Landlord

Value-Add

BRRR Calculator

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

AI-Powered

Free to use

Deal details

Enter your BRRR deal figures

BRRR analysis

Value-add and refinance metrics

Value Added

£70,000

ARV - Purchase

Total Investment

£197,180

Inc. bridging costs

Refinance Amount

£165,000

75% of ARV

Money Left In

£32,180

Good Recycle

Capital Recycled

£32,180 short

You'll have £32,180 trapped in the deal

Cash on Cash Return

3.7%

Annual return on capital left in

Rental Cashflow (Post-Refinance)

Monthly rent£950

Monthly mortgage (interest only)-£756

Monthly cashflow£99

Deal Stack

Purchase price£150,000

+ Refurb cost£30,000

+ Stamp duty & fees£8,000

+ Bridging interest£9,180

Total investment£197,180

After Repair Value (ARV)£220,000

Equity in property£55,000

Gross Yield

5.18%

DSCR

1.13

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 you exactly how much capital you can recycle and your expected returns.

Calculate capital recycled through refinancing

Model bridging finance costs during refurb period

Analyse post-refinance cashflow and yields

Assess DSCR for lender requirements

How It Works

Understanding the calculation method

The BRRR strategy works in four stages: 1. Buy - Purchase a property below market value, typically one that needs work 2. Refurbish - Renovate the property to increase its value (ARV - After Repair Value) 3. Refinance - Take out a buy-to-let mortgage against the new higher value 4. Rent - Let the property to generate monthly cashflow The calculator analyses your total investment (purchase + refurb + costs + bridging interest) against your refinance amount (typically 75% of ARV) to show how much capital you recover. The goal is to recycle all or most of your investment while retaining equity and cashflow.

When to use this calculator

Use this calculator when evaluating value-add property opportunities. It's ideal for properties requiring renovation where you can add significant value. The BRRR strategy works best when you can purchase at least 20-25% below the ARV to cover refurb costs and still refinance out your capital.

Frequently Asked Questions

Common questions about this calculator

A good BRRR deal typically allows you to recycle 75-100% of your capital through refinancing while maintaining positive cashflow. Ideally, you want a purchase price that's 20-30% below the After Repair Value (ARV), realistic refurb costs, and rent that covers the mortgage with comfortable margin (DSCR of 1.25+).

Initially, you'll need funds for the full purchase (often via bridging finance at 70-75% LTV), refurb costs, and all associated fees. After refinancing, most BTL lenders offer 75% LTV, meaning you'll have 25% equity remaining in the property. The goal is for the refinance to return your initial cash investment.

Bridging rates in the UK typically range from 0.55% to 1.5% per month, depending on the lender, loan-to-value, and your experience. Most BRRR investors budget around 0.75-0.95% per month. Remember to factor in arrangement fees (typically 1-2%) and exit fees.

A typical BRRR project takes 3-9 months from purchase to refinance. Light refurbishments might complete in 3-4 months, while more extensive renovations can take 6-9 months. It's important to factor in realistic timescales when calculating bridging costs.

Aim for an ARV that's at least 125-135% of your total investment (purchase + refurb + costs). This typically means buying at 70-75% of the end value to ensure you can refinance out most or all of your capital at 75% LTV.

Related Property Terms

Buy Refurbish Refinance RentValue-add property investmentProperty flipping UKBridging financeBTL refinanceAfter Repair ValueCapital recyclingProperty renovationCash on cash returnProperty investment strategy