Cash-Out Refinance Calculator
See how much cash you can pull with a cash-out refinance at your lender's loan-to-value cap, your new monthly payment, and how it compares to your current loan.
Max cash to you
The new loan at the LTV cap, minus your existing payoff, minus closing costs. Negative means the cap leaves no cash.
$94,000.00
- New loan amount
Home value times the max LTV cap: the most you can borrow.
- $400,000.00
- Cash before closing costs
New loan minus your existing payoff, before closing costs.
- $100,000.00
- Current home equity
Home value minus your existing loan payoff.
- $200,000.00
- New monthly payment
Principal and interest on the new loan.
- $2,528.27
- Current monthly payment
Principal and interest on your current loan, derived from the payoff, current rate, and years left.
- $1,667.50
- Payment change
New payment minus current payment. Positive means your payment rises.
- $860.77
- New loan total interest
Total interest paid over the life of the new loan.
- $510,179.81
- What this means
Whether a cash-out is possible at this cap and what it does to your loan.
- You can take cash out at this cap, which raises your loan balance and resets the loan term
Cash-out equity walk
| Item | Amount |
|---|---|
| Max loan at LTV cap | $400,000.00 |
| Less existing payoff | -$300,000.00 |
| Less closing costs | -$6,000.00 |
| Net cash to you | $94,000.00 |
Quick answer: With the example inputs this page loads by default, the headline result (Max cash to you) comes to $94,000.00. See how much cash you can pull with a cash-out refinance at your lender's loan-to-value cap, your new monthly payment, and how it compares to your current loan. Change any input above and every figure updates instantly in your browser.
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A cash-out refinance replaces your mortgage with a bigger one and hands you the difference in cash. How much you can take is set by your lender's loan-to-value cap, often around 80 percent of the home value. Your cash is that capped loan minus what you still owe minus closing costs. The tradeoff is a larger balance, a new payment, and a reset term, so you pay interest on the equity you cashed out.
What this result means
The headline is the most cash you could take at this loan-to-value cap, after paying off your current loan and the closing costs. The new payment shows what that larger loan costs each month, and the payment change tells you whether it rises or falls versus your current loan. Watch two things. First, a cash-out refinance resets the clock: taking a fresh 30-year term on a bigger balance can mean far more total interest, even at a similar rate, because you are borrowing more for longer. Second, you now pay mortgage interest on the equity you pulled out, so cash-out only makes sense when the use of that money is worth that interest. If you only need a smaller amount or want to keep your current low rate, a HELOC or home equity loan leaves your first mortgage untouched and may cost less overall. Compare this against the HELOC calculator before deciding. This is an estimate for education, not a loan offer or financial advice.
Assumptions
- The new loan is the home value times your max loan-to-value cap, the most a lender will lend against the home. Cash-out refinances are commonly capped at 80 percent for conventional loans; FHA and VA cash-out programs use different caps, so the cap is an editable input.
- The cash you receive is the new loan minus your existing loan payoff minus closing costs. It is not floored: if the capped loan barely covers your payoff, or does not cover it at all, the cash out is shown as negative and the result explains that a cash-out is not possible at that cap.
- Closing costs are paid from the cash-out proceeds rather than added on top of the loan, because the loan is already at the LTV cap. Each figure is rounded to the nearest cent.
- The new monthly payment is the principal and interest on the full capped loan at the new rate and term, using the shared amortization engine (fixed rate, interest charged monthly on the balance, each payment at month end).
- Your current monthly payment is derived by amortizing your existing payoff over the years remaining at your current rate, so the payment change is a like-for-like principal-and-interest comparison. Both payments are principal and interest only.
- The new loan total interest is the interest paid over the full new term. A cash-out refinance resets the loan clock, so taking a fresh long term on a larger balance can raise your total interest even at a similar rate.
- Not modeled: property taxes, homeowners insurance, PMI or mortgage insurance, and HOA dues; the tax treatment of mortgage interest; points; rate changes; and any seasoning, occupancy, or credit requirements a lender applies to a cash-out refinance.
- This is an estimate for educational purposes only, not financial, legal, or tax advice, and not a loan offer. Your lender's cap, rate, and closing costs will differ. Consult a qualified professional and your lender for numbers specific to your situation.
Key terms
Definitions for the terms this calculator uses, in our finance glossary .
How a cash-out refinance is calculated
A cash-out refinance replaces your existing mortgage with a new, larger loan and pays you the difference in cash. This calculator works out the most you can take at your lender’s loan-to-value cap, the new payment, and how it compares to keeping your current loan.
The maximum loan and the cash it frees up
Lenders limit a cash-out refinance to a share of the home value, the loan-to-value (LTV) cap. The new loan is the home value times that cap:
new loan = home value x max LTV cap
The new loan first pays off your existing balance, then closing costs, and the rest is your cash:
gross cash = new loan - existing payoff
net cash to you = new loan - existing payoff - closing costs
Closing costs come out of the proceeds rather than being added on top, because the loan is already at the LTV cap. The net cash is not floored: if the capped loan barely covers your payoff, or does not cover it at all, the cash out is negative and a cash-out refinance is not possible at that cap.
