Cash-Out Refinance Calculator

Calculate how much cash you can access from your home equity through a cash-out refinance. See your new payment, total costs, and compare with your current mortgage.

Cash-Out Details

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Ready to Calculate

Enter your home value, current mortgage details, and desired cash-out amount to see your new loan terms.

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Pro Tip

Keep your new LTV below 80% to avoid PMI. If your cash-out would push LTV above 80%, consider taking less cash or using a HELOC instead for part of the amount.

Compare HELOC Options →

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How Cash-Out Refinancing Works

A cash-out refinance allows homeowners to tap into their home equity by replacing their existing mortgage with a new, larger loan. The difference between the new loan amount and the current mortgage balance is paid to you in cash at closing.

For example, if your home is worth $500,000 and you owe $250,000, you have $250,000 in equity. With a cash-out refinance, you might take a new loan of $350,000, pay off the existing $250,000 balance, and receive $100,000 in cash (minus closing costs).

Common uses for cash-out refinance funds include home renovations (which can increase your home's value), consolidating high-interest debt, funding education, or making other investments. The advantage is typically a lower interest rate than credit cards, personal loans, or HELOCs.

The key trade-off is that you are increasing your mortgage balance and potentially extending your loan term, which means more total interest paid over time. It is essential to consider whether the cash-out funds will be used for something that provides a return greater than the cost of borrowing.

Cash-Out Refinance Formula

New Loan Amount

New Loan = Current Balance + Cash Out + Closing Costs

Where:

Current Balance = Remaining balance on your existing mortgage

Cash Out = Amount of cash you want to receive

Closing Costs = Fees for the new loan (if rolled in)

Example

For a $250,000 balance with $50,000 cash-out and $8,000 closing costs:

  • • New loan amount: $250,000 + $50,000 + $8,000 = $308,000
  • • New payment at 6.5% for 30 years: $1,946.83/mo
  • • LTV on $500,000 home: 61.6%
  • • Cash received: $50,000
  • • Remaining equity: $192,000

Frequently Asked Questions

What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan and your old balance is given to you as cash, which you can use for home improvements, debt consolidation, or other purposes.
How much cash can I take out?
Most lenders allow a maximum loan-to-value (LTV) ratio of 80% for a cash-out refinance. This means on a $500,000 home, the maximum loan amount would be $400,000. Your cash-out amount is limited to the difference between this and your current balance.
How are closing costs handled?
Closing costs for a cash-out refinance typically range from 2-5% of the new loan amount. They can be paid upfront or rolled into the loan. This calculator assumes costs are rolled into the new loan for a complete picture of total borrowing.
Is a cash-out refinance or HELOC better?
A cash-out refinance offers a single, fixed-rate loan but replaces your existing mortgage. A HELOC provides a flexible credit line on top of your mortgage. Cash-out refinances are often better for large, one-time needs, while HELOCs suit ongoing or smaller needs.
What are the tax implications?
Interest on cash-out refinance funds may be tax-deductible only if the funds are used for home improvements. Interest on funds used for other purposes (like debt consolidation or investments) is generally not deductible. Consult a tax professional for your specific situation.