Cash-Out Refinance Calculator
See how much cash you could get from your home, your new loan amount, new monthly payment and total interest, before you talk to a lender.
What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a new, larger one. You use the new loan to pay off the old mortgage, and you receive the difference in cash. You can use that cash for home repairs, debt payoff or other costs, but you also take on a bigger loan against your home.
How this cash-out refinance calculator works
Enter your home value, your current balance, rate and years left, then the cash you want and the new loan terms. The calculator shows:
- New loan amount: current balance plus the cash you take out.
- Cash you receive: the cash amount minus closing costs, which are a percentage of the new loan.
- New and current monthly payment (principal and interest), and the difference.
- Loan-to-value (LTV): new loan divided by home value.
- Most cash you could take at the maximum LTV you enter.
- Total interest you would pay on the new loan.
Worked example
Home value $400,000, current balance $220,000 at 4% with 25 years left, and you want $50,000 in cash on a new 30-year loan at 6.5% with 3% closing costs.
- New loan: $220,000 + $50,000 = $270,000
- LTV: $270,000 / $400,000 = 67.5%
- Closing costs: 3% of $270,000 = $8,100, so you receive about $41,900
- New payment: about $1,707 a month, compared with about $1,161 now, which is about $545 more per month
- Total interest over 30 years: about $344,000
The rates here are examples. Replace them with real quotes from lenders.
Is a cash-out refinance a good idea?
It can make sense when the new rate is close to or lower than your current rate, or when you need a lump sum at a lower rate than a credit card or personal loan. It is harder to justify when your current rate is much lower than today’s rates, because you would replace your whole balance with a higher-rate loan, not just the new cash. Compare it with a HELOC, which borrows only the extra amount and leaves your first mortgage alone.
Things that affect approval
- Loan-to-value limits. Many lenders limit conventional cash-out refinances to about 80 percent LTV. Limits differ by lender and loan type.
- Credit score and income. Both affect your rate and whether you qualify.
- Closing costs. These can include appraisal, title and lender fees.
- Taxes and insurance. They are not in this calculator but are part of your real monthly cost.
This calculator gives estimates for education only and is not financial advice. Ask a lender or licensed adviser about your situation. See also is refinancing worth it.
Frequently asked questions
How much cash can I get from a cash-out refinance?
It depends on your home value and the maximum loan-to-value your lender allows. Multiply your home value by the LTV limit, for example 80 percent, then subtract your current mortgage balance. Closing costs reduce the cash you receive.
What is a good LTV for a cash-out refinance?
Many lenders cap conventional cash-out refinances at about 80 percent of the home value. A lower LTV usually helps you get a better rate. Limits vary by lender and loan type.
Does a cash-out refinance increase my monthly payment?
Usually yes, because the loan is larger and the rate may be higher than your current rate. The calculator shows the change in monthly principal and interest.
Are closing costs included?
Yes. The calculator takes closing costs as a percentage of the new loan and subtracts them from the cash you receive.
Is this calculator financial advice?
No. It gives estimates only. Real rates, fees, taxes and insurance will change your numbers, so ask a lender for a quote.
HELOC calculator · Mortgage payoff calculator · Debt consolidation calculator · Down payment calculator · All free calculators
Related: VA Loan Refinance Calculator