Cash-Out Refinance Calculator
Use this cash-out refinance calculator to estimate how much equity may be accessible as cash at a maximum loan-to-value ratio you choose. Enter your home value, current mortgage balance, selected maximum LTV, new rate, term, and closing costs to see gross cash-out, estimated cash after costs, and the principal-and-interest payment on the resulting new mortgage.
This is a planning tool, not an approval estimate. The 80% default is editable and is not a universal lender limit. Actual appraised value, LTV limits, rates, fees, property requirements, occupancy rules, loan programs, and underwriting can vary.
Results are planning estimates only. Cash-out capacity is not guaranteed, and actual appraised value, rates, fees, LTV limits, loan programs, property rules, occupancy, and underwriting can vary.
How to use this calculator
- Enter a reasonable current home-value estimate and the principal balance still owed on the current mortgage.
- Choose the maximum LTV you want to test. The editable 80% default is a planning assumption only; use a limit appropriate to the scenario you are researching.
- Enter an estimated fixed interest rate, the new loan term, and estimated closing costs.
- Review available equity, the estimated maximum new loan, gross cash-out, and cash after closing costs.
- Review the resulting LTV, estimated monthly principal and interest, total interest, and financing-cost summary for the new mortgage.
If the maximum new loan at the selected LTV cannot cover the current mortgage balance, the calculator shows $0 cash and clearly marks the scenario as infeasible for cash-out planning. Treat every result as an estimate rather than a lender approval or quote.
How it works
This calculator estimates how much equity may be accessible through a cash-out refinance at the maximum LTV you select, then estimates the principal-and-interest payment and total interest on the resulting new mortgage.
It is designed for cash-out capacity planning, not for comparing the replacement loan with your current mortgage or predicting lender approval.
Cash-out and payment formulas
Maximum new loan = Home value × Maximum LTV; Estimated net cash = max(0, Maximum new loan − Current mortgage balance − Closing costs); Monthly P&I = P × r × (1 + r)n / ((1 + r)n − 1)
Main inputs in the estimate
- P
- Estimated maximum new loan based on the home value and selected maximum LTV
- r
- Monthly rate derived from the new annual interest rate (annual rate ÷ 12 ÷ 100)
- n
- Total number of monthly payments in the new mortgage term
How cash and financing costs are estimated
- Available home equity equals home value minus the current mortgage balance; it may be negative when the balance exceeds the entered value.
- Gross cash-out is the estimated maximum new loan minus the current mortgage balance, floored at zero. If the maximum new loan cannot cover the current balance, the scenario is identified as infeasible for cash-out planning.
- Entered closing costs reduce estimated cash received. If they are paid separately out of pocket, actual cash received may be higher; lender-specific treatment of financed costs is not modeled.
- At a 0% rate, monthly principal and interest equals the new loan amount divided by the number of monthly payments.
- Estimated financing cost is total interest on the new loan plus entered closing costs. It is not a comparison with keeping the current mortgage.
Assumptions and limitations
- Available home equity equals the home value entered minus the current mortgage balance and may be negative when the balance exceeds the value.
- The estimated maximum new loan equals home value multiplied by the selected maximum LTV. The 80% default is a planning assumption, not a universal lender limit.
- Gross cash-out equals the estimated maximum new loan minus the current mortgage balance, floored at zero.
- Entered closing costs are treated as costs that reduce estimated cash received. If the borrower pays them separately out of pocket, actual cash received may be higher.
- The calculator does not model lender-specific treatment of financed closing costs or determine whether costs can be added to a loan.
- The new monthly payment and total-interest estimate include principal and interest only and assume a fixed rate with equal monthly payments over the new term.
- Estimated financing cost is total interest on the new loan plus entered closing costs. It is not savings or a cost difference compared with keeping the current mortgage.
- Actual appraised value, payoff amounts, rates, fees, LTV limits, loan programs, occupancy rules, property requirements, credit, and underwriting can differ from the assumptions entered.
Worked example
Suppose a homeowner enters:
- Home value:
$500,000 - Current mortgage balance:
$300,000 - Maximum LTV:
80% - New interest rate:
6.50% - New loan term:
30 years - Estimated closing costs:
$8,000
The estimated results are:
- Available home equity:
$200,000.00 - Estimated maximum new loan:
$400,000.00 - Gross cash-out before closing costs:
$100,000.00 - Estimated cash after closing costs:
$92,000.00 - Resulting LTV:
80.00% - Estimated new monthly principal and interest: about
$2,528.27 - Estimated total interest on the new loan: about
$510,177.95 - Estimated financing cost: about
$518,177.95, which is total interest plus the$8,000in entered closing costs
The financing-cost figure describes this new mortgage only. It is not a savings estimate or a comparison with keeping the current mortgage.
Choosing the right refinance calculator
Use the Loan-to-Value Calculator when your main question is current LTV, CLTV, equity, or the paydown needed for a target LTV. Use this calculator when the question is how much equity may be accessible as cash at a selected LTV and what the resulting new mortgage may look like.
For a full current-versus-new mortgage comparison using your current payment and remaining term, use the Mortgage Refinance Calculator. If you already know both payments and want a focused estimate of how long upfront costs may take to recover, use the Refinance Break-Even Calculator.
For the borrowing-choice context, read Cash-Out Refinance vs. Home Equity Loan and explore the Mortgage Refinance topic.
This calculator is for educational planning only. It does not provide a lender quote, approval guarantee, property appraisal, or personalized financial advice.
Frequently asked questions
How much cash could I get from a cash-out refinance?
The calculator multiplies the home value entered by your selected maximum LTV, then subtracts the current mortgage balance. The result is gross estimated cash-out before closing costs. Actual proceeds depend on the lender's appraisal, payoff amount, program limits, fees, and underwriting.
Is 80% the maximum LTV for every cash-out refinance?
No. The 80% default is only an editable planning assumption. Actual limits vary by lender, loan program, occupancy, property type, borrower qualifications, and underwriting.
How are closing costs handled?
Entered closing costs reduce the estimated cash received. If you pay them separately out of pocket, actual cash received may be higher. This calculator does not model lender-specific treatment of financed closing costs.
What if the current mortgage is above the maximum loan at my selected LTV?
The calculator shows $0 in cash available and identifies the scenario as insufficient at the selected LTV because the estimated maximum new loan would not fully cover the current mortgage balance.
What if closing costs are higher than the gross cash-out?
Estimated net cash is floored at $0. The result explains that the entered closing costs use up the available gross proceeds; it never shows negative cash received.
Does the monthly payment include taxes and insurance?
No. The payment estimate is principal and interest only on the estimated maximum new loan. Property tax, homeowners insurance, HOA, escrow adjustments, mortgage insurance, and other housing costs are not included.
Does this compare refinancing with keeping my current mortgage?
No. It estimates cash-out capacity and the resulting new mortgage. Use the Mortgage Refinance Calculator for a current-versus-new mortgage comparison that includes the current payment and remaining term.
Is the estimated maximum new loan guaranteed?
No. It is a planning estimate at the LTV selected, not a quote, preapproval, approval, or commitment to lend.
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