About the Cash-Out Refinance Calculator
This cash-out refinance calculator estimates how much of your home equity you can turn into cash by replacing your mortgage with a larger one. It applies your lender’s maximum loan-to-value (LTV) ratio to the home’s current value, subtracts what you still owe and any closing costs you roll into the loan, and shows the most cash available along with the new loan amount and payment.
Homeowners use cash-out refinancing to fund renovations, consolidate high-interest debt, pay for education or build a cash reserve. Because the whole mortgage is replaced, the calculator also compares your new payment with your current one — important if your existing rate is lower than today’s rates, in which case a home equity loan or HELOC may cost less.
Most conventional cash-out refinances cap LTV at 80% of the appraised value; VA loans can go higher and FHA typically 80%. The estimate assumes fixed rates and does not include taxes, insurance or PMI.
With the default inputs, the cash you receive is $60,000.00. Change any value above to recalculate instantly.
How to use the cash-out refinance calculator
- 1Enter your home’s current market value and your mortgage payoff balance.
- 2Enter your current rate and years left so the payments can be compared.
- 3Enter the cash you want and the lender’s maximum LTV (80% is typical).
- 4Enter the new rate, term and closing costs, and choose whether to finance the costs.
- 5Review the cash available, new LTV and change in monthly payment.
Formula and method
The lender’s maximum loan is the appraised value times the maximum LTV. Subtracting the current payoff balance and any closing costs you roll into the loan gives the most cash you can take. The cash you ask for is capped at that amount; if you pay closing costs out of pocket they are not added to the loan but reduce the net cash you keep.
The new monthly payment uses the standard amortization formula M = L × r(1+r)^n ÷ ((1+r)^n − 1) on the new loan. The current payment is calculated the same way from your balance, current rate and remaining years so the two can be compared. Payments exclude property tax, insurance and any mortgage insurance.
- LTV
- Loan-to-value ratio: loan ÷ home value
- L
- New loan amount
- r
- New monthly interest rate
- n
- New loan term in months
Worked examples
$450k home, $250k owed, $60k cash out
At 80% LTV the maximum loan is $360,000. After paying off $250,000 and rolling in $7,000 of costs, up to $103,000 is available. Taking $60,000 makes the new loan $317,000, costing $2,056.06 a month at 6.75% — $666 more than the current 4.5% payment.
Paying closing costs from the cash
If the $7,000 of closing costs is not financed, the new loan is $310,000 and the payment is $2,010.65, but you net only $53,000 of the $60,000 after paying the costs.
Asking for more than the LTV allows
Requesting $150,000 exceeds the 80% LTV limit, so cash is capped at $103,000 and the new loan hits the $360,000 maximum, with a payment of $2,334.95.
Frequently asked questions
How much cash can I get from a cash-out refinance?+
Usually up to 80% of your home’s appraised value minus what you owe and any financed costs. On a $400,000 home with a $200,000 balance, the 80% limit is $320,000, so roughly $120,000 before costs.
Is a cash-out refinance or a HELOC better?+
If today’s rates are lower than your current rate, a cash-out refinance can lower your rate and give you cash. If your existing rate is lower, a HELOC or home equity loan borrows only the new money at the higher rate and keeps your cheap first mortgage.
Is cash-out refinance money taxable?+
No. Loan proceeds are borrowed money, not income. Interest on the cash portion may be deductible only if you itemize and use it to buy, build or substantially improve the home securing the loan.
What LTV do lenders allow for cash-out refinancing?+
Conventional loans generally allow up to 80% LTV on a primary residence, FHA cash-out loans up to 80%, and VA cash-out loans up to 90% or even 100% for eligible borrowers. Investment properties usually have lower limits.
How long does a cash-out refinance take?+
Typically 30 to 45 days, including the application, appraisal, underwriting and closing. For a primary residence, federal rules give you a three-day right of rescission after signing before funds are released.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.