BRRR Calculator

Buy-Refurbish-Refinance-Rent strategy calculator. Model value-add deals and calculate how much capital you can recycle through refinancing.

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About the BRRR Calculator

What it does and how it helps you

The BRRR Calculator helps UK property investors model Buy-Refurbish-Refinance-Rent strategies. This value-add investment approach allows you to purchase undervalued properties, add value through renovation, refinance to release capital, and generate rental income. Our calculator shows exactly how much capital you can recycle and your expected returns.

Calculate capital recycled through refinancing

Model bridging finance costs during refurb

Analyze post-refinance cashflow and yields

Assess DSCR for lender requirements

Compare infinite vs limited returns

How It Works

Understanding the calculation method

The BRRR strategy (Buy-Refurbish-Refinance-Rent) is a powerful approach to building a property portfolio while recycling capital. Here's how it works and what our calculator analyzes:

Stage 1: Buy

Purchase a property below market value - typically one that needs work. You'll usually use bridging finance for this (70-75% LTV) because traditional BTL lenders won't lend on properties requiring significant work.

Stage 2: Refurbish

Renovate the property to increase its value. The goal is to add more value than the refurbishment costs. For example, spending £30,000 to add £70,000 of value. This is where the "magic" of BRRR happens.

Stage 3: Refinance

Once refurbished, refinance onto a standard BTL mortgage at 75% of the new After Repair Value (ARV). If done correctly, the refinance amount covers your total investment, meaning you get your money back.

Stage 4: Rent

Let the property to generate monthly cashflow. With no (or minimal) capital left in the deal, your cash-on-cash return can be extremely high or even infinite.

What Our Calculator Analyzes

1. Total Investment: Purchase price + refurb + stamp duty + fees + bridging interest 2. Refinance Amount: 75% (or your chosen LTV) of the ARV 3. Capital Recycled: Refinance amount minus total investment 4. Post-Refinance Cashflow: Rent minus interest-only mortgage payment 5. Key Metrics: Cash-on-cash return, DSCR, gross yield, ROI

The Key Numbers to Watch

- ARV vs Total Investment: ARV should be at least 133% of total investment to fully recycle at 75% LTV - DSCR: Should be 1.25+ to refinance with most lenders - Monthly Cashflow: Must be positive for a sustainable investment

When to use this calculator

Use this calculator when evaluating value-add property opportunities. The BRRR strategy works best when you can purchase at least 20-25% below ARV and add significant value through renovation. Ideal for investors who want to grow portfolios quickly by recycling capital rather than saving for each deposit.

Frequently Asked Questions

Common questions about this calculator

A good BRRR deal allows you to recycle 75-100% of your capital through refinancing while maintaining positive cashflow. Aim for: purchase price at 70-75% of ARV, refurb costs that add 2-3x their value, monthly cashflow of £150+ after refinance, and DSCR of 1.25+. The best deals let you pull out all your capital and keep equity.

Initially you need funds for: bridging deposit (25-30% of purchase price), full refurb costs, stamp duty, and fees. Total typically 35-45% of purchase price plus refurb. The goal is to get most or all of this back through refinancing. Many investors use joint ventures or private lending to fund BRRR deals.

UK bridging rates typically range from 0.55% to 1.5% per month. Budget 0.75-0.95% for most deals. Also factor in arrangement fees (1-2%), exit fees (often 1%), and valuation costs. A 6-month bridge at 0.85% on £180k adds about £9,180 in interest - significant but recoverable if the deal stacks.

Research sold prices of similar refurbished properties in the same area on Rightmove, Zoopla, or Land Registry. Get 3-5 comparable sales from the last 6 months. Be conservative - use the lower range of comparables. Consider getting a RICS valuation before committing. Overestimating ARV is the biggest BRRR mistake.

This means you'll have 'money left in' the deal. Calculate your cash-on-cash return on this trapped capital. If it's above 10-15%, the deal may still be worthwhile. Alternatively: negotiate a lower purchase price, reduce refurb scope, or increase the ARV through higher-spec renovation. Some money left in isn't failure - it's still equity.

Related Property Terms

BRRR calculator UKBuy Refurbish Refinance RentValue-add property calculatorCapital recycling propertyBridging finance calculatorBTL refinance calculatorAfter Repair Value calculatorProperty renovation ROICash on cash return propertyProperty investment strategy UK