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Cash-Out Refinance Calculator

Calculate how much equity you can access through a cash-out refinance.

Mike Starr·Reviewed August 2026
$500,000
$300,000
$50,000
6.5%

New Loan Amount

$350,000

New Monthly Payment

$2,212

Loan-to-Value Ratio

70.0%

LTV is within acceptable range.

Understanding This Calculator

What it does: Calculates how much cash you can take out of your home equity through a cash-out refinance, along with your new loan amount and loan-to-value ratio.

When to use: Use this when you want to access your home equity as cash for major expenses like home improvements, debt consolidation, or education.

How to use: Enter your home value, current mortgage balance, desired cash-out amount, and the new interest rate. The calculator shows your new loan amount, monthly payment, and LTV ratio.

Key Inputs Explained

Home ValueYour home current estimated market value. Be realistic — the lender will order an appraisal.
Current BalanceThe remaining principal on your existing mortgage.
Cash-Out AmountHow much cash you want to receive from the refinance.
New Interest RateThe rate on the new loan. Cash-out refinances may have slightly higher rates than rate-and-term refinances.

Worked Example

Home worth $500,000, current balance $300,000, cash-out $50,000. New loan = $350,000, LTV = 70%. At 6.5% for 30 years, new payment = $2,212.

Assumptions & limitations: Most lenders cap cash-out refinances at 80% LTV on conventional loans. This calculator does not include closing costs (2-5% of the loan amount) or the impact of a higher rate on the full balance.

Calculator FAQs

What is the maximum I can cash out?

Most conventional lenders allow up to 80% LTV. FHA allows up to 80%. VA allows up to 100% (90% by many lenders). Your available equity = (Home Value x Max LTV) - Current Balance.

Is a cash-out refinance better than a HELOC?

It depends. If your current rate is higher than today, a cash-out refi can lower your rate while accessing equity. If your current rate is low, a HELOC preserves your first mortgage. See our cash-out vs. HELOC guide.

Are cash-out refinance proceeds taxable?

No. Loan proceeds are not income and are not taxed. However, mortgage interest may only be deductible if the funds are used for home improvements.

Can I use cash-out for anything?

Yes, but using it for depreciating assets (cars, vacations) is risky — you are securing the debt with your home. Best used for home improvements, debt consolidation, or education.

Key Glossary Terms