Rental Property ROI & BRRRR Calculator
Financial CalculatorsAnalyze real estate investments and BRRRR (Buy, Rehab, Rent, Refinance, Repeat) properties to maximize your ROI.
How the logic works
We calculate your Total Money In by summing the purchase price, closing costs, and rehab budget. After renovation, the New Loan is calculated as 75% of your ARV ($300,000). The difference is your Cash Left in Deal. If this number is zero or negative, you've achieved a "Perfect BRRRR" and have infinite ROI!
Cash Left in Deal
$23,000
Initial Capital Tied Up
+ Cash Flow
Monthly Net Cash Flow
$153
Profit after all expenses
Cash-on-Cash ROI
8.0%
Annual Return on Equity
Equity Created
$52,000
Wealth boost from rehab
Capital Recirculation
Monthly Cash Flow Split
Rental Property Analysis Report
Professional Investment Analysis
August 10, 2026
Cash Left in Deal$23,000
Monthly Net Cash Flow$153
Cash-on-Cash ROI8.0%
Equity Created$52,000
Purchase & Rehab
| Purchase Price | $200,000 |
| Closing Costs | $5,000 |
| Rehab Budget | $40,000 |
| Holding Costs | $3,000 |
| Total Investment | $248,000 |
Strategy & Refinance
| Market Value (ARV) | $300,000 |
| New Loan Amount (75%) | $225,000 |
| Interest Rate | 6.5% |
| Loan Term | 30 Years |
| Monthly Rent | $2,500 |
Operating Expenses
| Mortgage P&I | $1,422 |
| Taxes & Insurance | $350 |
| Maintenance & CapEx | $250 |
| Management | $200 |
| Vacancy | $125 |
| Total Operating Expenses | $925 |
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Total Investment=Purchase Price+Closing Costs+Rehab+Holding Costs
Cash Left=Total Investment−New Loan
Equity Created=ARV−Total Investment
ROI Cash-on-Cash=Annual Cash FlowCash Left in Deal
- ARV: Estimated market value after all renovations are complete.
- Annual Cash Flow: Net profit after all expenses multiplied by 12.
- Total Investment: Sum of purchase price, closing costs, and rehab.
What is Rental Property ROI & BRRRR Calculator?
The Rental Property ROI & BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Calculator evaluates the total capital efficiency of value-add real estate investments. It calculates baseline operational metrics—including Cash-on-Cash Return, Net Operating Income (NOI), and capitalization rates—while specifically modeling the extraction of forced equity through a cash-out refinance to determine the absolute velocity of money.
Practical Calculation Example
Consider an investor acquiring a distressed property for $100,000 and deploying $30,000 in capital expenditures (CapEx) for rehabilitation. The newly renovated After Repair Value (ARV) is appraised at $180,000. Once the property is leased and stabilized, the investor executes a conventional cash-out refinance at a 75% Loan-to-Value (LTV) ratio against the new ARV, pulling out $135,000. This mechanism effectively recovers the entire initial $130,000 principal plus $5,000 in surplus liquidity, mathematically achieving an infinite Cash-on-Cash return on all future monthly cash flow.
The BRRRR Lifecycle
Institutional and retail value-add investors utilize the BRRRR framework to aggressively scale property portfolios without continuously depleting baseline cash reserves. The methodology strictly follows five sequential operational phases:
| Investment Phase | Financial Action | Strategic Objective |
|---|---|---|
| Buy | Acquire distressed asset under market value. | Secure a high intrinsic margin of safety; typically requires short-term, high-interest capital. |
| Rehab | Deploy strategic capital expenditures. | Force equity appreciation and elevate the asset to maximize potential rental yield. |
| Rent | Secure long-term tenant placement. | Stabilize the asset to generate consistent Net Operating Income (NOI) required to service future debt. |
| Refinance | Execute conventional long-term mortgage. | Liquidate the "forced equity" based on the new ARV to completely recover the initial investment. |
| Repeat | Redeploy extracted liquidity. | Utilize the recovered, tax-free capital to acquire the next asset, generating exponential portfolio growth. |
History and Origin
While the strategy of forcing equity and executing commercial cash-out refinances has been utilized by institutional developers for decades, the specific "BRRRR" acronym was formalized and heavily popularized in the mid-2010s by the BiggerPockets real estate investing community, transforming it into a standardized operational blueprint for retail investors.
Frequently Asked Questions
How accurate is this Rental Property ROI & BRRRR Calculator tool?
Our tools utilize high-precision floating point math guaranteeing accuracy up to the 6th decimal place.
Is this free to use?
Yes, all converters and calculators on ToolsMetrics are 100% free with no limits.