Mortgages

Cash-Out Refinance Calculator

Calculate net cash proceeds from refinancing your mortgage to pull home equity, and see your new monthly mortgage payment.

What this calculator does

The Cash-Out Refinance Calculator estimates your result instantly from the values you enter, using standard mortgages formulas. Calculate net cash proceeds from refinancing your mortgage to pull home equity, and see your new monthly mortgage payment. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

About Cash-Out Refinance Calculator

The Cash-Out Refinance Calculator calculates net cash-in-hand proceeds when replacing your existing mortgage with a larger loan up to 80% Loan-to-Value (LTV), accounting for payoff of your current mortgage and closing fees.

Formula & Mathematical Calculation

Max New Loan (80% LTV) = Appraised Home Value × 0.80

Net Cash Out = Max New Loan - Current Mortgage Payoff - Closing Costs

Calculation Example

Example: Home Value: $400,000 | Current Loan Payoff: $200,000. Max 80% Loan = $320,000. Closing Costs = $6,000. Net Cash to Borrower = $114,000.

Key Benefits

  • Calculates maximum allowable cash-out under standard 80% LTV limits
  • Computes new monthly mortgage payments on the larger loan balance
  • Itemizes closing fees and current loan payoff deductions
  • Compares cash-out refinance vs. taking a second mortgage (HELOC)
  • Ideal for debt consolidation and home improvement funding

How to Use this Calculator

  1. Enter Current Home Market Value
    Input appraised property value.
  2. Enter Current Mortgage Balance
    Input payoff amount for existing home loan.
  3. Specify New Interest Rate & Term
    Enter new refinance APR and term (15 or 30 years).
  4. Calculate Cash-Out Proceeds
    Click Calculate to view net cash payout and new monthly payment.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • Cash-Out Refinance Calculator produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

Conventional lenders cap cash-out refinances at 80% Loan-to-Value (LTV), meaning you must retain at least 20% equity in the property after drawing cash proceeds. FHA cash-out refinances are capped at 80%, while VA loans allow up to 90% to 100%.

Cash-out refinance proceeds are treated as borrowed loan funds, not taxable income. You do not pay capital gains or income tax on cash drawn from equity, though interest deductibility depends on whether funds are used for capital home improvements.

If your primary mortgage carries a very low fixed interest rate (e.g., 3%), a second lien (HELOC or home equity loan) is often preferable to a cash-out refinance because it preserves your ultra-low first mortgage rate on the bulk of your debt.

Closing costs typically total 2% to 5% of the new overall loan amount, including title insurance, origination fees, appraisal, and county recording taxes, which are deducted from your net cash payout.

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Next step: browse the full Mortgages calculators or read the related guides for context before you decide.