Last updated: Sep 30, 2026
A cash out refinance calculator shows how much cash you can pull from your home equity, what your new payment becomes, and what the deal costs over time. Enter your home value, mortgage balance, rate, and cash goal. The tool returns your new loan amount, loan-to-value ratio (LTV), payment change, closing costs, and net cash.
Homeowners, veterans, investors, and divorcing spouses use it to test a deal before they call a lender. The stakes are high right now. Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed rate at 7.03% on September 24, 2026, up from 6.30% a year earlier.
You may also see this tool called a cash out refi calculator, cash refinance calculator, cash back refinance calculator, cash out mortgage calculator, or equity release calculator. This free cash out refinance calculator covers all of them in one place, with no sign-up.
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash. You keep one loan, one payment, and a new rate that applies to the whole balance.
For example, you owe $240,000 on a $450,000 home. You refinance into a $307,692 loan, pay off the $240,000, cover $7,692 in closing costs, and receive $60,000 in cash.
A refinance calculator that only lowers your rate ignores this trade-off. A cash-out loan resets the rate on every dollar you owe, not just the new cash.
A rate-and-term refinance changes your rate or term and pays out no cash. A HELOC or home equity loan leaves your first mortgage alone and adds a second loan on top.
A cash-in refinance works in reverse. You bring cash to closing to cut your balance, lower your LTV, or remove mortgage insurance. Most people who search for a cash in refinance calculator want to know if paying down principal at closing is worth it.
Use the calculator if you hold at least 20% equity and want a lump sum from your home. It fits several groups:
If your current rate sits near 3% or 4%, run the numbers twice. The next section explains why.
The tool contains 12 connected calculators. Card 1 gives the headline answer, and Cards 2 to 12 test the details.
| Card | What It Answers | Key Result |
|---|---|---|
| 1. Cash-Out Refinance | New loan, payment change, net cash | Money-flow map |
| 2. Equity and Eligibility | How much cash you can take | Max loan by LTV and income |
| 3. Payment | Full payment with taxes, insurance, HOA | PITI and payoff time |
| 4. Rate and APR | Estimated rate and true APR | Rate heatmap |
| 5. Closing Costs | Itemized fees by state | Cost treemap |
| 6. Break-Even | Cost of the cash over time | Effective cost of cash |
| 7. Refinance Type Comparison | Cash-out vs. rate-and-term vs. no-cost | Radar chart |
| 8. Loan Program | FHA, VA, jumbo, non-QM, DSCR limits | Net cash by program |
| 9. Investment Property | DSCR and rental cash flow | Portfolio DSCR |
| 10. Funding Options | Cash-out vs. HELOC vs. loan vs. personal loan | Lowest payment |
| 11. Use-of-Funds Planner | What the cash does for you | Net annual benefit |
| 12. Lender Offer Comparison | Three quotes side by side | Total cost and APR |
Each field below feeds the main calculation.
| Input | What to Enter | Pro Tip |
|---|---|---|
| Home value | Current market value or expected appraisal | Use a recent comparable sale, not a listing price |
| Current mortgage balance | Principal you owe today | Find it on your latest statement |
| Current interest rate | Your existing rate | Needed for the payment comparison |
| Time left on current loan | Years remaining | Drives the interest comparison |
| Cash you want to take out | Cash you need in hand | Ask for the least you need |
| New interest rate | A lender quote | Use a written quote for accuracy |
| New loan term | 5 to 40 years | Longer terms lower payments and raise interest |
| Closing costs (% of new loan) | Typically 2% to 5% | Start at 2.5% |
| Roll closing costs into loan? | Yes or no | Yes raises your loan; no lowers your cash |
Each result answers a different question.
The calculator uses standard mortgage math. Here are the core formulas:
Want to check the math yourself? A cash out refinance calculator Excel version uses one formula: =PMT(rate/12, years*12, -loan). Enter your new loan amount as a negative number and the function returns your monthly payment. The amortization calculator shows how each payment splits between principal and interest.
The calculator estimates. It does not replace a Loan Estimate.
Most lenders cap a primary-home cash-out refinance at 80% of your home’s value. Fannie Mae and Freddie Mac apply this limit to conventional loans. Your maximum cash equals 80% of value, minus your current balance, minus financed costs.
Take a $450,000 home with a $240,000 balance.
This answers a common search: how much equity do you need to refinance? For a conventional cash-out on a primary home, you need at least 20% equity left after closing. A rate-and-term refinance can go higher.
Equity is not just a lender rule. It is your safety cushion. Card 2 shows your current equity, LTV before and after, and the limiting factor.
Your debt-to-income ratio (DTI) can lower the amount below the 80% cap. DTI compares your monthly debt payments to your gross monthly income.
