Our cash-out refinance calculator can help you estimate how much cash you may be able to access by replacing your current mortgage with a larger one.
To use the calculator, enter your estimated home value, current mortgage balance, requested cash-out amount, interest rate, loan term and closing costs. The calculator then estimates your maximum new loan amount, available cash, new monthly principal and interest payment, and payment change.
This calculator uses an 80% loan-to-value, or LTV, cap as a model for estimating cash-out refinance scenarios. Many cash-out refinance programs use LTV limits, but actual limits vary by loan type, occupancy, property type, credit profile and lender requirements.
Cash-Out Refinance Calculator Basics
| Topic |
What To Know |
| LTV Cap |
The calculator estimates the maximum new loan as 80% of home value. |
| Cash Available |
Estimated as 80% of home value minus current balance and closing costs, capped by the cash-out amount requested. |
| New Loan Amount |
Current balance plus cash received plus financed closing costs, subject to the 80% LTV cap. |
| New Monthly P&I |
Estimated using standard amortization based on the new loan amount, interest rate and loan term. |
| Payment Change |
Compares the estimated new monthly principal and interest payment with your estimated current principal and interest payment. |
How To Use the Cash-Out Refinance Calculator
Start by entering realistic numbers. The calculator is only as useful as the information you put into it.
1. Enter Your Estimated Home Value
Use a reasonable estimate based on recent comparable sales, a lender estimate or another current valuation method. If the home value is too high, the calculator may overstate how much cash you can access.
2. Enter Your Current Mortgage Balance
This should be the unpaid principal balance on your existing mortgage, not your original loan amount. You can usually find this on your latest mortgage statement or online loan portal.
3. Enter the Cash-Out Amount You Want
This is the amount of equity you want to convert into cash. The calculator will reduce the amount if the 80% LTV cap and closing costs do not support the full request.
4. Add an Estimated Interest Rate
Use a rate that reflects your likely refinance scenario. A lower assumed rate can make the payment look more affordable than it may be in practice.
5. Choose a Loan Term
The loan term affects both monthly payment and total interest. A longer term usually lowers the monthly payment, but it can increase total borrowing cost over time.
6. Add Estimated Closing Costs
The calculator includes closing costs in the cash available calculation and the new loan amount calculation when those costs are financed.
How Our Cash-Out Refinance Calculator Works
Maximum New Loan At 80% LTV
Our calculator uses an 80% loan-to-value cap, which is common in cash-out refinances. The formula is:
Maximum new loan = 0.80 × home value
For example, if your home is worth $500,000, the maximum new loan under this calculator model is $400,000.
Cash Available
Next, the calculator estimates how much cash you may be able to take out after accounting for your current balance and closing costs.
Estimated max cash-out = 80% LTV cap amount − current mortgage balance − closing costs
If your requested cash-out amount is lower than the maximum available amount, the calculator uses the requested amount. If your request is higher than the amount available under the model, the calculator limits the result.
New Loan Amount
The calculator then estimates the size of the replacement mortgage.
New loan amount = current mortgage balance + cash received + financed closing costs
That amount is still capped at 80% of the home value in this calculator model.
New Monthly Principal And Interest Payment
Once the new loan amount is set, the calculator uses standard amortization to estimate the new monthly principal and interest payment.
The estimate is based on:
- New loan amount
- Interest rate
- Loan term
This payment estimate does not include property taxes, homeowners insurance, mortgage insurance, HOA dues or other housing costs unless the calculator specifically asks for those inputs.
Payment Change
The calculator compares the estimated new monthly principal and interest payment with your estimated current monthly principal and interest payment.
This comparison is useful for understanding directionally how the refinance could affect your monthly payment, but it may not match your full escrowed mortgage payment or your exact remaining loan term.
How To Read Your Cash-Out Refinance Calculator Results
Cash Available
This shows how much equity you may be able to convert into cash after accounting for the 80% LTV cap, your current mortgage balance and estimated closing costs.
New Loan Amount
This shows the estimated size of the replacement mortgage after adding the balance you still owe, the cash you take out and any financed closing costs.
New Monthly P&I
This shows the estimated new monthly principal and interest payment under the refinance scenario.
Payment Change
This compares the estimated new principal and interest payment with your estimated current principal and interest payment. A higher payment may still be manageable if the cash-out proceeds support an important goal, but the added debt should fit your long-term budget.
Example Cash-Out Refinance Calculation
The table below shows a simplified example using an 80% LTV cap. This example is for educational purposes only.
| Input Or Result |
Example Amount |
| Estimated Home Value |
$500,000 |
| 80% LTV Cap |
$400,000 |
| Current Mortgage Balance |
$275,000 |
| Estimated Closing Costs |
$8,000 |
| Estimated Maximum Cash Available |
$117,000 |
In this example, the estimated maximum cash available is $117,000 because the 80% cap is $400,000, then the calculator subtracts the $275,000 current mortgage balance and $8,000 in estimated closing costs.
What the Calculator Does Not Tell You
A cash-out refinance calculator can help you test the numbers, but it cannot decide whether refinancing is the right move.
The calculator does not fully account for:
- Whether you qualify for the refinance
- Your exact rate and lender pricing
- Property taxes, homeowners insurance or HOA dues
- Mortgage insurance, if applicable
- Whether an appraisal changes the home value
- How long you plan to keep the loan
- The total cost of restarting the loan term
- Whether another home equity option may be cheaper
Use the calculator as a planning tool, then compare the results with actual loan terms before making a decision.
Cash-Out Refinance Alternatives
A cash-out refinance is not always the best fit.
If your current mortgage rate is already low, keeping that first mortgage and using a HELOC or home equity loan may be worth considering. If your main goal is only to reduce the interest rate on your first mortgage, a rate-and-term refinance may be a cleaner option.
The Bottom Line
A cash-out refinance calculator can help you estimate how much cash you may be able to access, what your new loan amount could be and how your monthly principal and interest payment may change.
The result is a starting point, not a loan approval or final offer. Your actual cash available depends on your home value, current mortgage balance, closing costs, loan type, credit profile, income, debt and lender requirements.
Frequently Asked Questions
What Is an 80% LTV Cap In a Cash-Out Refinance?
It means the new mortgage balance cannot exceed 80% of your home’s value under this calculator model. Actual LTV limits vary by loan program, occupancy, property type and lender requirements.
How Is Cash-Out Amount Calculated In a Cash-Out Refinance Calculator?
The calculator subtracts your current mortgage balance and closing costs from the 80% LTV cap, then limits the result to the amount you requested.
Are Closing Costs Included In a Cash-Out Refinance Calculation?
Yes. Closing costs affect both the available cash calculation and the new loan amount when they are financed.
What Does Payment Change Mean In a Cash-Out Refinance Calculator?
Payment change compares your estimated new monthly principal and interest payment with your estimated current monthly principal and interest payment. It does not necessarily include taxes, insurance, HOA dues or other housing costs.
Can a Cash-Out Refinance Calculator Tell You If Refinancing Is Worth It?
No. It can show whether the numbers appear workable under this model, but it cannot determine whether a refinance is the best decision for your overall financial situation.
Why Is My Requested Cash-Out Amount Reduced By the Calculator?
The calculator may reduce your requested amount if the request, current mortgage balance and closing costs would push the new loan amount above the 80% LTV cap used in the model.
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