Cash-Out Refinance Calculator
See how much cash you could take out of your home, what actually reaches you after closing costs, your new payment and loan-to-value — and whether refinancing beats keeping your mortgage and adding a second loan.
Free to use No sign-up needed Updates as you type
Default interest rate: 7.18% — Freddie Mac 30-year fixed average, week of Nov 5, 2026. Enter the rate from your own Loan Estimate.
How the cash-out refinance calculator works
A cash-out refinance replaces your mortgage with a larger one and pays you the difference at closing. Three numbers get mixed up, so this calculator keeps them apart: the cash out (the extra you borrow beyond what the new loan pays off), the cash in hand (what actually reaches you once closing costs come out) and the new loan itself. The most you can take is set by a loan-to-value cap — 80% of the home's value for a conventional or FHA cash-out refinance, up to 100% for a VA cash-out refinance — minus everything the new loan has to pay off. Pick the loan type and the calculator adds the VA funding fee or FHA's mortgage insurance.
Whether it is worth doing depends mostly on the rate you already have, because the new rate applies to your whole balance, not just the cash. So the calculator also prices the alternative: keep your current mortgage and borrow the same cash as a fixed second loan. It compares the two over five or ten years, or until both are paid off, counting payments, closing costs and what you would still owe, and shows the current-rate break-even where the monthly payments cross.
Worked example: with home value of $450,000, current mortgage balance of $250,000 and cash you want to take out of $50,000, the cash-out refinance calculator shows cash in hand of $41,000.
- Most cash at 80% LTV
- $99,200
- New monthly payment
- $2,032.30
- New loan-to-value
- 66.7%
- Closing costs
- $9,000
| Cash out | Cash in hand |
|---|---|
| $25,000 | $16,750 |
| $50,000 | $41,000 |
| $75,000 | $65,250 |
| $100,000 | $89,500 |
Home value $450,000, $250,000 owed, closing costs 3% of the new loan taken from the cash.
The formula
Maximum new loan = home value × loan-to-value cap. Maximum cash out = maximum loan − mortgage balance − other loans paid off; when closing costs are added to the loan, the maximum loan is first reduced by the cost share. New loan = payoff + cash out, divided by (1 − cost share) when costs are added to the loan. Closing costs = cost share × new loan. Cash in hand = cash out − closing costs when the costs come out of your cash; otherwise it equals the cash out. Comparison at a horizon = (current-mortgage and second-loan payments + their costs + what you'd still owe on both) − (cash-out payments + costs + what you'd still owe). The break-even current rate is the rate at which your current payment plus the second-loan payment equals the cash-out payment.
How every calculator here computes, what it assumes and how the defaults stay current: our methodology.
- Loan-to-value caps follow the program rules (conventional and FHA 80%, VA up to 100%) for a primary home; lenders can set lower caps, and second homes and rentals get less.
- Closing costs are the same share of each new loan on both routes. Your quotes may differ — home equity lines in particular often price their fees differently.
- The second loan is modeled as a fixed-rate home equity loan, by default at the prime rate plus 1.5 points. A HELOC's rate floats, so its real cost can rise.
- Rates stay fixed for the full term. A cash-out refinance often prices a little above the average purchase rate shown by default.
- Taxes, insurance and the value of money over time are left out; the comparison adds up dollars paid and still owed without discounting.
- Program fees follow agency rules: the VA funding fee is financed inside the 100% limit, while FHA adds its 1.75% upfront premium on top of the 80% limit and charges 0.50% a year for 11 years on most loans.
