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BRRRR Calculator: Model Cash Left in the Deal and Cash-on-Cash Return
Enter your purchase price, rehab budget, after-repair value, refinance leverage, and rent to see how much of your capital comes back at the refinance, what stays trapped in the deal, and what the property actually returns on the money you leave behind.
A BRRRR calculator models the four money events in a buy, rehab, rent, refinance, repeat deal: total cash invested at acquisition and rehab, the refinance loan amount produced by the after-repair value and the lender's leverage limit, the cash left in the deal after that loan pays you back, and the ongoing monthly cash flow and cash-on-cash return on whatever capital remains.
- ✓Cash left in the deal equals total cash invested minus the refinance loan amount.
- ✓The refinance loan amount is the after-repair value multiplied by the program leverage limit, and it is capped further by the coverage ratio.
- ✓Cash-on-cash return divides annual cash flow by the capital still in the deal, so a full capital return makes the metric undefined rather than infinite.
- ✓Seasoning rules govern when the appraised after-repair value, rather than your purchase price, can be used.
- ✓Appraisals come in below optimistic after-repair estimates often enough that you should model a lower value too.
What this means for you: the deal is defined by the refinance, not the purchase — if the after-repair value or the leverage limit comes in lower than planned, your capital stays trapped in the property.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
The four numbers that decide a BRRRR
- All-in cost. Purchase price plus rehab plus every closing, holding, and carrying cost. Investors routinely underestimate the third category.
- After-repair value. What an appraiser will support once the work is done, not what you hope the comparable sales will say.
- Refinance leverage. The program's maximum loan-to-value on a rate-and-term or cash-out refinance, whichever your file is. Cash-out is normally capped lower.
- Coverage ratio at the new payment. Even when leverage allows the loan, the ratio has to clear the program floor. See the DSCR calculator.
Why the refinance, not the purchase, defines the deal
A BRRRR only recycles capital if the refinance returns most of it. If you are all in at $196,000 and the property appraises at $260,000 with 75% leverage available, the new loan is $195,000 and you recover almost everything. If the appraisal comes in at $235,000, the loan is $176,250 and roughly $20,000 of your capital stays in the property, which changes both your return and your ability to do the next deal. Model both outcomes before you buy.
Seasoning: the timing rule people forget
Investor programs generally require the property to be owned for a set period before the appraised value can be used instead of the purchase price. Buy in March, finish the rehab in May, and you may still be waiting on the seasoning clock in July while a bridge loan accrues interest. Confirm the seasoning requirement for your intended refinance program before you choose the acquisition financing.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Financing the acquisition and rehab
Most BRRRR acquisitions are funded with cash, a bridge loan, or a fix and flip loan, then refinanced into a long-term DSCR loan. Our BRRRR loans guide walks through each stage and what each lender needs. Holding cost during rehab belongs in the closing-costs field of this calculator, not in a footnote.
Reading cash-on-cash correctly
Cash-on-cash return is annual cash flow divided by the capital still in the deal. If the refinance returns all of your money, the denominator is zero and the metric stops being meaningful — the calculator reports that rather than printing an infinite return. In that situation, judge the deal on cash flow, debt coverage, and the equity created, not on a percentage.
Where BRRRR deals actually fail
- Rehab budget overruns, which move both cash invested and the timeline.
- An appraisal below the assumed after-repair value.
- Rents that do not support the new payment, so the coverage ratio caps the loan below the leverage limit.
- Rate movement between acquisition and refinance.
- Seasoning and permitting delays that extend expensive short-term financing.
Run the model with a 10% rehab overrun and a 7% lower after-repair value. If it still works, the deal has real margin.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
BRRRR Deal Calculator
Results
- Total cash invested
- $196,000
- Refinance loan amount
- $195,000
- Cash left in deal
- $1,000
- Estimated refi P&I
- $1,363/mo
- Monthly cash flow
- $187/mo
- Cash-on-cash return
- 223.8%
Illustrative only, not a quote, lock, offer, or commitment to lend. Assumes a 30-year amortizing refinance loan and does not include vacancy, taxes, insurance, or reserve requirements unless entered in expenses. Binding figures appear on your Loan Estimate.
Next steps
Emailing your BRRRR investment calculator scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Total cash invested is purchase price plus rehab budget plus the all-in closing and holding costs you enter. The refinance loan amount is the after-repair value multiplied by the refinance loan-to-value you enter. Cash left in the deal is total cash invested less that loan amount, floored at zero. Principal and interest is a standard 30-year amortizing payment at the rate you enter. Monthly cash flow is market rent less operating expenses less that payment, and cash-on-cash return is twelve months of cash flow divided by the cash left in the deal.
The model uses the figures you enter and does not verify the after-repair value, rents, or rehab costs for any address. It assumes a 30-year amortizing refinance, excludes vacancy, capital reserves, income taxes, and any prepayment penalty, and does not apply the coverage-ratio floor or seasoning requirement that a lender will apply. Results are illustrative and are not a quote, lock, offer, or commitment to lend.
Results are illustrative estimates only and are not a quote, lock, offer, or commitment to lend. No rate, APR, or program approval is implied. Binding figures appear on your Loan Estimate. Eligibility, terms, and availability vary by borrower, property, lender, loan program, and state.
