free real estate investing tool
BRRRR Calculator
Use this free BRRRR calculator to estimate your total project cost, cash required, refinance proceeds, capital left in the deal, monthly cash flow, cash-on-cash return, loan-to-cost ratio, loan-to-value ratio, and debt service coverage ratio.
Use this calculator for a disciplined first pass—not as a substitute for full underwriting. Enter conservative assumptions, test a weaker appraisal and lower rent, and confirm actual loan terms with prospective lenders before you make an offer.
Analyze Your BRRRR Deal
Change any assumption. Results update automatically.
Downside testing
BRRRR Sensitivity Table
A BRRRR deal should not depend on one appraisal or one rent estimate. Use the table below to see how changes in ARV and rent affect the result.
Negative capital values indicate refinance proceeds exceeding your initial cash contribution after payoff and costs.
| Rent \ ARV | −10% | −5% | Base | +5% | +10% |
|---|
The sensitivity table holds all other assumptions constant. Real-world changes in value, rent, expenses, interest rates, lender requirements, and project timing may occur together.
Calculation workflow
How to Use the BRRRR Calculator
Start with conservative numbers that you can support. You can always test an optimistic case later, but your initial decision should not depend on best-case assumptions.
Enter the entire project cost
Include the purchase price, closing costs, rehab budget, financing expenses, holding costs, permits, utilities, and other costs required to reach stabilization.
Model the refinance
Enter a supportable ARV, expected LTV limit, refinance costs, rate, amortization term, and the lender’s likely minimum DSCR.
Estimate rental operations
Use realistic rent, vacancy, and operating expenses. Do not omit maintenance, capital reserves, management, insurance, or property taxes.
Review the binding constraint
The estimated refinance loan is limited by the lower of the property’s LTV capacity and its DSCR capacity. This prevents an inflated refinance estimate.
Check capital left in the deal
Focus on net proceeds after the short-term loan payoff, refinance costs, and required escrows—not merely the gross refinance amount.
Stress-test the assumptions
Use the sensitivity table to evaluate a lower appraisal and lower rent. A project that only works in the base case has little margin for error.
Key calculations
What the BRRRR Calculator Results Mean
Total Project Cost
The purchase price plus acquisition costs, rehabilitation, holding costs, and financing expenses. This is your estimated all-in basis before the refinance.
Initial Cash Required
Total project cost minus your initial acquisition and rehab loan. This estimate does not include separate reserves you may choose or be required to maintain.
Loan-to-Cost
Your initial loan divided by the total project cost. LTC measures how much of the acquisition and renovation is funded by debt.
Loan-to-Value
The refinance loan divided by the after-repair value. The calculator will not exceed the maximum LTV assumption you enter.
Net Operating Income
Effective rental income after vacancy and operating expenses, but before loan payments. NOI is used to estimate the property’s debt-service capacity.
Debt Service Coverage Ratio
NOI divided by principal and interest payments. A higher DSCR indicates more income available to cover the modeled debt service.
Refinance Proceeds
The estimated new loan amount. The cash returned to you is lower because the existing loan, refinance costs, and escrows must be paid first.
Capital Left in the Deal
Your original cash contribution plus any cash required at refinance, minus cash returned to you. This is the denominator used for the post-refinance cash-on-cash estimate.
Monthly Cash Flow
Monthly NOI minus modeled principal and interest. Income taxes and extraordinary expenses are not included.
Cash-on-Cash Return
Annual cash flow divided by capital left in the deal. When no capital remains, the calculator reports the result as not applicable rather than displaying a misleading infinite return.
Important: A calculator can make a weak assumption look precise. Your ARV should be supported by relevant sales, your rent by relevant leased properties, your rehab budget by a written scope and contractor input, and your refinance terms by actual lender discussions.
Worked scenario
BRRRR Calculator Example
The default values illustrate a property purchased for $145,000 with a $40,000 renovation and a $250,000 projected after-repair value.
| Purchase price | $145,000 |
|---|---|
| Purchase closing costs | $5,000 |
| Rehab budget | $40,000 |
| Holding and financing costs | $10,000 |
| Total project cost | $200,000 |
| Initial loan payoff | $130,000 |
| Initial investor cash | $70,000 |
| Projected ARV | $250,000 |
| Estimated monthly rent | $2,200 |
The gross refinance loan is not your cash returned. You must first subtract the short-term loan payoff, lender fees, closing costs, and required escrows. This calculator makes that distinction explicitly.
Underwriting discipline
Common BRRRR Calculator Mistakes
- Using an unsupported ARV. Renovation cost does not determine market value.
- Leaving out holding costs. Interest, insurance, taxes, utilities, permits, and delays can materially change your basis.
- Confusing gross loan proceeds with cash returned. Existing debt and refinance costs must be paid first.
- Ignoring the DSCR limit. A property may support less debt than the LTV calculation suggests.
- Entering gross rent as NOI. Vacancy and operating expenses must be deducted before debt service.
- Omitting management or capital reserves. Self-management and deferred repairs are not free.
- Assuming all capital must be recovered. A deal may still be viable with capital remaining, provided the return and risk justify it.
- Relying on a single scenario. Always test lower value, lower rent, higher expenses, and a slower timeline.
Advanced underwriting option
Need More Than a First-Pass Calculator?
Use this free calculator for a quick first pass. For deeper deal analysis, repair budgets, lender presentations, and investment reports, Rehab Valuator may be a better fit.
Affiliate disclosure: BRRRRandMore.com may receive compensation if you purchase through this link, at no additional cost to you.
Frequently asked questions
BRRRR Calculator FAQ
What does this BRRRR calculator include?
It estimates total project cost, initial cash required, loan-to-cost, LTV-limited and DSCR-limited refinance amounts, net operating income, refinance proceeds, cash returned, capital left in the deal, cash flow, cash-on-cash return, equity, and sensitivity to changes in ARV and rent.
Why is the refinance loan lower than ARV multiplied by LTV?
The property’s rental income may not support the full LTV-based loan at the modeled rate, term, and minimum DSCR. The calculator uses the lower of the LTV limit and the DSCR limit.
Should operating expenses include the mortgage payment?
No. Enter operating expenses before debt service. The calculator separately estimates principal and interest for the refinance loan.
Why does cash-on-cash return show “N/A”?
If no capital remains in the deal after refinancing, annual cash flow divided by remaining capital would be undefined or misleading. The calculator therefore reports cash-on-cash return as not applicable.
Does the calculator include taxes on income or depreciation?
No. It is a property-level first-pass model. It does not calculate income taxes, depreciation, cost segregation, passive-loss limitations, or your individual tax consequences.
Can I rely on this estimate when applying for a loan?
No. Lenders may use different qualifying rents, expense ratios, DSCR formulas, appraisal rules, interest calculations, reserve requirements, and seasoning policies. Confirm the actual methodology with prospective lenders.
Educational disclaimer: This calculator provides estimates for general educational purposes. It is not financial, lending, legal, tax, appraisal, construction, or investment advice. Results depend entirely on the assumptions entered and may differ materially from actual costs, value, financing, income, and returns.