BRRRR Calculator: Cash-Out Refinance and Rental Cash Flow
Loan coverage is not cash payback: this BRRRR calculator keeps them, refinance costs and monthly flow apart.
What This Calculator Does
Say you buy, pay for the rehab in cash, then refinance. Type in what buying and refinancing cost, the debt you began with and any principal paid down. The calculator sets gross loan coverage beside the net cash the refinance really releases, because the same coverage can return very different amounts of your own money. A monthly rent cash flow estimate follows, built from the new-loan and operating inputs you entered.
Who Is This For
A Florida BRRRR case is only as solid as its paperwork. Documented costs and lender quotes go in; a nominal cash ledger of your stated figures comes out, for investors, real-estate agents and their clients. It approves no loan, rests on no verified valuation, skips the full financing lifecycle and does not plan all your personal liquidity.
How It Works
Fill in the fifteen fields that apply, and type 0 wherever an amount is zero., and type 0 wherever an amount is zero. Purchase costs you paid in cash get entered a single time, and refinancing costs taken out of the new loan also go in just a single time. Leave principal out of the monthly carry, because principal you've already paid down on the purchase loan has a field of its own. Next comes your ARV, along with the LTV your lender offers. Is there a new loan? Add its rate and pick a term. After that, enter rent, vacancy and operating costs, and flag any taxes, insurance or HOA dues those costs already include. Press Calculate. Now set the results side by side: rental cash flow, the cash the refinance frees up, the portion that comes back to you, and what stays tied up in the property. Get the real payoff number from your lender, apart from this tool.
Frequently Asked Questions
What costs and own cash does this BRRRR calculator use?
Project cost first, then your own cash, which is built from it. Project cost adds up the purchase price, the rehab you paid in cash, acquisition costs, and the non-principal carry multiplied by each full month held. Acquisition costs are the non-refundable cash that left your pocket, minus any credits you can actually use. Refundable escrow stays out, and so do reserves you never spent. Own cash takes project cost, subtracts the original purchase loan and adds back principal you really repaid. That principal isn't an expense, so carry never picks it up again. Rent collected before the refinance doesn't shrink the outlay. Own cash measures gross outflow: it isn't your peak liquidity, and it isn't your total personal liquidity.
Why isn't loan coverage the same as cash recovered?
Because they answer different questions. Coverage compares the new loan with project cost, capped at 100%, and it looks at that loan before any of it pays off the old debt or covers refinancing costs. Payback starts from refinance cash. Take the new loan, subtract what you still owe on the purchase loan, then subtract refinancing costs. A positive result comes back to you as cash returned, capped at what you invested. A negative one means you have to bring extra money, and the calculator shows that minus sign rather than dressing it up as zero. Cash left in the deal floors at zero. Money beyond what you put in is added borrowing. It isn't profit. If you put zero of your own cash in, no returned share appears.
Where do principal payments and refinancing charges show up?
Your modeled old payoff is the original purchase principal less whatever principal you repaid in cash. Each repayment adds to your own outlay and shrinks that payoff, yet it never counts as a project expense or as monthly carry. Refinancing costs are the net charges other than principal, taken a single time from the new loan's proceeds, and they stay separate from acquisition costs you paid in cash. Unpaid interest or penalties beyond those go in only if you haven't counted them already. Amortization history isn't tracked. The model also leaves out extra draws and a financed rehab. Need the actual payoff? Ask your lender for a dated figure, because the principal difference you type here is not a settlement quote.
Which numbers drive monthly flow after refinancing?
Take the rent left after vacancy. Subtract operating costs, then the new loan's principal and interest: that's your monthly flow. Operating costs may already hold HOA dues, insurance, property taxes and maintenance, so none should be omitted or double-counted. Cash-on-cash multiplies the monthly flow by 12 and divides by the cash left in the deal. It is not guaranteed annual income, a return from appreciation or an IRR. When no own cash is left, there is no ratio at all, even if the flow is negative. Getting all your cash back neither makes the flow positive nor makes the property risk-free.
I've typed an ARV and an LTV, or a zero new loan: am I approved?
No. An ARV, a lender's LTV or a zero new loan approves nothing on its own. Enter your lender's terms, or a scenario you spell out yourself. LTV accepts 0%–100%. The rate accepts 0%–25%, and it counts only when a new loan exists. For the term, use the full-amortization term you were quoted. Those ranges don't set a limit for every loan program, and they can't tell you whether you qualify. An ARV of 0 works as a stress test for lost value, and rent can be 0 as well. If ARV × LTV leaves zero new principal, rate and term drop out, and the calculator invents no bank offer to fill that gap. You might still have to add cash for the old principal or the refinancing costs. Check the lender's valuation, seasoning, underwriting and real payoff on their own.
How does the calculator handle months, rounding and limits?
Enter the holding period as 1–36 whole months; if you type 2.0, the calculator reads 2, not 20. No single amount can pass $2 billion. LTV, rate and vacancy can carry up to four decimals, as long as each stays within its allowed range. The new loan, the rent after vacancy and the monthly payment each get rounded to the cent one time. Cash totals add up those rounded sums, then add the cents of monthly carry for every full month. Percentages are worked out from the underlying totals, so they may not match the figures you see rounded on screen. Anything above $100 billion can't be shown, a limit of this calculator and not a bank rule. Income and profit tax, IRR, reserves and the full loan and rental history aren't modeled. Once you have fresh quotes from a lender, run the numbers again.