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
Investment Breakdown
Disclaimer: This tool does not constitute financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in government policy, interest rates, or personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Gov UK.
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 using our stamp duty calculator or BTL calculator. Read our landlord guide for full details, or explore our SPV guide if considering a corporate structure for your BRR portfolio.
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.
Frequently Asked Questions
What is the BRRR property strategy?
BRRR stands for Buy, Refurbish, Refinance, Rent. You purchase a below-market-value property, renovate it to increase its value, refinance based on the new higher value to recover your initial investment, then rent it out for income. The goal is to recycle your capital into the next purchase.
Do I pay the 5% surcharge on a BRRR purchase?
Yes. If you already own a residential property, the 5% additional property surcharge applies to BRRR purchases just like any other buy-to-let. This must be factored into your project costs and return calculations from the outset.
Does refinancing trigger another stamp duty payment?
No. Refinancing (remortgaging) does not trigger a new SDLT liability because you are not purchasing or transferring property. You only pay SDLT once, on the original purchase. The refinance simply changes your mortgage lender or product.
What financing options are available for BRRR?
Most BRRR investors use bridging finance for the initial purchase and refurbishment (typically 0.5% to 1.5% per month), then refinance onto a standard buy-to-let mortgage once works are complete. The bridging loan is repaid from the refinance proceeds.
How do I calculate BRRR returns?
Key metrics include cash-on-cash return (annual rental profit divided by cash left in the deal after refinancing), return on investment (total profit divided by total cash invested), and rental yield on the refinanced value. A successful BRRR should aim to return 75% or more of your initial cash outlay.
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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.