Suppose you earn $9,000 a month and owe $600 in other debts. Escrow runs $700 a month, and the lender allows a 45% DTI.
Here the LTV limit ($360,000) is lower, so LTV controls. Use our debt-to-income ratio calculator to check your own DTI first. At $9,000 in income, 43% equals $3,870, 45% equals $4,050, and 50% equals $4,500 in total monthly debt.
Automated underwriting can approve DTI near 50% with strong credit and reserves. A range of 43% to 45% is the comfortable zone.
Homeowner A gives up a 3.75% rate and receives $60,000. All examples in this article are hypothetical and assume a 7.25% cash-out rate. That rate sits near the Freddie Mac average of 7.03% plus a typical cash-out premium.
Inputs: Home value $450,000. Balance $240,000 at 3.75% with 24 years left. Cash wanted $60,000. New rate 7.25% for 30 years. Closing costs 2.5%, rolled into the loan.
| Result | Value |
|---|---|
| New loan amount | $307,692 |
| Closing costs | $7,692 |
| Net cash to you | $60,000 |
| LTV | 68.4% |
| Equity remaining | $142,308 |
| Current P&I | $1,265.06 |
| New P&I | $2,099.00 |
| Payment change | +$833.95 (+66%) |
| Lifetime interest, new loan | $447,949 |
| Remaining interest, old loan | $124,336 |
| Effective cost of the cash | 16.56% |
The result is a shock for most people. The $60,000 raises the payment by $833.95 a month. The calculator’s effective cost of cash, the annual rate you pay for the new money, comes out near 16.6%.
The reason is simple. The new rate is 3.5 points higher on the entire $240,000 balance. You pay for the rate jump, not only for the cash.
Now change one input. Homeowner B has a $300,000 balance at 6.75% with 28 years left, a $500,000 home, and wants $50,000.
A borrower whose old rate is near today’s market pays far less for the same cash. This is the core insight of the cash out refinance payment calculator. The lower your current rate, the more expensive cash-out becomes.
Cash out refinance rates run higher than standard purchase or rate-and-term rates. Lenders add a pricing adjustment for the extra risk of a larger loan.
Freddie Mac’s survey reported a 30-year fixed average of 7.03% and a 15-year average of 6.42% on September 24, 2026. The 30-year figure was the first reading above 7% since January 2025. Freddie Mac notes that its survey reflects conventional purchase loans with 20% down and excellent credit. Cash-out borrowers should expect a higher quote.
Lenders use loan-level adjustments. The calculator’s Card 4 models these factors:
Compare the APR, not only the rate. Our APR calculator shows how fees change your true borrowing cost. To compare rate scenarios, try the interest rate calculator.
Refinancing costs 2% to 5% of the new loan amount. On a $300,000 loan, that is $6,000 to $15,000.
| Cost Rate | On a $300,000 Loan |
|---|---|
| 2% | $6,000 |
| 3.5% | $10,500 |
| 5% | $15,000 |
Closing costs include origination fees, discount points, appraisal, title and settlement, recording fees, credit reports, and prepaid interest and escrow deposits. Title and recording fees vary by state. The calculator’s Card 5 applies a state factor, so a New York loan costs more than a North Dakota loan.
Lenders must send a Loan Estimate within three business days of your application. Compare sections A and B across offers, since those show lender charges and services you cannot shop for. Card 12 puts three offers side by side by total cost, APR, and payment.
For primary homes, federal rules give you three business days to cancel after closing. This right of rescission applies to most refinances with a new lender.
Break-even months equal closing costs divided by monthly savings. This test works for rate-and-term refinances.
Example: A $300,000 loan drops from 7.5% to 6.75%. The payment falls from $2,097.64 to $1,945.79, saving $151.85 a month. With $6,000 in costs, break-even arrives in 39.5 months.
Cash-out loans do not follow this rule. Your payment usually rises, so no savings exist to repay the costs. The better test is the effective cost of your cash compared with other borrowing.
Use Card 6 for this. It reports the monthly payment change, cost recovered by your horizon, extra paid over your stay, and effective cost of cash. This works as a refinance break even calculator for both loan types.
A second loan often beats a cash-out refinance when your first mortgage rate is low. You keep the low rate on the large balance and borrow only the new cash at a higher rate.
