Cash-Out Refinance Calculator
Refinance for more than you owe and pocket the difference. See your new payment, the cash in hand and your new loan-to-value.
How the cash-out refinance calculator works
A cash-out refinance replaces your mortgage with a larger one and hands you the difference in cash at closing. The calculator sizes the new loan as your current balance plus the amount you withdraw, then prices the payment at the rate and term you enter.
The headline figures are the net cash you actually pocket, your withdrawal minus closing costs, and your new loan-to-value ratio, since most lenders cap cash-out borrowing near eighty percent of the home's value.
Worked example: with home value of $480,000, current loan balance of $250,000 and cash to take out of $60,000, the cash-out refinance calculator shows new monthly payment of $2,060.36.
- Cash to you
- $54,000
- New loan amount
- $310,000
- New loan-to-value
- 64.6%
- Total interest
- $431,728
| Cash to take out | New monthly payment |
|---|---|
| $25,000 | $1,827.74 |
| $50,000 | $1,993.89 |
| $100,000 | $2,326.21 |
| $150,000 | $2,658.52 |
The formula
The new loan equals your remaining balance plus the cash withdrawn, and its monthly payment follows the standard amortization formula on that amount, rate, and term. Net cash subtracts closing costs from the withdrawal, while loan-to-value divides the new loan by the appraised home value.
- Closing costs are deducted from your cash proceeds rather than rolled into the loan, which would raise the balance.
- Lenders are assumed to permit borrowing up to roughly eighty percent loan-to-value; tighter caps reduce available cash.
- The home value entered reflects a current appraisal, the figure the lender uses to set your maximum loan.
- The rate is fixed and quoted for the full term; a cash-out often carries a slightly higher rate than a no-cash refinance.
- Property taxes and homeowners insurance are excluded, since escrow is handled separately from principal and interest.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender or a licensed advisor.
Questions about the cash-out refinance calculator
How is a cash-out refinance different from a home equity loan?
A cash-out refinance replaces your entire mortgage with one larger loan at a single new rate. A home equity loan leaves your first mortgage untouched and adds a second loan on top, often at a higher rate.
Cash-out usually wins when current rates beat your existing one; a second loan preserves a low rate you already hold.
Why do lenders limit cash-out borrowing to about eighty percent of value?
The retained equity is the lender's safety margin. Leaving roughly twenty percent untouched cushions them against a price decline, so the loan stays recoverable if they ever foreclose.
Borrowing above that line is sometimes possible but typically triggers mortgage insurance, a higher rate, or both, which the calculator does not add automatically.
Is the cash I receive treated as taxable income?
No. The proceeds are borrowed money you must repay, not earnings, so they are not taxed when you receive them.
Deducting the interest is a separate question: it generally qualifies only when the funds improve the home securing the loan, not when used for a car, tuition, or paying off cards. Confirm specifics with a tax professional.
Is the Cash-Out Refinance Calculator free to use?
Yes. Every calculator on MortgageLoansCalculator is completely free, with no sign-up, login or paywall. Run as many scenarios as you like.
How does a cash-out refinance work?
It replaces your mortgage with a larger one and hands you the difference in cash, at today’s rate on the whole balance.
It works best when today’s rate is at or below your current one; if your rate is lower, a home equity loan is usually cheaper.
How much can I cash out when I refinance?
Most lenders let you borrow up to 80% of your home’s value across all mortgages. On a $400,000 home with a $250,000 balance, that is roughly $70,000 of accessible cash — the calculator above shows your figure and the new payment.
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