🏦 Cash-Out Refinance Calculator
Calculate how much cash you can get from a cash-out refinance. Compare your current mortgage against the new loan , see monthly payment changes, total interest, LTV, and the true cost of the cash you receive.
What Is a Cash-Out Refinance Calculator?
A cash-out refinance calculator helps you evaluate whether refinancing your mortgage to access home equity makes financial sense. It compares your current loan against a new, larger loan, showing you the cash you can receive, the new monthly payment, total interest cost, and the break-even period.
In a cash-out refinance, you replace your existing mortgage with a new loan that is larger than your current balance. The difference between the new loan amount and your current balance , minus closing costs , is the cash you receive. This can be used for home improvements, debt consolidation, education, or other expenses.
How Does the Cash-Out Refinance Calculator Work?
The calculator performs the following steps:
- Calculates the maximum loan amount based on your home value and the maximum LTV ratio (default 80%).
- Determines the new loan amount , the sum of your current balance, desired cash, and closing costs.
- Checks LTV limits , if the new loan exceeds the max LTV, it caps the cash you can receive.
- Calculates monthly payments for both current and new loans using the standard amortization formula.
- Compares total interest , the total interest you would pay on the new loan versus keeping your current mortgage.
- Computes the break-even period , how long it takes for the monthly savings to offset the costs.
The key formula for cash-out refinance is:
Cash Out = New Loan Amount − Current Balance − Closing Costs
New Loan Amount = min(Home Value × Max LTV, Current Balance + Desired Cash + Closing Costs)
Monthly Payment = Loan × (r(1+r)n) / ((1+r)n − 1)
Why Use This Cash-Out Refinance Calculator?
- Instant Results: See your cash-out amount, new monthly payment, and total interest in seconds.
- Side-by-Side Comparison: Compare your current mortgage against the new loan at a glance.
- LTV Analysis: See if your new loan exceeds the maximum LTV limit and adjust accordingly.
- Break-Even Calculation: Understand how long it will take to recoup the costs of refinancing.
- Full Breakdown: Every step of the calculation is shown with clear explanations.
- Free & Private: No registration, no data storage , all calculations are done in your browser.
❓ Cash-Out Refinance Calculator FAQ
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan. You receive the difference between the new loan amount and your current balance (minus closing costs) as cash.
What is the maximum LTV for a cash-out refinance?
Conventional loans typically allow up to 80% LTV. FHA allows 80%, and VA loans may allow up to 90-100% depending on the lender. This calculator defaults to 80% but lets you adjust it in advanced options.
What are typical closing costs for a cash-out refinance?
Closing costs typically range from 2% to 5% of the new loan amount. They may include appraisal fees, title search, origination fees, and other charges. Some lenders allow you to roll closing costs into the loan.
What is the "true cost of cash"?
The true cost of cash is the difference between the total interest you will pay on the new loan versus what you would have paid keeping your existing mortgage. This is often more than borrowers expect, especially when refinancing into a higher rate or restarting the clock on a new 30-year loan.
What is the break-even period?
The break-even period is how long it takes for the monthly payment savings (if any) to offset the closing costs and additional interest. If you plan to stay in your home longer than the break-even period, a cash-out refinance may make sense.
Should I do a cash-out refinance or a HELOC?
A cash-out refinance gives you a fixed rate on your entire mortgage balance but resets your loan term. A HELOC offers flexible draws at a variable rate but doesn't affect your primary mortgage. The best option depends on your needs, rates, and how long you plan to stay in your home.
How does my credit score affect a cash-out refinance?
Your credit score affects the interest rate you qualify for and may impact the maximum LTV allowed. A higher credit score typically qualifies for better rates and terms.
How accurate is this calculator?
This calculator provides accurate estimates based on standard mortgage formulas. However, actual loan terms depend on your credit score, lender requirements, and current market rates. Use this as a planning tool and consult a mortgage lender for a precise quote.
Is this calculator free to use?
Yes, this calculator is completely free to use. No registration or personal data storage is required. All calculations are performed in your browser.
What is PMI and when do I have to pay it?
Private Mortgage Insurance (PMI) may be required if your new loan exceeds 80% LTV. PMI protects the lender if you default and adds to your monthly payment. This calculator assumes PMI is not included , check with your lender for PMI requirements.