How it works
BRRRR links purchase, rehabilitation, renting and refinancing in one cash model. Project basis is the cost of the property project; actual invested cash can differ when acquisition or renovations were financed.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
An all-cash $223,000 project refinanced at 75% of $280,000 gives a $210,000 loan. After $5,000 refi costs, $205,000 is returned and $18,000 remains. With $20,780 annual NOI and a 6.5%, 30-year loan, monthly P&I is about $1,327.34 and annual cash flow about $4,851.89.
Calculation method
Net refinance proceeds subtract all existing debt and liens as well as closing costs. When payoff is entered, supply actual initial cash explicitly. Otherwise the model assumes the full project basis was funded in cash.
Interpretation
Cash left at zero or below makes the cash-on-cash denominator unsuitable. The tool shows any excess cash-out separately and leaves the ratio unavailable. Post-refinance NOI, debt service and cash flow remain visible.
Limitations
All rents, values, vacancy, expenses and financing terms are your assumptions. Figures exclude income tax and appreciation. Inputs stay in your browser. These calculations do not predict loan approval or investment outcomes.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- CFPB — How lenders calculate mortgage paymentsLoan principal-and-interest context; property operating expenses and underwriting assumptions are separate.
Frequently asked questions
Is cash recovered at refinance the same as profit?
No. Refinance proceeds are borrowing. Cash recovery changes capital left in the property while the new debt also affects future cash flow.
What is a worked example for BRRRR?
An all-cash $223,000 project refinanced at 75% of $280,000 gives a $210,000 loan. After $5,000 refi costs, $205,000 is returned and $18,000 remains. With $20,780 annual NOI and a 6.5%, 30-year loan, monthly P&I is about $1,327.34 and annual cash flow about $4,851.89.