How to Use This Calculator
- 1
Enter your deal numbers
Input the purchase price, rehab cost, After Repair Value (ARV), refinance LTV percentage, monthly rent, monthly expenses, refinance interest rate, and loan term.
- 2
Review your BRRRR analysis
The calculator displays three result cards (Cash Left in Deal, Monthly Cash Flow, Cash-on-Cash Return), an insights panel with DSCR, cap rate, equity created, capital recovery, and 10-year projections, plus a chart and deal breakdown table.
Example Calculation
A real estate investor evaluates a BRRRR deal in 2026: $100,000 purchase, $30,000 rehab, $180,000 ARV, 75% LTV, $1,500/month rent, $400 expenses, 7% rate, 30-year term.
Purchase Price
100,000
Rehab Cost
30,000
After Repair Value (ARV)
180,000
Refinance LTV
75
Monthly Rent
1,500
Monthly Expenses
400
Refinance Interest Rate
7
Loan Term
30
Results
Cash Left in Deal
$0 (full cash-out)
Monthly Cash Flow
$202
Cash-on-Cash Return
Infinite
Insights card shows $50,000 equity created, 1.
Tips
Use the 70% Rule as a Quick Filter
Before running a full BRRRR analysis, check whether purchase price plus rehab cost stays below 70% of ARV. For example, a $180,000 ARV property should cost no more than $126,000 all-in. Deals that pass this filter in 2026 are more likely to achieve full cash-out on refinance.
Budget 5-10% for Holding Costs
Beyond the purchase and rehab costs, budget for holding costs during renovation -- property taxes, insurance, utilities, and loan interest. On a $130,000 all-in deal, holding costs of $6,500 to $13,000 can significantly affect your actual cash left in the deal after refinance.
Stress-Test Your LTV Assumption
LTV percentages fluctuate with lender policies and market conditions. A 5% drop in LTV on a $250,000 ARV property means $12,500 less in refinance proceeds. Run the calculator at both 70% and 75% LTV to see how sensitive your deal is to appraisal risk.
Target a DSCR Above 1.25 for Lender Approval
Most DSCR lenders in 2026 require a ratio of 1.25 or higher to approve a cash-out refinance on an investment property. If your DSCR falls below this threshold, consider raising rent, reducing expenses, or accepting a lower LTV to improve the ratio before applying.
The BRRRR Strategy Calculator helps real estate investors evaluate Buy, Rehab, Rent, Refinance, Repeat deals by calculating cash recovery, monthly cash flow, and return metrics.
In the 2026 market with elevated interest rates, precise deal analysis is essential -- this tool projects whether your refinance proceeds will recover your invested capital and whether rental income covers the new mortgage payment.
Core BRRRR Formulas and How They Connect
The BRRRR strategy hinges on a chain of calculations where each output feeds the next.
Understanding these formulas helps you identify exactly where a deal succeeds or breaks down.
total invested = purchase price + rehab cost
refinance proceeds = ARV x (refinance LTV / 100)
cash left in deal = total invested - refinance proceeds
monthly NOI = monthly rent - monthly expenses
monthly mortgage = PMT(rate/12, term*12, refinance proceeds)
monthly cash flow = monthly NOI - monthly mortgage
cash-on-cash return = (annual cash flow / cash left in deal) x 100
DSCR = monthly NOI / monthly mortgage
cap rate = (annual NOI / ARV) x 100
The critical insight: your refinance proceeds depend entirely on ARV and LTV, while your cash flow depends on rent minus expenses minus the mortgage on those proceeds.
A deal can achieve full cash-out but still have negative cash flow if expenses and debt service exceed rental income.
| Metric | Formula | Target |
|---|---|---|
| Cash Left in Deal | Total Invested - Refi Proceeds | $0 or less |
| DSCR | Monthly NOI / Monthly Mortgage | 1.25+ |
| Cap Rate | Annual NOI / ARV | 6-8% |
| Cash-on-Cash | Annual Cash Flow / Cash Left | 8-12%+ |
| 70% Rule | Total Invested / ARV | Below 70% |
Step-by-Step BRRRR Deal Analysis
Consider an investor in 2026 evaluating a property: $150,000 purchase price, $40,000 rehab budget, $250,000 ARV, 75% LTV refinance, $2,000/month rent, $500/month expenses, 7% interest rate, 30-year term.
