How much of your own money stays locked in a BRRRR deal? On the default one, a $400,000 purchase, $55,000 of renovation and a $620,000 value after repairs, only $16,400 is still in the property once the refinance closes. Change the inputs below to test your own plan.
What does BRRRR stand for?
Buy, renovate, rent, refinance, repeat. You buy a property that needs work, often with a short-term loan, and fix it up. When tenants move in, you refinance at the new, higher value and use the proceeds to pay off the short-term loan. Whatever cash comes back is seed money for the next purchase, and the calculator measures how much fails to come back.
| Step | Default amount |
|---|---|
| All-in cost with 6 months of short-term interest | $481,400 |
| Cash put in before the refinance | $161,400 |
| New mortgage at 75% of $620,000 | $465,000 |
| Cash returned at the refinance | $145,000 |
| Cash left in the deal | $16,400 |
| Cash flow after the new mortgage, yearly | $5,548 |
How the default deal adds up
The full cost comes to $481,400, and that’s the price, the renovation, $12,000 of costs and $14,400 of interest on the $320,000 short-term loan. Take away the loan and you’ve put in $161,400. The new $465,000 mortgage repays the loan and hands back $145,000, which leaves $16,400 in the property.
Rent is $4,200 a month. After 4% vacancy and the listed expenses, that leaves $5,548 a year once the mortgage is paid. Investors call the return on the leftover cash cash-on-cash, and here it’s 33.83%.
That big percentage is a bit of a magic trick, so look at what’s behind it. It’s $5,548 a year divided by only $16,400. The same cash flow on $161,400 would be about 3.4%. BRRRR works when the refinance gives most of your money back, and the percentage is only as good as that assumption.
What if the appraisal comes in low?
This is the risk that sinks plans. Say the lender values the property at $560,000. The new mortgage shrinks to $420,000, and the $145,000 that came back becomes $100,000. Cash left in the deal jumps to $61,400. Yearly cash flow actually rises to $8,813, because the payment is smaller, yet the return on the cash left falls to 14.35%.
One low appraisal, and the whole plan changes shape.
It works the other way too. To get every dollar back on the default deal, the new mortgage would have to equal the $481,400 all-in cost, which at 75% means a value of about $641,867. That’s $21,867 above the $620,000 target, so with these numbers a little cash stays in the property even if the appraisal lands exactly where you hoped.
Where do BRRRR plans go wrong?
Mostly in the value after renovation. Trust recent sales of finished homes nearby, not the number you’re hoping for, and test a figure below your target, because that’s the one that bites. The holding period trips people up next. Every extra month adds interest and taxes, and the calculator prices interest only on the short-term loan.
Renovations run over, too. If the work costs $10,000 more and you pay it yourself, cash left in the deal goes from $16,400 to $26,400.
It warns you when net income covers the new mortgage by only a thin margin, since a lender may refuse that refinance, and it’s a fair warning to take seriously. What it doesn’t do is model taxes on rent, closing delays or a short-term loan that ends before the refinance is ready. To check the rest of the yield, use the cap rate calculator and the cash-on-cash return calculator.
Why does the refinance use 75% of the value?
It’s a planning default, a ballpark and not a rule. Lenders set their own limits on a refinance, so ask a broker or your bank what they’d offer on your kind of rental before you rely on it. If their limit is lower, change the percentage and see how much more cash stays in.
What this page is based on
Every amount in the results comes from what you type, and the defaults are sample values, not market data. Don’t read them as a market view. The mortgage payment compounds the rate twice a year, the usual Canadian method, and spreads the loan over the 25 or 30 years you pick. The short-term interest is simple interest on the loan for the months you enter. This site has no tie to a lender, the CRA or any government body. Rates and lending limits change. Each lender has its own refinance rules too, so confirm them before you buy, not after.
Planning to hold and rent without a short-term loan? The rental property calculator fits that. For a closer look at the refinance itself, try the mortgage refinance calculator.
About this calculator
- What it does
- Test a BRRRR deal: buy, renovate, rent, refinance and repeat, with cash left in the deal and cash flow after the refinance.
- Category
- Real Estate
- Last checked
- September 30, 2026
- Result type
- Estimate for information only, not tax advice.
Frequently asked questions
What does BRRRR mean?
Buy, renovate, rent, refinance and repeat. You fix up a property, rent it, then refinance to pull your cash back out.
What counts as a good result?
The less cash left in the deal, the harder your money works. Zero means everything you put in came back at the refinance.
Why did my return jump when little cash stayed in?
Cash-on-cash return divides yearly cash flow by the cash left. A tiny divisor makes a huge percentage, so read it next to the dollar cash flow.
What if the appraisal comes in low?
The new mortgage shrinks and less cash comes back. On the default deal, a $560,000 value leaves $61,400 in the property.
Can I buy with cash only?
Yes. Enter 0 for the short-term loan and the calculator drops the interest and the loan repayment.
Sources and updates
Updated: . How we check rates · Editorial team · Updates