Numeros
Categories Financial Calculators Health Calculators Math Calculators Date & Time Construction Engineering Physics Business Education Lifestyle Converters Generators
About

Cash-Out Refinance Calculator

By

Enter your home's value, current mortgage balance, and target loan-to-value to find how much cash you could take out.

Cash-Out Refinance Calculator

Live
Estimated cash out
$120,000.00
New loan amount
$320,000.00
Remaining equity
$80,000.00
Before closing costs and fees, which reduce your actual cash received. Lender-specific LTV limits and rate offers vary - this is an estimate to plan around.

The formula

New loan amount = Home value x Target LTV Cash out = New loan amount - Current mortgage balance Remaining equity = Home value - New loan amount
Example

A $400,000 home with a $200,000 balance, refinancing to 80% LTV: new loan = 400,000 x 0.80 = $320,000, cash out = 320,000 - 200,000 = $120,000.

Step-by-step guide

  1. Enter your home's current market value.
  2. Enter your current mortgage balance.
  3. Enter your target loan-to-value - many lenders cap cash-out refinances at 80% LTV.

Why the LTV cap exists and why it matters

Lenders limit how much you can borrow against your home's value specifically to maintain a safety margin - if home values dip or you fall behind on payments, that remaining equity cushion protects the lender from being owed more than the property is worth. This is exactly why cash-out refinances typically cap at a lower LTV (often 80%) than the maximum LTV allowed for a purchase mortgage - taking cash out is considered a somewhat higher-risk transaction, since you're increasing your loan balance rather than paying it down.

Common mistakes

Forgetting closing costs - a cash-out refinance typically carries closing costs similar to a purchase mortgage (often 2-5% of the loan amount), which reduce the actual cash you receive.
Using an outdated or hopeful home value instead of a realistic current estimate - overestimating your home's value overstates how much cash you can actually access.

Frequently asked questions

Does a cash-out refinance replace my existing mortgage?

Yes - it's a brand new, larger mortgage that pays off your existing loan first, with the difference paid to you in cash. You end up with one new loan, not two.

How is this different from a HELOC or home equity loan?

A cash-out refinance replaces your entire existing mortgage with a new one. A HELOC or home equity loan instead sits alongside your existing mortgage as a separate, second loan - your original mortgage terms and rate stay unchanged.

Will my interest rate change with a cash-out refinance?

Yes - you're taking out an entirely new loan at current market rates, which may be higher or lower than your existing rate. It's worth comparing the new rate against your current one as part of the decision.

Related calculators

See the full list of Financial calculators, or try: