Cash-Out Refinance Calculator

This cash-out refinance calculator shows how much equity you can access. Enter home value and mortgage balance to see your available cash instantly.

Cash-Out Refinance Calculator | Home Equity Cash Analysis
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Cash-Out Refinance Options
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Cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. Often used for home improvements, debt consolidation, or major expenses.

Cash-Out Refinance Analysis
💰 Available Cash: —
Current Home Value—
Current Mortgage Balance—
Current Equity—
Maximum Loan (at LTV limit)—
Maximum Cash-Out Available—
Requested Cash-Out Amount—
New Loan Amount (Balance + Cash-Out + Fees)—
New Loan-to-Value (LTV)—
Net Cash Received—
Current Monthly Payment—
New Monthly Payment—
Monthly Payment Change—
Current vs. Cash-Out Refinance Comparison
YearCurrent BalanceNew BalanceCurrent PaidNew PaidDifference

Enter loan details to view comparison schedule.

Year-by-year remaining balance comparison between current and cash-out refinanced loans.

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Hasnain Khan

Co-Founder, Techraxy

Hasnain Khan is a digital tools developer and Co-Founder of Techraxy, a platform dedicated to building modern web-based calculators and utility tools. He focuses on tool optimization, website performance, and creating accessible user experiences across categories like automotive, finance, construction, and everyday utilities.

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Introduction to Cash-Out Refinance Calculator

A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. It allows you to tap into your home equity for debt consolidation, home improvements, investments, or other financial needs. For example, if your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. With a cash-out refinance at 80% LTV, you could potentially access up to $100,000 in cash. This Cash-Out Refinance Calculator helps you determine how much cash you can access, your new monthly payment, and the total cost of refinancing. Toolraxy built this calculator to help homeowners make informed decisions about using their home equity.

How to Use This Cash-Out Refinance Calculator

              1. Enter your Home Value (current market value)

              2. Enter your Current Mortgage Balance (what you still owe)

              3. Enter your New Loan Amount (target total loan)

              4. Enter the New Interest Rate (rate offered for refinance)

              5. Enter the New Loan Term (15, 20, or 30 years)

              6. Enter Closing Costs (fees for the new loan)

              7. Enter the Maximum LTV (typically 80%)

              8. Click Calculate to see your cash-out amount

              9. Review your new payment, cash available, and total costs

Formula Section

Current home equity:

Home Equity = Home Value – Current Mortgage Balance

Maximum loan amount (based on LTV):

Max Loan Amount = Home Value × (Max LTV ÷ 100)

Maximum cash-out amount:

Max Cash Out = Max Loan Amount – Current Mortgage Balance

New monthly payment:

New Payment = New Loan Amount × [ r(1+r)^n ] / [ (1+r)^n – 1 ]

Cash available to borrower:

Cash Available = New Loan Amount – Current Mortgage Balance – Closing Costs

New LTV:

New LTV = (New Loan Amount ÷ Home Value) × 100

Total interest over new loan term:

Total Interest = (New Payment × n) – New Loan Amount

Payment change:

Payment Change = New Payment – Current Payment

Where:

  • r = Monthly interest rate (new rate ÷ 12 ÷ 100)

  • n = New loan term in months

  • LTV = Loan-to-value ratio (new loan ÷ home value)

  • CLTV = Combined LTV (if second mortgage exists)

Real-Life Examples Section

  • Example scenario:

    • Home value: $500,000

    • Current mortgage balance: $300,000

    • New interest rate: 6.5%

    • New loan term: 30 years

    • Closing costs: $6,000

    • Maximum LTV: 80%

    Calculations:

    • Home equity: $500,000 – $300,000 = $200,000

    • Max loan amount (80% LTV): $500,000 × 80% = $400,000

    • Max cash-out: $400,000 – $300,000 = $100,000

    • New loan amount (target): $400,000

    • Cash available: $400,000 – $300,000 – $6,000 = $94,000

    • New monthly payment (P&I): $2,528

    • New LTV: ($400,000 ÷ $500,000) × 100 = 80%

    • Total interest over 30 years: ($2,528 × 360) – $400,000 = $510,000

FAQs

1. What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. It allows you to convert home equity into usable cash for various purposes.

2. How much cash can I get from a cash-out refinance?
The amount depends on your home value, current mortgage balance, and lender’s LTV limit (typically 80%). The maximum is generally 80% of your home value minus your current mortgage balance.

3. What is the difference between cash-out refinance and home equity loan?
A cash-out refinance replaces your primary mortgage with a larger one. A home equity loan is a second mortgage on top of your existing loan. Both access equity, but they have different structures and rates.

4. What is the difference between cash-out refinance and HELOC?
A cash-out refinance provides a lump sum at closing with a fixed rate. A HELOC is a revolving credit line with variable rates. Cash-out refinance is better for large, one-time expenses; HELOCs are better for ongoing needs.

5. What is the maximum LTV for a cash-out refinance?
Most lenders allow up to 80% LTV for conventional cash-out refinances. FHA cash-out refinance allows up to 80%. VA cash-out refinance allows up to 100% for qualified veterans.

6. What are the closing costs for a cash-out refinance?
Closing costs typically range from 2% to 5% of the loan amount. On a $400,000 loan, expect $8,000 to $20,000. Common fees include origination, appraisal, title, and recording fees.

7. Is cash-out refinance interest tax deductible?
Interest is tax deductible only if the funds are used for home improvements. Interest on cash used for debt consolidation, vacations, or other purposes is generally not deductible. Consult a tax professional.

8. How does my credit score affect cash-out refinance?
A higher credit score qualifies you for better rates and terms. Most lenders require a minimum score of 620 for conventional cash-out refinance. Higher scores (740+) get the best rates.

Disclaimer

This Cash-Out Refinance Calculator is provided for educational and planning purposes only. Results are based on standard mortgage formulas and the numbers you enter. Actual cash-out refinance terms vary by lender, credit score, home equity, and loan type. This tool does not constitute financial or mortgage advice. Consult a licensed mortgage lender or financial advisor before making refinancing decisions. Toolraxy is not responsible for any actions taken based on these calculations.

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