Cash-Out Refinance Calculator
Turn your home equity into cash. See how much you can take out and what it costs.
Cash You Can Take Out
$120,000
New loan: $400,000 at 80% LTV
The Numbers
💡 Plain English: You have $220,000 in equity. At 80% LTV, you can refinance into a $400,000 loan, pay off your $280,000 mortgage, and pocket $120,000 in cash. Your payment goes up by $758.48/mo because you're borrowing more. Common uses: home improvements, debt consolidation, or college tuition. The cash is tax-free — but you're borrowing against your home.
About the Cash-Out Refinance Calculator
A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash. It lets you tap your home equity for major expenses, but it increases your loan balance and monthly payment.
How this calculator works
Enter your home value, current loan balance, new interest rate, and how much cash you want to take out. The calculator shows your new loan amount, monthly payment, and the cash you receive at closing.
The math, in plain English
New loan amount = current balance + cash taken out (limited by the lender’s max loan-to-value, often 80%). New monthly payment comes from the amortization formula on the new loan.
Key terms
- •Home equity — the difference between your home’s value and your loan balance
- •Cash-out — the lump sum you receive by borrowing against your equity
- •Loan-to-value (LTV) limit — the maximum percentage of home value you can borrow
Tips & things to know
- ✓Lenders usually cap cash-out refinances at 80% LTV to limit risk.
- ✓Using cash-out for home improvements may be tax-deductible — consult a tax advisor.
- ✓A higher loan balance means more interest over time, even if the rate is lower.
Frequently asked questions
How much can I take out in a cash-out refinance?+
Typically up to 80% of your home’s value, minus your existing loan balance. The exact limit depends on the lender and loan type.
Is cash-out refinance money taxable?+
No — the cash is borrowed money, not income, so it is not taxed. But you repay it with interest through your mortgage.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.