BRR Calculator 2026
Calculate returns on buy-refurbish-refinance (BRR) property investments. See your total investment, refinance potential, and cash-on-cash return.
BRR Details
BRR Results
Cash Left in Deal
£15,000
Total Money In
£180,000
Refinance Amount
£165,000
Cash-on-Cash Return
53.2%
Gross Yield
5.2%
Equity Created
£50,000
Monthly Cash Flow
£665
For illustration only. Actual costs and returns may vary. Consult professionals.
How BRR Works
Buy a property below market value, renovate it to add value, then refinance at the higher after-repair value (ARV). The refinance pulls out most or all of your initial investment, allowing you to recycle capital into the next deal.
Stamp Duty on BRR
Stamp duty is paid on the purchase price, not the ARV. If it's a second property or buy-to-let, you'll pay the 5% additional dwelling surcharge. Factor this into your total investment calculation.
Cash Recycling Explained
Most lenders will refinance at 75% LTV based on the ARV. If your total investment is £150k and ARV is £200k, you can refinance £150k (75% of £200k), recycling 100% of your cash. This is the 'infinite return' scenario.
BRR Scenario Examples
| Purchase Price | Refurb Cost | ARV | Total Investment | Refinance (75%) | Cash Left In |
|---|---|---|---|---|---|
| £120,000 | £30,000 | £200,000 | £150,000 | £150,000 | £0 (100%) |
| £180,000 | £40,000 | £280,000 | £220,000 | £210,000 | £10,000 (95%) |
| £250,000 | £50,000 | £375,000 | £300,000 | £281,250 | £18,750 (94%) |
| £300,000 | £60,000 | £450,000 | £360,000 | £337,500 | £22,500 (94%) |
* Total investment includes purchase price, refurb costs, stamp duty, and acquisition costs
Special Considerations for BRR
Bridging Finance Costs
Most BRR deals use bridging finance during purchase and refurbishment. Typical rates are 0.5-1% per month, plus arrangement fees of 1-2%. Include these costs in your total investment calculation.
6-Month Refinance Rule
Most mortgage lenders require you to own the property for at least 6 months before refinancing. Some will lend based on purchase price + refurb costs rather than ARV if you refinance too early.
Valuation Risks
Your refinance depends on a mortgage valuation, not your own estimate. Always get independent RICS valuations during the deal to ensure your ARV assumptions are realistic and achievable.
Building Regulations & Planning
Structural changes, extensions, or loft conversions require building regulations approval and potentially planning permission. Non-compliant work can reduce the property's value and prevent refinancing.
Important: Valuation Risk
BRR success depends heavily on accurate ARV estimates. Always get independent valuations before committing to a deal. A 10% valuation shortfall can turn a profitable BRR into a loss-making project if you cannot refinance enough capital.
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.