# Cash-Out Refinance Calculator

URL: https://speedycalculator.com/calculators/finance/cash-out-refinance/
Last updated: 2026-10-25

> The cash-out refinance calculator works out how much cash you can take out of your home equity, the new loan amount, loan-to-value, new monthly payment and the change from your current payment – plus closing costs and the blended comparison.

## Inputs

- Current home value
- Current mortgage balance
- Current interest rate (%)
- Remaining term (years, months)
- Cash out
- New interest rate (%)
- New loan term (years, months)
- Closing costs (% of new loan) (%)
- Maximum LTV (%)

## Results

- New loan amount
- Closing costs
- New LTV
- Maximum cash out available
- Current monthly payment
- New monthly payment
- Change in monthly payment
- Total interest on the new loan
- LTV check

## Formula

```
Maximum new loan = home value × maximum LTV
New loan = current balance + cash out + closing costs (if financed)
New payment = pmt(new rate ÷ 12, new term, new loan)
LTV = new loan ÷ home value
```

## Explanation

Most lenders cap cash-out refinances at 80% LTV (90% for VA). Compare with a HELOC or home equity loan: if your current rate is much lower than today's, keeping it and adding a second loan may be cheaper.

### How to use the Cash-Out Refinance Calculator

- **Current home value**
- **Current mortgage balance**
- **Current interest rate**
- **Remaining term**
- **Cash out**
- **New interest rate**
- **New loan term**
- **Closing costs (% of new loan)**
- **Maximum LTV**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the home value, current mortgage details, the cash you want, the new rate and term, closing costs and the lender's maximum LTV.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterCurrent home valueAmount in your currencyCurrent mortgage balanceAmount in your currencyCurrent interest rateIn %Remaining termUnits: years, monthsCash outAmount in your currencyNew interest rateIn %New loan termUnits: years, monthsClosing costs (% of new loan)In %Maximum LTVIn %

### What each result means

- **New loan amount** = ([Current mortgage balance] + [Cash out])÷(1 - [Closing costs (% of new loan)]÷100)
- **Closing costs** = [New loan amount]×[Closing costs (% of new loan)]÷100
- **New LTV** = [New loan amount]÷[Current home value]×100
- **Maximum cash out available** = max([Current home value]×[Maximum LTV]÷100×(1 - [Closing costs (% of new loan)]÷100) - [Current mortgage balance], 0)
- **Current monthly payment** = pmt([Current interest rate]÷1200, [Remaining term], [Current mortgage balance])
- **New monthly payment** = pmt([New interest rate]÷1200, [New loan term], [New loan amount])
- **Change in monthly payment** = [New monthly payment] - [Current monthly payment]
- **Total interest on the new loan** = [New monthly payment]×[New loan term] - [New loan amount]

### Example values

How the main result changes when **Current home value** changes and everything else stays at the example values above:

Current home valueNew monthly payment250,0002,333.79375,0002,333.79500,0002,333.79625,0002,333.79750,0002,333.791,000,0002,333.79

## Worked example

Inputs — Current home value: $500,000; Current mortgage balance: $280,000; Current interest rate: 4 %; Remaining term: 25 years; Cash out: $80,000; New interest rate: 6.5 %; New loan term: 30 years; Closing costs (% of new loan): 2.5 %; Maximum LTV: 80 %.

Results — New loan amount = $369,230.77; Closing costs = $9,230.77; New LTV = 73.85 %; Maximum cash out available = $110,000.00; Current monthly payment = $1,477.94; **New monthly payment = $2,333.79**; Change in monthly payment = $855.85; Total interest on the new loan = $470,933.50; LTV check = Within the lender's limit.

## FAQ

**How much cash can I take out?**
Usually up to 80% of your home's value minus what you owe.

**Is a cash-out refinance a good idea?**
It can be for high-return uses, but it resets your loan and uses home equity.

**Is cash from a refinance taxable?**
No – it's borrowed money, not income.

**What formula does the Cash-Out Refinance Calculator use?**
Maximum new loan = home value × maximum LTV.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)