Finance
Cash-Out Refinance Calculator
A cash-out refinance replaces your mortgage with a bigger one: new loan = balance + cash + costs, capped at 80% of the home value. Enter your value, balance and rate to see the cash you can take, the new payment, and the loan-to-value.
Your home & current loan
$
$
%
yr
The new loan
$
%
yr
%
%
Cash in hand · new payment
$50,000
New payment $1,953.09/mo · 62% LTV
New loan amount
$309,000
New monthly payment
$1,953.09
Old monthly payment
$1,319.59
Payment change
+$633.50
Closing costs
$9,000
Max cash (80% LTV)
$150,000
Within the limit
You could take up to $150,000 at the 80% LTV cap. Refinancing resets the whole balance to the new rate, so weigh the higher rate on your old balance too.
Estimate only. A cash-out refinance replaces your whole mortgage — the new rate applies to the old balance too, not just the cash. Actual rates and limits depend on your lender and credit.
Try a scenario
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The basics
What is a cash-out refinance?
You swap your mortgage for a larger one and pocket the difference. Two limits shape how much cash you can get and what it costs.
new loan = balance + cash
You replace the whole mortgage
A cash-out refinance is not a second loan — it pays off your old one and starts fresh at the new rate on the entire balance, not just the cash you take.
$250,000 + $50,000 cash → $309,000 loan
capped at ~80% LTV
Equity sets the ceiling
Lenders make you keep about 20% equity, so the new loan tops out near 80% of the home's value. Your cash is that cap minus what you still owe.
Up to $150,000 on the example home
Method
How the cash and payment are worked out
Four steps from your equity to the new payment.
- 1
Check your available equity
Multiply the home value by the max LTV (usually 80%) and subtract your current balance — that is the most you can take.
$500,000 × 80% − $250,000 = $150,000 - 2
Build the new loan amount
The new loan is the current balance plus the cash you want plus any rolled-in closing costs.
$250,000 + $50,000 + $9,000 = $309,000 - 3
Price the new payment
Apply the level-payment formula at the new rate and term to the whole new balance.
M = P·i ÷ (1 − (1 + i)^−n) = $1,953.09 - 4
Compare to your current payment
The difference shows the real monthly cost of the cash — the new rate applies to the old balance too.
$1,953.09 − $1,319.59 = +$633.50
Worked examples
More cash, bigger payment
The $500,000 example at 6.50% over 30 years. Each extra dollar of cash raises the loan, the payment and the LTV.
| Cash out | New loan | New payment | New LTV |
|---|---|---|---|
| $0 | $257,500 | $1,627.58 | 52% |
| $25,000 | $283,250 | $1,790.33 | 57% |
| $50,000 | $309,000 | $1,953.09 | 62% |
| $100,000 | $360,500 | $2,278.61 | 72% |
| $150,000 | $412,000 | $2,604.12 | 82% ⚠ |
⚠ marks a loan above the 80% LTV cap. Max cash here is about $150,000.
Where it shows up
Why people cash out
Three common reasons — two sound, one risky.
add value
Home improvements
Using equity to improve the home can add value back and, for major work, is often the cheapest way to borrow a large sum.
Fund a renovation from equity
beat 20% APRs
Debt consolidation
Rolling high-rate card debt into a mortgage rate can cut the interest sharply — but it secures that debt against your home, so the stakes rise.
Swap card debt for a mortgage rate
think twice
Everyday spending
Cashing out for a car or a holiday finances a fleeting purchase over decades. Rarely worth the interest or the risk to your equity.
A 30-year loan for a short-lived buy
Reference
Three ways to tap home equity
General guidance, not a quote. Which fits depends most on your current mortgage rate.
| Option | Structure | Best when |
|---|---|---|
| Cash-out refinance | Replaces the whole mortgage | The new rate is near your current one |
| Home equity loan | Fixed second loan on top | Your first-mortgage rate is low |
| HELOC | Variable credit line on top | You want flexible, as-needed draws |
Worth knowing
Five things before you cash out
The cash is cheap to see and expensive to misuse.
the whole balance reprices
You reset your rate
Refinancing applies the new rate to your entire balance, not just the cash. Giving up a low rate to pull equity can cost far more than the cash is worth.
20% must stay
Equity floor
The 80% LTV cap means you cannot take all your equity. Plan around the ceiling before counting on a number.
closing costs recur
Refinancing is not free
You pay closing costs again — 2–5% of the loan. Rolling them in raises the balance and the payment.
secured by your home
The risk changes
Turning unsecured debt into mortgage debt lowers the rate but puts your home on the line if you cannot pay.
term resets too
The clock restarts
A new 30-year term can mean paying interest for longer overall, even at a similar rate. Check the total interest, not just the payment.
compare a second loan
A HELOC may be cheaper
If your current rate is low, a home equity loan or HELOC on top often beats refinancing the whole mortgage.
