Will I owe PMI after a cash-out refinance?

If your new loan pushes your LTV above conventional PMI thresholds, mortgage insurance may apply even on a cash‑out refi. This calculator does not model PMI costs; if PMI is likely, you should factor that into your payment and cost comparison.

What happens if my appraisal comes in lower than expected?

Because maximum cash‑out is tied to the appraised value, a lower‑than‑expected appraisal reduces the max loan allowed and therefore your available cash. If you are concerned about this, rerun the calculator with a more conservative home value as a stress test.

Are closing costs rolled into the new loan or paid in cash?

This tool assumes closing costs are funded from the new loan proceeds unless you adjust your inputs to reflect paying some or all costs out of pocket. If you plan to pay costs in cash, you can reduce the closing cost input to see how that increases your net cash‑out.

Does the calculator include taxes, insurance, or HOA dues?

No. It focuses on principal and interest payments and interest comparisons only. Property taxes, homeowners insurance, and HOA dues are separate and should be added when assessing your full housing payment and budget.

How should I compare a cash-out refi to a HELOC?

A cash‑out refi typically offers a single fixed rate and fully amortizing payment on the combined balance, while a HELOC often has a variable rate and interest‑only features. Use this calculator to understand the fixed‑rate refi side and then compare it with HELOC terms—especially the rate, payment flexibility, and how quickly you plan to pay the borrowed amount back.

finance calculator

Cash-Out Refinance Calculator

See how much cash you can pull from your home, your new payment, and interest tradeoffs when refinancing with a cash-out.

Results

Max loan allowed (LTV): $400,000
Estimated cash-out (after costs): $75,500
New loan amount: $400,000
New monthly payment (P&I): $2,463
Payment change vs current: $387
Current payment (P&I): $2,076
Interest remaining (current path): $352,467
Interest over new term: $486,633

Overview

A cash‑out refinance lets you replace your existing mortgage with a new, larger loan and take the difference in cash. It can be a way to tap home equity for renovations, debt consolidation, or other goals while rolling everything into a single fixed‑rate payment. But it also resets your amortization schedule, may raise your interest rate or payment, and comes with closing costs that eat into the cash you actually receive. This cash‑out refinance calculator helps you see, in one place, how much cash you can likely access at a given loan‑to‑value (LTV) limit, what your new payment would look like, and how the interest on the new loan compares to staying on your current path.

How to use this calculator

Enter your current home value or a conservative estimate of what you think the appraisal will support. Using an optimistic number may overstate how much cash you can take out.
Enter your current mortgage balance, current interest rate, original term in years, and how many months have already elapsed on that loan. These inputs are used to estimate your current payment and remaining interest.
Choose a maximum LTV allowed (%) based on your loan program or lender guidance—80% is a common cap for conventional cash‑out refis, but some products may differ.
Enter the new rate (APR %) you are being quoted and the new term in years you are considering. Many cash‑out refis reset to a new 30‑year term, but you can also model shorter or longer terms.
Add an estimate of closing costs, including lender fees, title, appraisal, and recording costs. If you plan to roll these into the new loan, leaving this value in the calculator will reduce your cash‑out; if you expect to pay them in cash, set the field lower to see higher net proceeds.
Review the outputs: maximum loan allowed by LTV, estimated cash‑out available after costs, the new loan amount, your new monthly P&I payment, the difference between new and current payments, remaining interest on your current path, and total interest over the new term.
Adjust inputs to test different scenarios—higher or lower appraised values, different rates and terms, or paying closing costs out of pocket—to see how each decision changes your cash‑out and interest tradeoffs.

Inputs explained

Home value: An estimate of your home’s current market value or the appraised value your lender will use for LTV calculations. Because the maximum cash‑out is tied to this value, using a conservative estimate reduces the risk of overestimating how much cash you can actually access.
Current mortgage balance: The outstanding principal on your existing mortgage. This amount must be paid off by the new cash‑out loan. The difference between the new loan and this balance (after closing costs) is the cash you take out.
Current rate (APR %) and original term (years): The interest rate and original term of your existing mortgage. These values, combined with your current balance and months elapsed, are used to approximate your current monthly payment and how much interest is left to pay if you keep the loan.
Months elapsed: How many months you have already paid on your current loan. This determines how many months remain in the original term and therefore how much principal and interest you still owe under the current schedule.
Max LTV allowed (%): The maximum loan‑to‑value ratio your lender allows for cash‑out. For example, at an 80% max LTV on a $500,000 home, the largest permissible new loan is about $400,000. Program limits may vary by occupancy, property type, and credit profile.
New rate (APR %) and new term (years): The interest rate and term for the new cash‑out refinance. These determine your new monthly payment and how much interest you will pay over the life of the new loan. Resetting to a longer term can lower the payment but extend interest out over more years.
Closing costs: Your estimated closing costs for the refinance, including lender fees, title, appraisal, and government recording charges. When you roll these costs into the new loan, they reduce your net cash‑out and increase the amount on which you pay interest.