- Calculate Total Investment: $150,000 + $40,000 = $190,000.
- Determine Refinance Proceeds: $250,000 x 75% = $187,500.
- Find Cash Left in Deal: $190,000 - $187,500 = $2,500 remaining.
- Calculate Monthly Mortgage: PMT(7%/12, 360, $187,500) = $1,247/month.
- Compute Monthly Cash Flow: ($2,000 - $500) - $1,247 = $253/month.
- Assess Cash-on-Cash Return: ($253 x 12) / $2,500 = 121.2% on remaining capital.
- Check DSCR: $1,500 / $1,247 = 1.20 -- slightly below the 1.25 lender threshold.
This deal recovers 98.7% of invested capital with strong cash flow, but the 1.20 DSCR may require negotiating better rent terms or reducing expenses to secure DSCR-based financing.
What 2026 BRRRR Benchmarks Look Like
Market conditions in 2026 have shifted the benchmarks that experienced BRRRR investors use to evaluate deals.
Higher interest rates mean mortgage payments consume a larger share of NOI, making DSCR the critical gatekeeper for refinancing.
| Benchmark | 2024 Target | 2026 Target | Why It Changed |
|---|---|---|---|
| Cash-on-Cash Return | 12%+ | 8-10%+ | Higher rates reduce cash flow |
| DSCR | 1.20+ | 1.25+ | Lenders tightened requirements |
| Cap Rate | 5-7% | 6-8% | Investors demand higher yield |
| LTV on Refi | 75-80% | 70-75% | Lenders more conservative |
| Max All-In Cost | 75% of ARV | 70% of ARV | Tighter margins require buffer |
For the default example in this calculator -- $100,000 purchase, $30,000 rehab, $180,000 ARV at 75% LTV -- the deal achieves full cash-out with $135,000 in refinance proceeds covering the $130,000 total investment.
The 1.22 DSCR is close to the 1.25 threshold, and the 7.33% cap rate is solid for most markets.
Lender Requirements and the Refinance Phase
From a lender's perspective, the refinance is the most scrutinized phase of a BRRRR deal.
In 2026, DSCR lenders focus on three key metrics: the appraised value (which determines LTV), the debt service coverage ratio (which must typically exceed 1.25), and the seasoning period (usually 6-12 months of ownership before refinancing).
The seasoning requirement means holding costs matter.
On a $130,000 all-in investment with 6 months of holding at $800/month in carrying costs, you add $4,800 to your effective total investment.
This does not change your refinance proceeds but does increase the true cash left in the deal.
Frequently Asked Questions
What does 'Cash Left in Deal' mean in a BRRRR analysis?
Cash Left in Deal is the difference between your total investment (purchase price plus rehab cost) and your refinance proceeds. A value of $0 or less means you achieved full cash-out -- you recovered all invested capital through the refinance and can redeploy it into your next deal.
How does a higher LTV affect my BRRRR deal?
A higher Loan-to-Value (LTV) percentage during refinance yields greater proceeds. Refinancing a $250,000 ARV at 80% LTV returns $200,000 versus $175,000 at 70% LTV -- a $25,000 difference that can determine whether you achieve full cash-out or leave capital in the deal.
What is a good Cash-on-Cash Return for a BRRRR property?
Most investors target 8-12% or higher for a BRRRR property in 2026. If you achieve full cash-out (zero cash left in the deal), the return is technically infinite, which is the ideal BRRRR outcome. For deals with capital remaining, 10%+ indicates strong execution.
Why is DSCR important for BRRRR refinancing?
Debt Service Coverage Ratio (DSCR) measures your property's NOI relative to debt payments. Most DSCR lenders require 1.25 or higher to approve a cash-out refinance. A DSCR below 1.0 means the property cannot cover its mortgage from rental income alone, making refinancing difficult.
How does the 70% rule apply to BRRRR deals?
The 70% rule states that your total investment (purchase price plus rehab cost) should not exceed 70% of the ARV. For a $180,000 ARV, that means spending no more than $126,000 all-in. Staying below this threshold increases your chances of full cash-out at a 75% LTV refinance.
What cap rate should I target for a BRRRR rental?
Cap rates of 6-8% are considered solid for BRRRR rentals in most 2026 markets. Rates above 8% indicate strong income relative to property value, while rates below 5% are typical in expensive metros where appreciation drives returns more than cash flow.