Cash-out refinance or home equity loan: which costs less at your rate
The deciding number is the rate you already have, because a cash-out refinance reprices your whole balance. Example: a $450,000 home, $250,000 owed with 25 years left, and $41,000 in hand either way, as a 30-year cash-out refinance at today's 7.18% average or a 20-year home equity loan at 8.50%, with 3% closing costs on both.
| Your current rate | Payment now | Cash-out: new payment | Keep + home equity loan | Cheaper after 10 years (paid + owed) |
|---|---|---|---|---|
| 3.00% | $1,185.53 | $2,032.30 | $1,552.34 | Second loan by $114,857 |
| 4.00% | $1,319.59 | $2,032.30 | $1,686.40 | Second loan by $92,041 |
| 5.00% | $1,461.48 | $2,032.30 | $1,828.29 | Second loan by $68,603 |
| 6.00% | $1,610.75 | $2,032.30 | $1,977.57 | Second loan by $44,621 |
| 7.00% | $1,766.95 | $2,032.30 | $2,133.76 | Second loan by $20,174 |
On monthly payment, the two routes cost the same when your current rate is about 6.36%; below it, keeping your loan and adding a second one costs less each month. Counting what you would still owe after 10 years, the second loan comes out ahead in every row, even where the cash-out payment is lower, because the refinance restarts a 30-year term on the whole balance. The home equity loan rate is an estimate (the prime rate plus 1.5 points), so enter your own quotes in the calculator above.
Cash-out refinance vs. home equity loan vs. HELOC
Three ways to turn equity into cash. The first replaces your mortgage; the other two leave it alone and add a second loan.
| Cash-out refinance | Home equity loan | HELOC | |
|---|---|---|---|
| Your first mortgage | Paid off and replaced | Kept, rate unchanged | Kept, rate unchanged |
| Rate | Today's first-mortgage rate (7.18% average) on the whole balance | Fixed, usually higher than a first mortgage | Variable, tied to the prime rate |
| How you get the money | Lump sum at closing | Lump sum at closing | Draw as needed during the draw period |
| Payments | One new payment | Two payments: your mortgage + the second loan | Interest-only on what you draw, then principal too |
| Closing costs | On the whole new loan | On the second loan only | Often low; some lenders charge annual fees |
| Best when | Today's rate is at or below yours | Your rate is well below today's and you need a set amount | Costs come in stages (a phased remodel, tuition) |
| Full guide | Cash-out refinance | Home equity loan | HELOC |
Don't refinance a low first mortgage just to reach your equity. When your current rate is the lower one, a home equity loan or HELOC is usually the cheaper path; a cash-out refinance wins when today's rates have fallen to or below yours, or when you want one payment.
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, usually at a higher rate but on a much smaller amount.
If your current rate is well below today's, the second loan usually costs less; the comparison above shows the crossover for your numbers.
Why can't I borrow more than 80% of my home's value?
For conventional loans the 80% cash-out limit is a program rule, and FHA applies the same cap; the 20% you keep is the lender's cushion if prices fall.
VA cash-out loans are the exception, allowing up to 100% for eligible borrowers, though many lenders stop lower. If you need more than the cap allows, a smaller cash-out or a second loan are the usual options.
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 my information saved or shared?
No. Every calculation runs entirely in your browser. We never store, transmit or sell the numbers you enter.
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.
How do you calculate a cash-out refinance?
Multiply the home’s value by the loan-to-value cap, subtract what you owe, then subtract closing costs.
A $450,000 home at 80% allows a $360,000 loan; minus a $250,000 balance that is $110,000 of cash out, and minus 3% closing costs on the $360,000 loan ($10,800) about $99,200 in hand.
Can you take out 100% of your home equity with a cash-out refinance?
Not with a conventional or FHA loan: both cap the new loan at 80% of the home’s value, so at least 20% stays as equity. VA cash-out loans allow up to 100% for eligible borrowers, though many lenders cap lower. Switch the loan type above to see the most cash at each limit.
Is a cash-out refinance worth it?
It depends mostly on the rate you already have. The new rate applies to your whole balance, so if your current rate is well below today’s, keeping it and borrowing the cash as a second loan usually costs less.
The calculator compares both routes over 5 or 10 years, counting closing costs and what you would still owe.
Sources
How the figures on this site are calculated and tested: methodology · editorial policy.
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