BRRRR Strategy Calculator Canada

What the BRRRR calculator does

The calculator follows one investment property through the five stages of the strategy and answers the main question: how much of your money comes back. Buy, rehab, rent, refinance, repeat works because the refinance returns capital that can fund the next purchase. If the capital does not come back, you have simply bought a rental.

The tool tracks cash in and cash out, prices the refinanced mortgage at both the contract rate and the rate a lender will qualify you at, and checks whether the rent still covers the payment on the larger mortgage.

The five stages and where the money moves

Buy. You put down a deposit and pay closing costs. In Canada an investment property normally needs at least 20% down, because default insurance is not available on a property you will not live in. Closing costs include land transfer tax, legal fees, title insurance and an inspection.

Rehab. Every dollar of renovation comes out of your pocket unless you have arranged purchase-plus-improvements financing. The renovation creates the value gap the strategy depends on.

Rent. A tenanted property with a signed lease lets a lender count the rent as qualifying income. Refinancing before the unit is rented usually gives a worse result.

Refinance. The lender appraises the finished property, lends a percentage of the after-repair value, pays out the acquisition mortgage and releases the rest to you. This is the step that returns your capital.

Repeat. Whatever came back becomes the down payment on the next deal, which is why cash left in is the headline output rather than a return percentage.

How the refinance number is built

A property bought at $320,000 with $55,000 of work that appraises at $470,000 supports a mortgage of $376,000 at 80% loan-to-value. The $256,000 acquisition mortgage is paid off from that, leaving $120,000 released.

Against that, the cash invested was $64,000 down, $55,000 of rehab and $10,000 of closing costs, $129,000 in total. So $9,000 stays in the deal and about 93% of the capital is recycled. That is a strong Canadian BRRRR, and it comes entirely from the gap between the all-in cost of $385,000 and the $470,000 appraisal.

Change the appraisal to $445,000 and the released amount falls to $100,000, leaving $29,000 trapped, with nothing else changed. That is why the after-repair value deserves more scrutiny than any other input, and why experienced investors estimate it conservatively.

The qualifying rate at refinance

Canadian federally regulated lenders qualify borrowers at the greater of the contract rate plus a buffer or a minimum floor rate, and that applies at refinance just as at purchase. The calculator shows the payment and the cash flow at both your contract rate and the qualifying rate.

The second figure often decides the deal. In the example, the property makes about $237 a month at a 5.25% contract rate but is about $238 a month underwater at the 7.25% qualifying rate. You will not pay the higher amount, but the lender is testing whether you could, and a deal with no room at the qualifying rate has no room for a renewal at higher rates either.

The buffer and the floor are parameters in this tool rather than fixed in the formula, so the calculation follows the current guideline.

Reading the cash flow lines

Monthly cash flow is rent less operating costs less the mortgage payment. Operating costs on a Canadian rental typically include property tax, insurance, a maintenance reserve, a vacancy allowance, and any utilities or condo fees you pay rather than the tenant.

The most common modelling error is understating that number. A property showing $200 a month of cash flow on rent minus mortgage can turn negative once a realistic 5% vacancy allowance and a maintenance reserve are added. Enter the full operating figure, not just the bills you happen to remember.

Cash-on-cash return divides annual cash flow by the cash still in the deal. It flatters a successful BRRRR, because a small denominator gives a large percentage, and it means little when almost nothing is left in. Read it next to the dollar cash flow.

Using the result before you commit

Run the deal three times: with your expected after-repair value, with that value 5% lower, and with the rehab budget 20% higher, because renovations usually run over. If the deal still recycles most of the capital and still carries itself at the qualifying rate in all three, it is worth pursuing.

If it fails only the qualifying-rate test, the fix is usually a longer amortization or a smaller refinance rather than walking away. If it fails on cash left in, the purchase price was too high for the finished value, and no financing structure will repair that.

The figures here are estimates based on your inputs. Appraised values, lender policy, provincial land transfer tax and actual renovation costs will differ, and this is general information rather than investment advice.

About This Tool: BRRRR Calculator Canada

BRRRR calculator canada: use this tool to get an instant, accurate estimate. The figures follow official guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.