BRRRR Calculator

A negative Cash Left in Deal means the refinance loan amount (After Repair Value times Refinance LTV %) exceeded Total Investment (purchase price, rehab, and holding costs combined) — the investor pulled cash OUT of the deal at refinance rather than leaving any capital in it. That excess shows up separately as Cash Out at Refinance, and it's the core mechanism that lets a BRRRR investor recycle the same capital into a new deal rather than having it permanently tied up.

New Monthly Mortgage uses the standard amortizing-loan formula against the Refinance Amount (After Repair Value times Refinance LTV %), the Refi Interest Rate, and the Refi Term in years — the same math as any conventional mortgage payment calculation. It replaces any prior acquisition financing entirely; this calculator does not model the original purchase loan, only the cash needed to buy plus rehab and the new loan taken out at refinance.

After Repair Value (ARV) is the single input the refinance phase is built on: Refinance Amount is ARV times Refinance LTV %, so raising ARV directly raises how much cash comes back at refinance, lowers Cash Left in Deal, raises Forced Appreciation (ARV minus Purchase Price), and raises Equity Captured (ARV minus the new loan). Because so many outputs derive from ARV, an inflated or overly optimistic ARV estimate is the single most common way a BRRRR analysis misleads an investor — get an independent, comparable-sales-based appraisal rather than relying on optimistic assumptions.

Forced Appreciation is After Repair Value minus the original Purchase Price — the total value created by buying below market and renovating, regardless of financing. Equity Captured is After Repair Value minus the new refinance loan balance — the investor's actual ownership stake in the property after cashing out equity through the refinance. The two are independent quantities that both derive from ARV but move separately: Equity Captured only equals or falls below Forced Appreciation when Purchase Price is at or below the Refinance Amount. A deal bought close to ARV but refinanced at a low LTV can show Equity Captured far exceeding Forced Appreciation, since a small refinance loan leaves most of ARV as equity even though little value was actually created by the purchase-to-ARV spread.