A cash-out refinance calculator shows how much equity you can access, your new monthly payment, and how long it takes to break even on closing costs versus your current loan.
Current Loan & New Loan Details
Current Loan
New Cash-Out Loan
How to Calculate a Cash-Out Refinance
This cash-out refinance calculator helps you analyze whether accessing home equity through a refinance makes financial sense given current rates and your specific situation.
The 80% LTV Rule
Most lenders cap cash-out refinances at 80% loan-to-value (LTV). On a $450,000 home, maximum new loan is $360,000 ($450K × 80%). If you owe $250,000, you can cash out up to $110,000 (minus closing costs). This preserves 20% equity and avoids PMI on the new loan.
Rate Trap Warning
If your current rate is 3-4% and today's rates are 6.5-7.5%, a cash-out refi will significantly increase your monthly payment — even on the existing balance. Consider a HELOC or home equity loan instead, which leaves your first mortgage intact at its lower rate.
Best Uses of Cash-Out Funds
High-return uses: home improvements that add value (kitchen, bathrooms, ADU), paying off high-interest debt (credit cards at 20%+ vs mortgage at 7%), or investing in income-producing assets. Poor uses: vacations, cars (depreciating assets), or discretionary spending that doesn't build wealth.
Frequently Asked Questions
Is this cash-out refinance calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
How much can I cash out in a refinance?
Most lenders allow cash-out up to 80% of your home's appraised value (20% equity must remain). For a $400,000 home with $200,000 remaining mortgage, maximum cash-out is $120,000 ($400K × 80% - $200K). VA loans allow up to 90% LTV for eligible veterans. FHA allows 80% LTV for cash-out.
What is the cash-out refinance break-even period?
Break-even is how long it takes for monthly savings to recover the closing costs. If closing costs are $6,000 and your payment decreases by $200/month, break-even is 30 months. If your payment increases (because you borrowed more), break-even is less relevant — focus on whether the cash use justifies the higher payment.
When does a cash-out refinance make sense?
Cash-out refinance makes financial sense when: the new rate is lower than or similar to your current rate, you need funds for high-return uses (home improvements, paying off high-interest debt), or consolidating debt at a lower rate. It rarely makes sense to cash out at a significantly higher rate just for discretionary spending.
What are typical closing costs for a cash-out refinance?
Closing costs for a cash-out refinance are typically 2-5% of the new loan amount — roughly $5,000-$12,000 for a $300,000 loan. This includes origination fees, appraisal ($400-$700), title insurance, recording fees, and prepaid interest. Some lenders offer no-closing-cost options that roll the fees into the rate.
How does a cash-out refinance affect my taxes?
Cash-out proceeds are not taxable income since it is debt, not income. However, the deductibility of mortgage interest may be limited. For cash-out used for home improvements, interest on up to $750,000 in combined mortgage debt is typically deductible. Cash-out used for other purposes (debt payoff, investments) may have different deductibility rules.