UtilibyWritten by the Utiliby editorial team · Last updated October 15, 2026 · Rules and formulas reviewed October 2026
What this free online cash-out refinance calculator does
A cash-out refinance swaps your current mortgage for a new, larger one and pays you the difference in cash. It turns some of the equity you have built into money you can spend on a renovation, to clear expensive debt, to invest or to cover a large bill. The question is always how much you can take, and what it will cost you each month and over the years.
This free online cash-out refinance calculator answers both. Enter your home value, current loan and the new loan terms, and it shows the maximum cash available at your lender's loan-to-value limit, the cash you would receive after costs, the new payment and how much it rises, the extra interest over the life of the loan and a split of the increase between the new rate and the new borrowing. It also shows your loan-to-value, a balance chart, a table of cash at different limits and a rate what-if table. Everything runs in your browser, so your numbers stay private.
How to use the cash-out refinance calculator
- Enter your home and loan. Use a realistic home value, ideally from a recent appraisal or comparable sales, and your current balance, rate and years left.
- Pick the loan type. The presets set a common loan-to-value limit, and you can type your own. Lenders and programs differ, so use the limit you are quoted.
- Choose the cash. Enter an amount, or leave 0 to see the maximum.
- Enter the new loan. Add the rate, term, closing costs and fixed fees. Decide whether costs come out of the cash or are paid separately.
- Optional: debts to clear. Enter the monthly payments you will stop making if the cash pays off debt.
- Read the verdict. See the cash, the new payment, the split of the increase and the LTV bar. Explore other limits and rates in the other tabs.
The cash-out refinance maths
| Measure | How it is worked out |
|---|---|
| Maximum new loan | Home value × maximum LTV |
| Cash available (costs from the cash) | Maximum loan × (1 − cost %) − fixed fees − current balance |
| Cash available (costs paid separately) | Maximum loan − current balance |
| New payment | Loan × r ÷ (1 − (1 + r)−n) |
| Rate effect on current balance | Payment on your old balance at the new rate and term − your current payment |
| Cost of the new borrowing | Payment on the cash and costs at the new rate and term |
Worked example. A home is worth 400,000 and you owe 220,000 at 4.0% with 22 years left, so you pay about 1,254. At an 80% limit the maximum loan is 320,000. With 3% costs taken from the cash, you receive about 90,400. A new 30-year loan at 6.5% costs about 2,023 a month, which is 768 more than today. About 136 of that comes from the higher rate on the 220,000 you already owed, and about 632 from the new borrowing. That works out at roughly 7 a month for every 1,000 of cash.
Loan-to-value limits you may meet
Lenders limit how much of the home's value they will lend, because the home is the security. As a general guide, conventional lenders commonly allow cash-out refinancing up to about 80% of the value on a primary home. FHA cash-out loans are commonly capped at 80%. VA loans can often allow up to 90%. Second homes and investment properties are often capped around 75%. Jumbo loans, credit scores, debt-to-income ratios and the lender's own rules can all change the figure, so treat the presets as typical, not guaranteed.
The Cash by LTV limit tab shows how much cash you would get at limits from 60% to 90%, with the matching payment, so you can see how sensitive the answer is. Even a few points of LTV can mean thousands of dollars.
The real cost of the cash: the lock-in effect
The most overlooked part of a cash-out refinance is what happens to the rest of your loan. If your current rate is lower than today's rates, refinancing means giving up that low rate on your whole balance, not just the cash. In the example above, 136 of the 768 monthly increase comes from nothing but the higher rate on the money you already owed. Only 632 pays for the new borrowing.
When your current rate is well below the market, it can be cheaper to keep the first mortgage and borrow the cash separately, for example with a home equity loan or line of credit. When your current rate is close to or above the market, a cash-out refinance is more likely to make sense. The calculator's split of the payment increase helps you judge which case you are in.
Common uses of cash-out refinance money
- Home improvement. Spending on the home can add value and may have tax advantages in some cases.
- Debt payoff. The rate on a mortgage is usually lower than on cards or personal loans, but the debt is stretched over many years and is secured on your home.
- Investment or business. Using home equity to invest adds risk to your home.
- Education or large expenses. Compare the total cost with other ways to borrow.
- Emergency reserves. Some people take a small amount as a buffer.
Risks and costs to weigh
- Your home secures a bigger loan. Missing payments can lead to foreclosure.
- You may lose a low rate on your existing balance.
- You restart the term, so you may pay more interest overall.
- Closing costs are usually a few percent of the loan.
- Prices can fall, leaving less equity than you expected and less room to borrow again.
- Debt can come back. Clearing cards with a refinance only helps if the balances stay low.
Tax points to check
Under current US rules, interest on mortgage debt used to buy, build or substantially improve the home may be deductible within limits, while interest on cash-out money used for other purposes generally is not. Points paid on a refinance are generally deducted over the life of the loan. Rules and limits change and depend on your situation, so ask a qualified tax adviser before you rely on any deduction.
Common mistakes
- Overestimating the home's value. The lender relies on an appraisal, not your estimate.
- Looking only at the monthly payment. Check the total interest and the rate on your existing balance.
- Borrowing the maximum because it is available.
