Free cash-out refinance calculator
Estimate your cash-out refinance in seconds. Enter your home value, mortgage balance, cash-out amount, new rate, and term — the calculator returns your new loan, monthly payment, new LTV, and the most cash you can take at the 80% cap — updated live, as you type.
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Estimates only, based on the values you enter. Not financial advice.
Results are estimates. Consult a professional.
What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a new, larger loan and hands you the difference in cash. You borrow what you still owe on your existing mortgage, plus an extra slice of your home's equity, and pocket that extra amount at closing. Unlike a second mortgage, it leaves you with a single loan and a single payment. Borrow $300,000 against a $400,000 home you owe $250,000 on, and $50,000 lands in your account — exactly the figure this cash-out refinance calculator returns the moment you enter your home value, balance, and cash-out amount.
Cash-out refinance vs. a rate-and-term refinance
A rate-and-term refinance swaps your loan for a better rate or term but keeps the balance roughly the same — you take no cash. A cash-out refinance deliberately increases the balance so you can withdraw equity. That extra borrowing is why cash-out loans carry slightly higher rates and tighter limits: the lender is now lending against more of your home.
How to calculate a cash-out refinance
Calculating a cash-out refinance is a four-step process. The calculator does it live as you type, but here is the math behind each number:
- Find your new loan amount. Add the cash you want to the balance you still owe. A $250,000 balance plus $50,000 cash is a $300,000 new loan.
- Check the loan-to-value ratio. Divide the new loan by your home's value. A $300,000 loan on a $400,000 home is a 75% LTV — comfortably inside the usual 80% cap.
- Amortize the new payment. Apply the new rate and term to the new balance: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months.
- Compare it to your current payment. A bigger balance usually means a bigger payment — unless your new rate is low enough to offset the extra you borrowed.
The inputs explained: value, balance, rate, and term
Five inputs drive every cash-out refinance figure. Getting each one right — especially an honest home value — is what separates a usable estimate from a misleading one.
A worked example using the cash-out refinance calculator
Priya owns a home worth $400,000 and owes $250,000 on a mortgage at 4.5%. She wants $50,000 to wipe out high-interest credit-card debt. Here is how she uses the calculator — new loan first, then the LTV check, then the new payment, then the comparison.
Step 1 — Build the new loan
She enters a $400,000 home value, a $250,000 balance, and $50,000 of cash out. The calculator adds the cash to the balance for a $300,000 new loan.
| Input | Value |
|---|---|
| Home value | $400,000 |
| Current balance | $250,000 |
| Cash out | $50,000 |
| New loan amount | $300,000 |
Step 1: a $250,000 balance plus $50,000 cash becomes a $300,000 loan.
Step 2 — Check the LTV against the 80% cap
The calculator divides the $300,000 loan by the $400,000 value: a 75% LTV. Because that sits under the 80% ceiling most lenders set, Priya's cash-out amount is approved with room to spare — she could have taken up to $70,000.
Step 3 — Amortize the new payment
She enters a 6.5% rate and a 30-year term. The calculator amortizes the $300,000 loan to about $1,896 a month in principal and interest.
| New loan | Rate | Term | Monthly P&I |
|---|---|---|---|
| $300,000 | 6.5% | 30 yrs | $1,896 |
Step 3: the new $300,000 loan at 6.5% over 30 years.
Step 4 — Compare it to the current payment
Now see whether it is the right tool. Priya's payment rose because she borrowed more at a higher rate. Whether that trade-off makes sense depends on what the cash is for — and on how a cash-out refinance stacks up against a HELOC or a home equity loan. The next sections cover both.
How much cash can you take out? The 80% LTV cap
Most lenders cap a cash-out refinance at 80% loan-to-value — meaning your new loan can be no larger than 80% of your home's appraised value, and you must keep at least 20% equity behind. Your maximum cash is whatever is left after that ceiling pays off your current balance.
| Home value | Current balance | 80% ceiling | Max cash out |
|---|---|---|---|
| $300,000 | $180,000 | $240,000 | $60,000 |
| $400,000 | $250,000 | $320,000 | $70,000 |
| $500,000 | $275,000 | $400,000 | $125,000 |
| $600,000 | $450,000 | $480,000 | $30,000 |
Max cash out = home value × 0.80 − current balance. The calculator floors this at $0 if you already owe more than 80%.