The new payment, and the comparison
The new monthly payment is the standard amortization of the full capped loan at the new rate and term (the same shared payment engine the mortgage and refinance calculators use):
new payment = amortize(new loan, new rate, new term)
Your current payment is derived the same way, from your existing payoff over the years remaining at your current rate, so the payment change is a like-for-like principal-and-interest comparison:
payment change = new payment - current payment
A positive payment change means the larger loan costs more each month; a negative one means a low enough new rate more than offsets the larger balance.
The LTV-cap convention, and that programs differ
The 80 percent default is the common conventional cash-out cap. It is an editable input because programs differ: FHA cash-out is commonly capped near 80 percent, and VA cash-out can go higher for eligible borrowers. Lenders also apply seasoning, occupancy, and credit rules that this estimate does not model.
Cash-out refinance vs HELOC
A cash-out refinance replaces your entire mortgage, so it resets the rate and term on the whole balance. If your current rate is low, that is expensive: you give up the low rate on the part you already owed, not just on the cash you took. A HELOC or home equity loan instead leaves your first mortgage untouched and borrows only against your equity, which is often cheaper when you need a smaller amount or want to keep a low first-mortgage rate. The tradeoff is that a HELOC usually carries a variable rate and a later payment jump. Compare both before deciding.
Worked example
Using the defaults: a 500,000 dollar home, a 300,000 dollar existing payoff at 4.5 percent with 25 years left, an 80 percent LTV cap, a new 6.5 percent rate over 30 years, and 6,000 dollars of closing costs.
- new loan =
500,000 x 80% = 400,000 - gross cash =
400,000 - 300,000 = 100,000 - net cash to you =
100,000 - 6,000 = 94,000 - new payment = principal and interest on 400,000 at 6.5% over 30 years =
2,528.27 - current payment = principal and interest on 300,000 at 4.5% over 25 years =
1,667.50 - payment change =
2,528.27 - 1,667.50 = 860.77(your payment rises by about 861 dollars)
So you could pull about 94,000 dollars in cash, but your monthly payment rises by roughly 861 dollars and you restart a 30-year clock on a larger balance. Whether that is worth it depends on what the cash is for.
Reset term and interest on cashed-out equity
Two costs are easy to miss. First, resetting to a fresh 30-year term on a larger balance can raise your total interest sharply, even at a similar rate, which is why the new loan total interest is shown. Second, you now pay mortgage interest on the equity you cashed out for as long as you hold the loan, so a cash-out only makes sense when the use of that money is worth that ongoing interest.
What this includes and excludes
It includes the capped loan, the cash walk, both principal-and-interest payments, the payment change, and the new loan total interest. It excludes property taxes, insurance, PMI, and HOA dues; points; the tax treatment of mortgage interest; rate changes; and lender seasoning, occupancy, and credit requirements. This is an estimate for education, not a loan offer or financial, legal, or tax advice.
Sources
- Consumer Financial Protection Bureau, “What is a cash-out refinance?” and refinancing guidance, consumerfinance.gov.
- Consumer Financial Protection Bureau, guidance on home equity lines of credit (HELOCs) and comparing ways to borrow against home equity, consumerfinance.gov.
Frequently asked questions
- How much can I cash-out refinance?
- Your cash is the new loan at your lender's loan-to-value cap, minus what you still owe, minus closing costs. At an 80 percent cap on a 500,000 dollar home, the new loan is 400,000; if you owe 300,000 and pay 6,000 in closing costs, you walk away with about 94,000 in cash.
- How does a cash-out refinance work?
- You replace your existing mortgage with a new, larger one and take the difference in cash. The new loan first pays off your old balance, then covers closing costs, and the rest is yours. You now owe more, have a new payment, and usually a reset term, so you pay interest on the equity you pulled out.
- Cash-out refinance vs HELOC: which is better?
- A cash-out refinance replaces your whole mortgage, so it resets your rate and term on the entire balance. That hurts if your current rate is low. A HELOC or home equity loan leaves your first mortgage alone and borrows only against your equity, which is often cheaper when you need a smaller amount or want to keep a low first-mortgage rate. Compare both before deciding.
- What is the max LTV for a cash-out refinance?
- Conventional cash-out refinances are usually capped at 80 percent of the home value. FHA cash-out is also commonly capped near 80 percent, and VA cash-out can go higher for eligible borrowers. The cap is an editable input here so you can model your program.
- What does my result mean?
- The max cash is what you could pocket at this cap after paying off your loan and closing costs. The payment change shows whether the larger loan raises or lowers your monthly payment. If the cash out is negative, the cap does not leave room to pull cash, and you would need more equity or a higher cap.
Related calculators
Learn how this works
New to this topic? Our companion guide explains it in plain language: HELOC or Cash-Out Refinance: Protect the Rate You Locked
By Sam Sage Last reviewed .