Here is Homeowner A again, comparing two paths for $60,000. The home equity loan assumes 9% for 15 years.
| Measure | Cash-Out Refinance | Keep Loan + Home Equity Loan |
|---|---|---|
| Rate on $240,000 balance | 7.25% | 3.75% |
| Total monthly payment | $2,099.00 | $1,873.62 |
| Interest on the new $60,000 | Inside the higher-rate loan | $49,541 |
| Remaining interest on old loan | Replaced | $124,336 |
| Closing costs | About 2.5% ($7,692) | Typically lower |
The second-loan path costs $225 less each month in this case. Test your own numbers with the home equity loan calculator and the HELOC calculator. A HELOC carries a variable rate, so payments change. Use the blended rate calculator to see the combined rate on two loans.
| Option | Cash Received | Affects First Mortgage? | Best When |
|---|---|---|---|
| Cash-out refinance | Lump sum | Yes, replaces it | Your rate is near market or higher |
| HELOC | Flexible line | No | You need money over time |
| Home equity loan | Lump sum | No | You have a low first-mortgage rate |
| Personal loan | Lump sum | No | You have less equity or need speed |
| Rate-and-term refinance | None | Yes | You want a lower rate |
| Cash-in refinance | None (you pay in) | Yes | You want lower LTV or no mortgage insurance |
A personal loan carries no lien on your home. It also costs more per year, and Card 10 shows the difference. If you also need general loan math, the personal loan calculator and loan calculator help.
Each loan program sets its own maximum LTV, fees, and mortgage insurance. Card 8 covers 15 programs.
| Program | Max LTV | Upfront Fee | Notes |
|---|---|---|---|
| Conventional, primary home | 80% | None | Baseline |
| Conventional, second home | 75% | None | Higher rate |
| Conventional, 1-unit investment | 75% | None | About 0.75% rate premium |
| Conventional, 2-4 unit investment | 70% | None | About 1% rate premium |
| FHA cash-out | 80% | 1.75% | Adds 0.5% annual mortgage insurance |
| VA cash-out, first use | 90% | 2.15% | Some lenders offer 100% |
| VA cash-out, later use | 90% | 3.30% | Higher fee |
| Jumbo, primary home | 75% | None | Above conforming limit |
| Non-QM bank statement | 75% | None | For self-employed borrowers |
| DSCR investor loan | 75% | None | Qualifies on rent |
The 2026 conforming loan baseline is $832,750, and high-cost counties go higher. Verify your county limit.
Eligible veterans and service members can borrow more against their home than conventional borrowers. Many lenders cap VA cash-out at 90% LTV. Some lenders go to 100%.
VA funding fees run 2.15% for first use and 3.30% for later use. Disabled veterans with VA disability compensation are fee exempt. Try our VA home loan calculator alongside this tool. A VA cash out refinance calculator run in Card 8 shows fees, mortgage insurance, and net cash together.
FHA cash-out loans cap at 80% LTV, charge a 1.75% upfront premium, and add annual mortgage insurance. The rules favor borrowers with lower credit scores. Use the FHA loan calculator and Card 8 for an FHA cash out refinance calculator estimate.
Investor cash-out loans cap at 70% to 75% LTV and price about 0.75% above owner-occupied loans. Lenders also test whether rent covers the debt.
That test is the debt service coverage ratio (DSCR). It equals net operating income divided by annual debt service. Read more in our debt service coverage ratio calculator.
Investor example: A $500,000 rental has a $250,000 balance. The owner wants $75,000 at 8.0% for 30 years with 3% costs. The new loan is $335,052 at 67.0% LTV, and P&I is $2,458.49. Annual debt service is $29,502. The model assumes 5% vacancy and 35% operating expenses.
| Monthly Rent | Annual NOI | DSCR | Annual Cash Flow |
|---|---|---|---|
| $3,200 | $23,712 | 0.80 | −$5,790 |
| $3,800 | $28,158 | 0.95 | −$1,344 |
| $4,200 | $31,122 | 1.05 | +$1,620 |
| $4,600 | $34,086 | 1.16 | +$4,584 |
A DSCR under 1.0 means rent does not cover the loan. The plan then depends on appreciation. Card 9 works as a cash out refinance investment property calculator and a cash out refinance rental property calculator. It also shows what your cash can buy next, based on cap rate and down payment.
The best uses build value or cut a higher borrowing cost. The worst uses fund spending that leaves nothing behind. Card 11 estimates net annual benefit for each purpose.
Renovation is the classic use, because it can raise your home’s value. Card 11 compares renovation spending with the value recovered. Not every project pays back, so enter a realistic recovery percentage.
Paying off credit cards shrinks interest. A $40,000 balance at 22% APR costs $8,800 a year in interest. Consolidating into a mortgage at 7.25% cuts the rate sharply.
One warning matters here. Consolidation turns unsecured debt into debt secured by your home. Missed mortgage payments can lead to foreclosure, while missed card payments cannot.
A divorce buyout is a common use. The refinance funds your former spouse’s share and removes their name from the loan. A second loan cannot remove a name from the first note.
