Cash-Out Refinance Calculator
Compare your current mortgage with a new cash-out loan side by side: new payment, payment change, breakeven months on closing costs, and total interest. Free, no sign-up, runs in your browser.
P&I only, taxes, insurance and mortgage insurance are not included. Closing costs are rolled into the new loan. Breakeven shows only when the new payment is lower than the current one.
How the cash-out refinance math works
The new loan amount is your current balance plus the cash you take out plus closing costs rolled into the loan. Both payments use the standard amortization formula P × r ÷ (1 − (1 + r)−n), where r is the monthly rate and n is the number of months. Total interest over each term is simply the payment times the number of months minus the loan amount. On the default inputs, $300,000 at 4.5% with 25 years left costs about $1,667 a month, while a new $355,000 loan at 6.5% over 30 years costs about $2,244, a jump driven both by the extra $50,000 of cash and the higher rate.
Payment change vs total cost. A refinance can lower your payment and still cost more overall if it stretches the term. That is why this calculator shows both the monthly change and the lifetime interest for each scenario, so you can see the trade explicitly. If the new rate is lower and the term is similar, the monthly savings divided into the closing costs gives a clean breakeven: with $5,000 of costs and $150 a month of savings, you break even in about 33 months. Staying in the home longer than that makes the refinance profitable.
When a cash-out refinance beats a HELOC
A cash-out refinance replaces your whole first mortgage, so it tends to win when you want a large lump sum at a fixed rate and your current rate is close to or above today's rates. If your existing mortgage carries a very low rate, replacing it just to reach your equity can be expensive; a HELOC or home equity loan leaves the cheap first mortgage untouched and adds a second payment for the cash you need. Compare the blended cost of both approaches before committing.
| Scenario (defaults) | Amount |
|---|---|
| New loan: $300,000 balance + $50,000 cash + $5,000 costs | $355,000 |
| Current payment: $300,000 at 4.5%, 25 years left | about $1,667/mo |
| New payment: $355,000 at 6.5%, 30 years | about $2,244/mo |
| Maximum cash-out at 80% LTV on $450,000 home | $60,000 minus costs |
Frequently asked questions
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a larger loan and pays you the difference in cash at closing. For example, if you owe $300,000 and refinance into a $360,000 loan, you receive roughly $60,000 minus closing costs. You end up with one new loan, one new payment, and cash you can use for renovations, debt consolidation or other goals.
How much cash can I take out?
Most conventional lenders limit the new loan to 80% of your home's appraised value, so your maximum cash-out is roughly 80% of home value minus your current balance minus closing costs. On a $450,000 home with a $300,000 balance, that ceiling is about $60,000 minus costs. FHA cash-out refinances also use an 80% cap, while VA cash-out loans can sometimes reach 90% to 100% of value.
How do I know if a cash-out refinance is worth it?
Compare the monthly savings against the closing costs. Divide the closing costs by the amount your payment drops to get the breakeven point in months. If you plan to keep the home past the breakeven point, the refinance usually pays off. If the new payment is higher, which is common when you add cash-out to the balance, judge the deal by what the cash costs you in extra interest rather than by breakeven.
Does a cash-out refinance reset my loan term?
Usually, yes. If you have 22 years left and refinance into a new 30-year loan, the clock restarts, which spreads the balance over more months but adds total interest. To avoid that, enter your remaining years as the new term in this calculator, or choose a shorter new term with your lender, and compare total interest on both scenarios.
Is this cash-out refinance calculator free?
Yes. It is completely free, needs no sign-up, and every calculation runs locally in your browser. Nothing you type is uploaded or stored.