Cash-out refinance vs. HELOC vs. home equity loan
A cash-out refinance is one of three main ways to turn equity into cash. The other two — a home equity loan and a home equity line of credit (HELOC) — leave your first mortgage untouched and add a second loan on top. Which one wins depends almost entirely on your current mortgage rate.
| Feature | Cash-out refinance | Home equity loan | HELOC |
|---|---|---|---|
| Structure | Replaces your first mortgage with a larger one | Second loan on top of your mortgage | Revolving credit line on top of your mortgage |
| Cash delivery | Lump sum at closing | Lump sum at closing | Draw as needed during the draw period |
| Rate type | Usually fixed | Fixed | Usually variable |
| Affects first mortgage rate? | Yes — you give up your old rate | No — first mortgage untouched | No — first mortgage untouched |
| Typical closing costs | 2%–5% of the new loan | Lower; some none | Lower; some none |
| Best when | Your current rate is high and you want one payment | You have a great first-mortgage rate to protect | You want flexible, draw-as-you-go access |
All three are typically capped near 80%–85% combined LTV. A HELOC and a home equity loan use combined LTV (CLTV) across both liens.
The deciding question is simple: is your current mortgage rate higher or lower than today's rates? If it is higher, a cash-out refinance lets you reset the whole loan to a better rate. If it is lower — say you locked a 3% mortgage — a refinance would throw that rate away, so a home equity loan or HELOC that leaves your first mortgage alone is almost always cheaper.
Cash-out refinance costs and the break-even point
A cash-out refinance is not free. Closing costs run 2%–5% of the new loan — lender fees, appraisal, title and settlement charges, recording fees, prepaid interest, and any discount points. On a $300,000 loan that is roughly $6,000 to $15,000, paid upfront or rolled into the balance.
When a refinance does lower your rate, the break-even point is how long it takes the monthly savings to recover those costs. Drop your payment $200 a month after $6,000 in costs and you break even in 30 months — stay past that and the refinance pays off. A widely cited rule of thumb: a refinance is usually worth it when the new rate is at least 0.5%–0.75% below your current rate and you plan to stay in the home past break-even.
When does a cash-out refinance make sense?
A cash-out refinance is a powerful tool and a real risk: you are converting unsecured goals into debt secured by your home, which can be foreclosed if you cannot pay. It tends to make sense in a few specific situations:
- Current rates are below your mortgage rate. You get the cash and a cheaper loan at the same time — the cleanest case for refinancing.
- You are consolidating high-interest debt. Swapping 22% credit-card debt for a single-digit mortgage rate can save thousands, provided you do not run the cards back up.
- You are funding value-adding home improvements. Interest may be tax-deductible when the cash is used to buy, build, or substantially improve the home — and the work can raise the value behind the loan.
- You want one payment instead of two. A single first mortgage is simpler than juggling a mortgage plus a HELOC.
Data sources and methodology
The 80% LTV cap and cash-out rules come from the agencies that set them: Fannie Mae and Freddie Mac for conventional cash-out refinances, the FHA Single Family Housing Policy Handbook (80% maximum LTV on FHA cash-out), and the VA cash-out program (up to 100% LTV for eligible veterans). Closing-cost ranges of 2%–5% reflect published lender and industry estimates. Tax treatment of cash-out interest follows IRS Publication 936 — interest is deductible only when the funds buy, build, or substantially improve the home that secures the loan. The calculator uses the standard amortization identity payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) and new LTV = new loan ÷ value × 100.
Consumer Financial Protection Bureau — cash-out refinance and home equity options.Frequently asked questions about the free cash-out refinance calculator
About this cash-out refinance calculator
This cash-out refinance calculator runs entirely in your browser. Every figure you enter stays on your device — nothing is sent to a server, logged, or shared. It adds your cash-out amount to your current balance for the new loan, amortizes that balance at your new rate and term for the monthly payment, divides by your home value for the new LTV, and applies the 80% cap to show your maximum cash out, updating instantly as you type.
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