Calculate cash-out refinance proceeds, financed closing-cost impact, new LTV, payment change. Use it to test different inputs quickly, compare outcomes, and understand the main factors behind the result before moving on to related tools or deeper guidance.
This planner assumes costs are rolled into the new loan The refinance worksheet adds closing costs to the new balance, then compares the new loan
against the remaining payment path on the current mortgage. Use lender disclosures to check
whether your actual closing-cost treatment or LTV cap differs.
Formula
New loan amount = Current balance + Requested cash out + Financed closing costs
New LTV = New loan amount / Home value
Available cash at selected LTV = Home value × max LTV - Current balance - Closing costs
Cash-out refinance result
$50,000.00 cash out
Refinancing to $296,000.00 would change the payment to
$1,870.92 per month and leave the new loan at
65.78% LTV.
New payment change
$506.70
New LTV
65.78%
Max cash at selected LTV
$114,000.00
LTV screen result
Inside selected LTV cap
Refinance comparison sheet
Measure
Value
Current monthly payment
$1,364.22
New monthly payment
$1,870.92
Current balance
$240,000.00
Requested cash out
$50,000.00
Financed closing costs
$6,000.00
New loan amount
$296,000.00
New LTV vs selected cap
65.78% vs 80%
Equity remaining after refi
$154,000.00
Interest remaining on current loan
$152,895.26
Interest on new refinance
$377,531.69
Interest difference
$224,636.43
Payment comparison at the same cash-out request
Term
Monthly payment
Total interest
15 years
$2,578.48
$168,126.00
20 years
$2,206.90
$233,655.16
30 years
$1,870.92
$377,531.69
Inside selected LTV cap The requested cash out fits within the selected 80% LTV
screen based on the entered value and financed closing costs.
A cash-out refinance calculator shows how much equity you may be able to turn into loan proceeds, what the new refinance balance would be after financed closing costs, and how the new payment compares with staying on the current mortgage.
What a cash-out refinance calculator is measuring
A cash-out refinance replaces the current mortgage with a new, larger mortgage. The new balance first pays off the remaining mortgage, then covers any financed closing costs, and the remaining proceeds are delivered to the borrower as cash out. That means the key planning questions are not only "How much cash can I pull out?" but also "What will the new payment be?", "What LTV will the new loan create?", and "How much more interest might I pay by resetting the debt?"
A useful cash-out refinance calculator therefore needs to compare the current loan path with the proposed new loan path. It should show the new loan amount, the payment change, the new LTV, the amount of equity still left in the property, and the difference between staying on the current amortization schedule versus taking on a fresh refinance term. Without that comparison, a cash-out number on its own can look more attractive than it really is.
This planner assumes closing costs are financed into the new balance. That is not the only possible structure, but it is a common screening assumption because it makes the refinance trade-off visible immediately. If your lender requires some costs to be paid out of pocket, the true cash-to-close and the effective net proceeds will differ from the modeled result.
How this refinance planner builds the comparison
The current-loan side uses the remaining balance, current rate, and remaining term to estimate the payment and the remaining interest cost if you simply continue with the existing mortgage. The refinance side adds the current balance, the requested cash out, and financed closing costs to produce the new loan amount. That new amount is then amortized at the entered refinance rate and term to show the new monthly payment, total interest on the new refinance, and the payment change relative to the current loan.
The equity-screen side compares the new loan amount with the selected LTV cap. The page calculates the maximum loan amount implied by the selected LTV, then subtracts the current balance and financed costs to estimate the maximum cash available at that screen. If the requested cash out pushes the new loan above the selected LTV, the planner flags that result rather than pretending the request cleanly fits a typical underwriting limit.
That structure makes the page useful for real screening decisions. You can test whether the cash-out request itself is the problem, whether a shorter or longer refinance term changes the payment enough to matter, and whether the additional interest cost is being driven mostly by the higher rate, the larger balance, or simply by resetting the amortization clock.
New loan amount = Current balance + Requested cash out + Financed closing costs
The refinance balance must first pay off the existing mortgage and cover financed fees before cash proceeds are delivered.
New LTV = New loan amount / Home value
Loan-to-value shows how much of the home's value will be encumbered after the refinance closes.
Max cash at selected LTV = Home value × max LTV - Current balance - Closing costs
This estimates how much room is left for cash out after respecting the selected LTV screen and financing costs.
Worked example: 450,000 value, 240,000 balance, and 50,000 cash out
Suppose a home is worth 450,000 and the current mortgage balance is 240,000. The homeowner is considering taking 50,000 of cash out, financing 6,000 of closing costs, refinancing at 6.5%, and starting a new 30-year term. On those inputs, the new loan amount would be 296,000 because the refinance must pay off the 240,000 balance, fund 50,000 of cash out, and roll in 6,000 of costs.
That 296,000 balance produces a new LTV of about 65.78% on a 450,000 property, which is inside an 80% screening cap. The same LTV screen would imply a maximum loan amount of 360,000, leaving roughly 114,000 of theoretical cash-out room after subtracting the old balance and financed costs. The refinance planner then compares the new payment with the payment still remaining on the current mortgage and shows how much additional interest cost the new refinance introduces if you hold it for the full new term.
The example matters because cash-out refinance decisions often look affordable when viewed only through available equity. The harder question is whether the new balance, new term, and financed fees still make sense when compared with simply keeping the current loan. A useful planner has to show both the equity-access side and the payment-and-interest side at the same time.
What this cash-out refinance estimate does not cover
This page is a planning model, not a lender approval tool. It does not determine credit qualification, reserve requirements, occupancy rules, appraisal adjustments, debt-to-income underwriting, mortgage insurance, escrow setup, or product-specific lender overlays. It also assumes the entered home value is reasonable and that the refinance can be closed at the entered rate, costs, and term, which is never guaranteed.
It also does not decide whether cash-out refinancing is the best way to raise funds. Borrowers may compare it with a home-equity loan, HELOC, or simply keeping the current first mortgage intact. Use the result to frame the payment, LTV, and cost trade-offs, then compare the Loan Estimate and Closing Disclosure from real lenders before making a borrowing decision.
CFPB — What is a Loan Estimate? — Official CFPB explainer covering the mortgage disclosure that shows estimated rate, payment, and closing costs.
CFPB — Review your Loan Estimates — Official CFPB guidance on comparing mortgage offers and checking whether the loan details match what you requested.
Frequently asked questions
How is a cash-out refinance different from a rate-and-term refinance?
A rate-and-term refinance replaces the current mortgage without materially increasing the balance beyond what is needed to pay off the old loan and closing costs. A cash-out refinance increases the new loan balance enough to deliver cash proceeds to the borrower after payoff and costs. That extra borrowing is why LTV, payment change, and interest-cost comparison matter so much.
Do closing costs reduce how much cash I can take out?
Yes. If closing costs are financed, they increase the new loan balance and eat into the amount of equity available under any LTV cap. If they are paid out of pocket, they may not change the new balance as much, but they still affect your real cash position. Either way, ignoring closing costs overstates the economic benefit of the refinance.
Is more available equity always a reason to do a cash-out refinance?
No. Available equity only tells you that the home may support a larger loan. It does not tell you whether the new payment, rate, term, or lifetime interest cost makes the transaction worthwhile. A refinance can clear an LTV screen and still be a weak choice if it resets the amortization clock or materially increases total borrowing cost.
Does this calculator tell me whether a lender will approve the refinance?
No. Approval depends on credit, income, appraisal results, debt-to-income ratio, reserve requirements, occupancy, product rules, and lender overlays. This page is a screening model for payment, LTV, and cost trade-offs, not an underwriting decision.