Divorce example: A $620,000 home has a $310,000 balance at 3.25%. A $90,000 buyout requires a new loan of $410,256 at 7.25%. P&I jumps from $1,473.08 to $2,798.67 (+$1,325.59). A $90,000 home equity loan at 9% for 15 years adds only $912.84 to the old payment, but leaves the ex-spouse on the first loan. Check both paths. This tool works as a divorce buyout calculator when you enter the buyout amount as your cash.
Tuition, medical expenses, and business funding are common too. Compare them against student loans, medical payment plans, and business loans. Also consider your mortgage calculator results for the new payment and your home affordability calculator budget before you commit.
A cash-out refinance carries real risks. Read these before you apply.
Foreclosure risk. Your home secures the new loan. A larger payment raises the chance of default if income drops.
Longer payoff. Resetting to 30 years erases years of progress. Homeowner A moves from 24 years left to 30, and lifetime interest rises by $323,613.
Retirees and older adults. A new 30-year term may outlast your working years. Fixed retirement income leaves less room for a payment that rises 66%. Homeowners age 62 and older can also review the reverse mortgage calculator as an alternative.
Medical debt. Refinancing medical bills into a mortgage removes options such as payment plans, charity care, and negotiated reductions. Try those first.
Texas homeowners. Texas caps cash-out loans at 80% LTV under its state constitution and requires a waiting period after application. Confirm current rules with a Texas lender.
Credit and income. Low credit scores raise your rate, and high DTI can block approval. Check your DTI before you apply.
Timing. Most lenders require six to twelve months of ownership before a cash-out loan. Rules differ by program, so ask your lender.
Loan proceeds are not taxable income. Interest deductibility is different.
IRS Publication 936 states that mortgage interest is generally deductible only on debt used to buy, build, or substantially improve the home that secures the loan. Cash used for cards, tuition, or investing does not qualify. Ask a tax professional about your situation.
The following errors cost borrowers the most:
A cash-out refinance replaces your mortgage with a larger one and pays you the difference in cash. You receive a lump sum at closing, and the new rate covers your whole balance. Most lenders cap the new loan at 80% of your home’s value.
The calculator adds your cash goal to your balance, adds closing costs if you finance them, and applies the new rate and term. It then reports your new loan, LTV, monthly payment, net cash, and lifetime interest. Enter your own numbers to calculate my cash out refinance in seconds.
Conventional lenders require at least 20% equity remaining after a primary-home cash-out refinance. That means the new loan cannot exceed 80% of your value. FHA cash-out also caps at 80%, and VA lenders often allow 90% or more.
Refinancing costs 2% to 5% of the new loan. On a $300,000 loan, that is $6,000 to $15,000. Fees include origination, appraisal, title, and recording charges. Compare Loan Estimates from at least three lenders.
A cash-out refinance is a good idea when your current rate is near or above today’s rate and you use the money for a high-return purpose. It is a poor idea when you hold a rate far below the market. In Homeowner A’s example, giving up 3.75% gave an effective cost near 16.6%.
A cash-out refinance is better when you want one fixed payment and one lender. A HELOC is better when you need flexible draws or keep a low first-mortgage rate. Compare both with Card 10.
Conventional lenders generally want scores of 620 or higher, and the best rates go to scores of 780 and up. FHA and VA programs accept lower scores at some lenders. Your score directly changes your rate, so check Card 4.
No. Loan proceeds are borrowed money, not income. Mortgage interest is deductible only on debt used to buy, build, or substantially improve the home, per IRS Publication 936.
Yes. Lenders cap investment-property cash-out at 70% to 75% LTV and charge higher rates. Many use a DSCR test, which compares rent to debt service. Card 9 models this.
Most cash-out refinances close in 30 to 45 days, depending on the lender and appraisal timing. Lenders must send your Loan Estimate within three business days of your application. Primary-home borrowers also get a three-day right to cancel after closing.
A rate-and-term refinance changes your rate or term and pays no cash. A cash-out refinance also raises your balance and pays you the difference. Rate-and-term loans price better because they carry less risk.
Yes. The new loan pays your former spouse’s share and removes them from the mortgage. Enter the buyout amount as your cash in Card 1, then compare the result with a second loan in Card 10.
A cash-out refinance turns home equity into cash, but it replaces your whole mortgage. The rate on your existing loan decides whether the deal works.
Run the numbers on this free cash out refinance calculator. Check your LTV, compare a HELOC, and confirm the effective cost of the cash before you sign. Then request written Loan Estimates from three lenders.
For more on how we build and review our tools, read our editorial policies and browse the glossary for plain-English definitions of LTV, DTI, APR, and DSCR.
