Cash-Out Refinance Calculator — Home Equity Access Estimator
Enter your home value, current mortgage balance, the new LTV limit, interest rate and closing costs to instantly see how much cash you can take out, your new monthly payment and how much equity remains in the property after refinancing.
%
%
years
Cash you receive after the new loan pays off your old balance and closing costs
400,000
Home valueCash out (net)
16.3%
Closing costs
1.3%
Old mortgage balance
62.5%
Remaining equity
20%
- 1
Maximum new loan
400,000 × 80% ÷ 100 = 320,000 - 2
Cash out (gross)
320,000 − 250,000 = 70,000 - 3
Cash out (net)
70,000 − 5,000 = 65,000Gross cash out minus closing costs — the amount you actually receive.
How does this calculator work?
Cash-out refinance: borrow up to (Home Value × LTV%) minus your current balance; subtract closing costs for the net payout. Monthly payment = new loan × [monthly rate × (1 + monthly rate)^n] ÷ [(1 + monthly rate)^n − 1]. Most lenders cap LTV at 80%, requiring 20% equity to remain in the home.
Formula
How this is calculated
A cash-out refinance replaces your existing mortgage with a larger loan, paying off the old balance and returning the difference to you as cash. Lenders cap the new loan at a maximum loan-to-value ratio — typically 80% for primary residences — to ensure you retain meaningful equity and reduce their risk. The maximum new loan is the appraised home value multiplied by that LTV cap.
The gross cash-out is the new loan minus your current balance. Subtracting closing costs (origination fees, appraisal, title, escrow — commonly 2–5% of the loan) gives the net cash you actually receive. The new monthly payment is calculated using the standard amortizing mortgage formula, where P is the new loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (term in years × 12).
This calculator models only the mechanics of the refinance. It does not compare the cost of the new loan against your current remaining payments, account for tax deductibility of mortgage interest, or factor in prepayment penalties on your existing loan. A meaningful decision also requires comparing the cash-out refinance against alternatives like a home equity loan (HELOC) or a personal loan, since a cash-out refi resets your mortgage term and often increases total interest paid over the life of the loan.
Frequently asked questions
Most conventional lenders require you to retain at least 20% equity — meaning the LTV stays at or below 80%. Some government-backed programs (FHA, VA) allow higher LTVs, but they carry mortgage insurance requirements. The 20% threshold is the most common rule of thumb.
It depends on how much equity you need and your rate situation. A HELOC is a revolving credit line and does not reset your first mortgage — beneficial if your current rate is lower than today's market rate. A cash-out refinance is a single lump sum but replaces your entire mortgage; it can make sense if you can also lower your rate in the process.
Often yes — lenders can add closing costs to the loan balance (called a "no-closing-cost refinance"), which means you borrow more and pay interest on those costs for the life of the loan. This calculator assumes closing costs are paid separately; if they are rolled in, add them to the loan balance you are borrowing.
Also known as
TG we-Calculate Editorial Team. (2026). Cash-Out Refinance Calculator — Home Equity Access Estimator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/cash-out-refinance-calculator
TG we-Calculate Editorial Team. "Cash-Out Refinance Calculator — Home Equity Access Estimator." TG we-Calculate. 2026. https://we-calculate.com/calculator/cash-out-refinance-calculator.
TG we-Calculate Editorial Team, "Cash-Out Refinance Calculator — Home Equity Access Estimator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/cash-out-refinance-calculator
@misc{wecalculate_cash_out_refinance_calculator, title = {Cash-Out Refinance Calculator — Home Equity Access Estimator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/cash-out-refinance-calculator}}, year = {2026}, note = {TG we-Calculate} }
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