Talk through your scenario today
A Simply Approved Mortgages Loan Officer can confirm which of these paths actually fits your credit, income, and property. Educational only, no obligation.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Compare a long-term lease, Section 8, and a short-term rental
The same house produces three different files depending on how you rent it. Enter your payment and your own operating assumptions, pick the county so the voucher column starts from the published Fair Market Rent, and compare what is left for debt service under each strategy. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend, and none of it is a projection of what your property will earn.
Shared inputs
Published Fair Market Rent for this selection: loading… a month. HUD source
Lease and voucher assumptions
Short-term rental assumptions
Optional. We look up published market performance for the address and fill the nightly rate and occupancy below. You can edit both afterwards.
Short-term operating costs are usually the largest of the three strategies, and the gross figure alone is never the comparison.
| Strategy | Gross after vacancy | Net before debt service | Cash flow vs PITIA | Coverage ratio |
|---|---|---|---|---|
| Long-term lease12-month lease, market rent | $2,444 | $2,200 | $-200 | 0.92 |
| Housing Choice Voucher (Section 8)HUD Fair Market Rent × payment standard | $0 | $0 | $-2,400 | — |
| Short-term rentalNightly rate × occupancy | $3,705 | $2,297 | $-103 | 0.96 |
On the assumptions entered, short-term rental leaves the most income before debt service. That is arithmetic, not advice: the strategy a lender will actually underwrite depends on the documentation available, the program, and whether the use is permitted at the address.
Long-term lease
- What underwriting reads
- The executed lease or the appraiser rent schedule (Form 1007/1025), commonly the lower of the two.
- Income pattern
- One tenant, one renewal cycle a year.
- What to check first
- A single move-out takes the whole income to zero until it re-leases.
Housing Choice Voucher (Section 8)
- What underwriting reads
- The executed HAP contract plus the tenant portion, generally compared with market rent.
- Income pattern
- The agency portion is paid by the PHA on a set schedule; the tenant portion stays your collection risk.
- What to check first
- The unit must pass inspection, and the PHA has to find the rent reasonable before the contract starts.
Short-term rental
- What underwriting reads
- Twelve months of platform or property-manager statements, or a market revenue projection where a program accepts one.
- Income pattern
- Seasonal and event-driven; revenue can swing widely month to month.
- What to check first
- Local ordinances, HOA rules, licensing, and a landlord policy that does not cover nightly stays.
Next steps
Emailing your Rental strategy comparison scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Each column starts from the income you enter, reduces it by the vacancy allowance you enter, then subtracts the operating-cost percentage you enter to reach net income before debt service. The voucher column starts from the published HUD Fair Market Rent for the county and unit size you select, multiplied by the payment standard percentage you enter. The short-term column multiplies your nightly rate by 30.42 average nights a month and your occupancy percentage. Coverage ratio divides net income before debt service by the monthly PITIA you enter.
Every figure is an estimate built from your own inputs and is not a quote, rate lock, offer, approval, or commitment to lend, and it is not a projection of income the property will earn. A Fair Market Rent is a published schedule, not an approved rent: the public housing agency sets the payment standard, must find the rent reasonable against comparable unassisted units, and must pass the unit at inspection before a contract begins. Short-term rental use may be restricted or prohibited by local ordinance or HOA rules, and requires insurance written for nightly stays. Lenders differ on which documents they will accept for each strategy and on how they treat vacancy and expenses, and program parameters can change without notice.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Related tools
Tools for a DSCR investment property file
Only the estimators that apply to this kind of file. Every output is an illustrative estimate built from figures you enter — not a quote, rate lock, offer, approval, or commitment to lend.
Business-purpose loans are for non-owner-occupied property only. Program availability, leverage and terms vary by state, property and program, and can change without notice. Simply Approved Mortgages LLC is a mortgage broker and arranges, but does not make, loans. Equal Housing Opportunity.
BRRRR calculator: questions about the numbers
Answers to the most common BRRRR calculator: questions about the numbers questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
Federal Housing Finance Agency
FHFA — House Price Index for local value trends
Internal Revenue Service
IRS — Residential rental property, repairs versus improvements (Publication 527)
U.S. Census Bureau
Census Bureau — Construction cost and housing data
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the DSCR and investor financing library
This page sits inside our DSCR and investor financing coverage.
What most readers open next
- The DSCR loan guideBecause how a property-qualified investor loan is underwritten.
- DSCR qualifying requirementsBecause coverage, reserves, experience, and entity rules in one place.
- The short-term rental analyzerBecause nightly-rate markets need a different income test than long-term rent.
- Financing voucher-occupied rentalsBecause payment standards and HAP contracts change how rent is documented.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
BRRRR Loans
Financing each stage from acquisition through refinance.
Read the guide →Guide
Fix and Flip Loans
Short-term acquisition and rehab financing.
Read the guide →Guide
Bridge Loans
Carrying the property until the refinance clears.
Read the guide →Guide
DSCR Cash-Out Refinance
The exit loan and its seasoning rules.
Read the guide →Guide
DSCR Calculator
Check the coverage ratio at the new payment.
Read the guide →Guide
Investment Property Calculator
Long-run returns on the stabilized rental.
Read the guide →Guide
DSCR Loan Rates
What the refinance is likely to cost.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
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