Cash-Out Refinance Calculator
See how much cash you can pull from your home equity in a refinance — new loan amount, new monthly payment, closing costs and loan-to-value.
How it works
New loan = current balance + cash out · Closing costs = closing% × new loan · Net cash = cash out − closing costs · LTV = new loan ÷ home value
A cash-out refinance replaces your existing mortgage with a larger one and hands you the difference in cash, secured by your home equity. Lenders almost always cap the new loan at 80% of the home’s value (the loan-to-value ratio), which sets the ceiling on how much you can pull out. Because closing costs run a few percent of the whole new loan — not just the cash portion — the money you actually receive is meaningfully less than the equity you tap.
Worked example
On a $400,000 home with a $200,000 balance, taking $50,000 cash makes a $250,000 new loan. At 3% closing costs that is $7,500, so you net about $42,500. The new loan is 250,000 ÷ 400,000 = 62.5% LTV, comfortably under the 80% cap, and at 6.5% over 30 years it costs about $1,580 a month.
Frequently asked questions
How much equity can I cash out?
Most lenders let you borrow up to 80% of your home’s value. Subtract your current mortgage balance from 80% of the value to find your maximum cash-out — for example, a $400,000 home caps the new loan at $320,000, so a $200,000 balance leaves roughly $120,000 of accessible equity before costs.
Does the cash count as taxable income?
No. Cash from a refinance is loan proceeds, not income, so it is not taxed. The trade-off is that you are borrowing against your home and paying interest on it, and the mortgage-interest deduction may be limited when the cash is not used to buy, build or improve the home.
Is a cash-out refinance better than a HELOC?
A cash-out refinance rewrites your whole mortgage at one fixed rate, which is attractive when rates are near or below your current one. A HELOC or home-equity loan leaves your first mortgage untouched and only borrows the extra, which usually wins when your existing rate is much lower than today’s.
Related calculators
This is an educational estimate, not financial advice. Lenders use their own rounding, fees, mortgage-insurance rules and credit terms — confirm exact figures with your lender or a licensed advisor.