- Forgetting the term reset. A 30-year loan taken at year 10 of your old loan adds 20 years of payments.
- Ignoring alternatives such as a home equity loan or HELOC.
Related refinance tools and guides
This calculator is one of a set of free refinance tools on Utiliby. Depending on what you are deciding, these may help next.
- Mortgage Refinance Calculator: compare a rate-and-term refinance.
- Refinance vs HELOC Calculator: compare with a HELOC or home equity loan.
- Rental Property Refinance Calculator: if the property is a rental.
- Refinance Break-Even Calculator: check the payback month.
For background reading:
- Is Mortgage Refinance Interest Tax Deductible?
- Refinancing with Bad Credit, Self-Employed Income or Negative Equity
Privacy, accuracy and limits
The calculator runs entirely in your browser. The figures you enter are not sent to a server and are not stored, and reloading the page returns the example. Files you download are created on your device. The model assumes fixed rates and level payments and does not include mortgage insurance, taxes, insurance premiums or variable-rate loans. Real fees, rates and limits vary, so confirm every figure with a Loan Estimate.
Frequently asked questions
How much cash can I get from a cash-out refinance?
It is the home value times the maximum loan-to-value, minus your current loan balance and the closing costs. For a 400,000 home at an 80% limit with a 220,000 balance and 3% costs, the cash is about 90,000.
What is the maximum LTV for a cash-out refinance?
Many conventional lenders allow up to 80% on a primary home. FHA cash-out is commonly capped at 80%, VA loans can often go up to 90%, and second homes and rentals are often limited to 75%. Rules vary by lender, so use the limit your lender quotes.
What does loan-to-value mean?
Loan-to-value, or LTV, is the loan divided by the home's value. A 320,000 loan on a 400,000 home is 80% LTV. A lower LTV leaves more equity as a cushion and usually gets better terms.
How is this different from a regular refinance?
A regular rate-and-term refinance replaces your loan without taking extra cash. A cash-out refinance replaces it with a larger loan and pays you the difference. Because the loan is bigger, the payment usually rises even if the rate is lower.
Why does my payment go up so much?
Two things raise it: a bigger loan, and often a higher rate than your old one. The results split the increase into the effect of the new rate on your current balance and the cost of the extra borrowing.
What is the cost of the cash per $1,000?
It is the extra monthly payment for each 1,000 you take out, including costs, at your new rate and term. At 6.5% over 30 years it is roughly 7 a month, so 50,000 of cash adds about 350 a month.
Should I pay closing costs separately or take them from the cash?
Taking them from the cash means less to pay on the day, but the loan is larger. Paying separately keeps the loan smaller. The calculator handles both, so you can compare.
Can I use the cash to pay off debt?
Yes. Enter the monthly payments on the debts you would clear and the results show the net change in your monthly outgoings. Be careful: you are turning unsecured debt into debt secured by your home, and you will repay it over many more years.
Does a cash-out refinance affect my interest rate on the whole loan?
Yes. The new rate applies to the entire new balance, including the part you already owed. If your current rate is low, this can cost more than borrowing separately with a home equity loan or line of credit.
How long must I own the home before a cash-out refinance?
Many lenders require a period of ownership, often around six months, before they allow cash out, and some programs have different rules. Check with your lender.
Is cash-out refinance interest tax deductible?
Under current US rules, interest on the part of a home loan used to buy, build or substantially improve the home may be deductible, within limits, while interest on cash used for other purposes generally is not. Ask a tax adviser about your case.
What are the risks of a cash-out refinance?
Your home secures a larger loan, you may lose a low existing rate, you restart the term, you pay closing costs, and falling home prices can leave you with little equity. Missing payments can lead to foreclosure.
What is the difference between cash-out refinance and a HELOC?
A HELOC is a separate line of credit that leaves your first mortgage untouched, usually with a variable rate. A cash-out refinance replaces the first mortgage. Which is cheaper depends mostly on how your current rate compares with today's rates.
Can I choose how much cash to take?
Yes. Enter the amount you want, or enter 0 to see the maximum. If you ask for more than the limit allows, the calculator caps the cash at the maximum and tells you.
Does the calculator include mortgage insurance?
No. Above 80% LTV, lenders often require mortgage insurance or charge more. That cost is not included, so check your Loan Estimate.
Is my information private?
Yes. The calculator runs in your browser. Nothing you enter is sent to a server, saved or shared, and reloading the page resets it.
Is this cash-out refinance calculator free?
Yes. It is a free online calculator with no sign-up, trial or limit. You can print or download the results.
Sources and further reading
- Consumer Financial Protection Bureau, "What is a cash-out refinance?" and "What is a home equity loan?" (consumerfinance.gov/ask-cfpb).
- Fannie Mae, Selling Guide, eligibility matrix for cash-out refinance loan-to-value limits (singlefamily.fanniemae.com).
- U.S. Department of Housing and Urban Development, HUD Handbook 4000.1, FHA cash-out refinance requirements (hud.gov).
- U.S. Department of Veterans Affairs, VA cash-out refinance loan guidance (va.gov).
- Internal Revenue Service, Publication 936, Home Mortgage Interest Deduction (irs.gov).
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.