Quick chart
Max cash out at 80% LTV
The most cash available — 80% of the home value minus the balance — for common values and balances. A dash means no equity is available.
| Home value | Owe $150,000 | Owe $200,000 | Owe $250,000 | Owe $300,000 |
|---|---|---|---|---|
| $400,000 | $170,000 | $120,000 | $70,000 | $20,000 |
| $500,000 | $250,000 | $200,000 | $150,000 | $100,000 |
| $600,000 | $330,000 | $280,000 | $230,000 | $180,000 |
| $750,000 | $450,000 | $400,000 | $350,000 | $300,000 |
Max cash = home value × 80% − current balance. Before closing costs.
How we calculate this
The formulas and our assumptions
The new loan is a standard mortgage; the cash ceiling is a simple LTV subtraction.
max cash = value × maxLTV − balance
Available cash
The most you can take is the LTV cap on the home value, minus what you still owe. The default cap is 80%.
M = P·i ÷ (1 − (1 + i)^−n)
The new payment
The new payment prices the whole new balance — old balance plus cash plus rolled-in costs — at the new rate i over n months.
- Closing costs are rolled into the loan at the percent you set, not paid out of pocket.
- The new rate applies to the entire balance, not only the cash withdrawn.
- The LTV cap is a general 80%; some programs (VA, specialty) allow more.
- Home value is your estimate; a lender uses an official appraisal.
Where to get a cash-out refinance
Where to shop for the loan
Rows are ordered by borrower fit, not by any payout. Rates are ranges only; get an exact quote, because cash-out pricing depends on your credit, the LTV and the day.
| Where | Examples | Best for | Pricing |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing cash-out offers at once | Market range |
| Direct lender / bank | Rocket, Chase | An existing relationship | Market range |
| Credit union | Member-owned lenders | Lower fees on the refinance | Often below market |
| Mortgage broker | Independent brokers | Complex files, self-employed | Market range |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — cash-out refinances and tapping home equity.
- Standard 80% loan-to-value cash-out limit used by conventional lenders.
- Standard amortization formula for a fixed-rate, fully amortizing loan.
FAQ
Common questions
You replace your current mortgage with a larger one and take the difference in cash. The new loan is your current balance plus the cash you want plus any closing costs. On the example — a $500,000 home with a $250,000 balance — taking $50,000 cash makes a $309,000 loan at 6.50%, with a payment of $1,953.09 a month.
Lenders usually cap the new loan at 80% of your home's value. Your cash is that cap minus your current balance. On a $500,000 home, 80% is $400,000; subtract the $250,000 balance and you can take up to about $150,000. A higher balance or a lower value leaves less room.
Most cash-out refinances require you to keep at least 20% equity, so the new loan cannot exceed 80% of the home's appraised value (some VA and specialty loans allow more). That 80% loan-to-value limit is what caps the cash you can pull. Above it, you either take less cash or pay mortgage insurance, if the program even allows it.
Usually, because you are borrowing more and often at today's rate. In the example the payment goes from $1,319.59 to $1,953.09 — up $633.50 a month. The catch is that the new rate applies to your entire balance, not just the cash, so refinancing a low-rate loan to pull cash can be expensive.
A cash-out refinance replaces your whole mortgage, so it only makes sense if the new rate is close to your old one. A home equity loan or HELOC is a second loan on top, leaving your first mortgage untouched — better when your current rate is low. HELOCs are variable and flexible; home equity loans are fixed. Compare all three before pulling equity.
Anything — but the reason matters. Using it for a value-adding home improvement, or to consolidate high-rate debt into a lower mortgage rate, can pay off. Spending it on a car or a holiday means financing a short-lived purchase over 30 years, which is rarely wise. The cash is your home equity, so treat it with the same care.
Similar to any mortgage — typically 2% to 5% of the loan for lender fees, appraisal, title and so on. This calculator rolls them into the loan at the percent you set. On the example a 3% cost is $9,000, added to the balance so you finance it rather than pay out of pocket.
It can be, when the rate is reasonable and the cash funds something worthwhile — home improvements or clearing far costlier debt. It is risky when it swaps a low mortgage rate for a much higher one across the whole balance, or turns unsecured debt into debt secured by your home. Run the payment change and the total interest before deciding.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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