Outputs explained

Max loan allowed (LTV): The maximum new loan amount based on your home value and the max LTV you entered—for example, 80% of the home’s value on a conventional cash‑out. This cap often limits how much equity you can tap even if your balance is lower.
Estimated cash-out (after costs): The approximate cash you could receive at closing after paying off the existing loan and covering closing costs, assuming those costs are rolled into the new loan. If this number is small or zero, a cash‑out refi may not be an efficient way to access funds.
New loan amount: The size of your new mortgage after the cash‑out refinance. It includes your prior balance, closing costs you finance, and the cash you receive, but is capped by the LTV limit. This amount is used to calculate your new monthly payment and new interest over the term.
New monthly payment (P&I): The monthly principal‑and‑interest payment on the new loan, based on the new rate and term. This does not include taxes, insurance, or HOA dues, which you should add separately to see your full housing payment.
Payment change vs current: The difference between your new P&I payment and your current P&I payment. A positive number indicates a higher payment after the refi; a negative number indicates savings. Remember that lower payments often come from lengthening the term, which can increase total interest.
Current payment (P&I): An estimate of your current monthly principal‑and‑interest payment based on the inputs you provided for your existing loan. This is used as the baseline for comparing the new payment.
Interest remaining (current path): An estimate of how much interest you will pay over the remaining life of your current mortgage if you do not refinance, assuming you make scheduled payments and do not prepay principal.
Interest over new term: The total interest you would pay over the full term of the new cash‑out loan, assuming you make scheduled payments for the entire new term. Comparing this number to the remaining interest on your current loan helps illustrate the long‑term cost of resetting the mortgage.

How it works

The calculator starts with your home value and the maximum LTV allowed for your cash‑out program. Many conventional cash‑out refis cap the new loan at around 80% of the home’s value. Max loan allowed = Home value × Max LTV %. This is the largest new loan amount your lender is likely to permit, subject to underwriting.

From that maximum loan, we subtract your current mortgage balance and the closing costs you plan to finance to estimate the cash you can take out. Cash‑out available ≈ Max loan allowed − Current balance − Closing costs. If this value is negative, we floor it at zero to reflect that no usable cash is available under those assumptions.

The new loan amount is modeled as the sum of your current balance, closing costs, and any cash you receive, but never exceeding the maximum allowed by LTV. New loan amount = min(Max loan allowed, Current balance + Closing costs + Cash‑out). In practice, this ensures the cash‑out plus closing costs fits within the LTV limit.

To compute the new payment, the calculator uses a standard fixed‑rate amortization formula. Based on your selected new interest rate (APR) and new term in years, it converts the annual rate to a monthly rate and multiplies the years by 12 to find the term in months. It then calculates the monthly principal‑and‑interest payment that fully amortizes the new loan over that term.

Next, the calculator estimates your current payment path. Using your current interest rate, original term, and current balance, it approximates your current monthly P&I payment and multiplies it by the months remaining (original term months minus months already elapsed) to estimate how much you would pay if you stayed on your existing loan.

From those remaining payments, it backs into the remaining interest on your current path by subtracting your current balance from the total remaining payments: Current interest remaining ≈ (Current payment × Months remaining) − Current balance. This represents the interest you still owe if you do not refinance.

For the new loan, it computes total paid as New payment × New term months and subtracts the new loan amount to find total interest over the new term: New interest over term ≈ (New payment × New term months) − New loan amount.

Finally, the calculator reports the difference between your new monthly payment and your current payment, along with both interest figures. This lets you see whether the cash‑out refi will increase or decrease your payment and how the lifetime interest on the new loan compares to the remaining interest on your current mortgage.

Formula

Max loan allowed ≈ Home value × Max LTV%
Cash-out available ≈ Max loan allowed − Current balance − Closing costs (floored at 0)
New loan amount ≈ min(Max loan allowed, Current balance + Closing costs + Cash-out)
New monthly payment (P&I) ≈ standard fixed‑rate amortization: P × r(1+r)^n / [(1+r)^n − 1]
Current interest remaining ≈ Current payment × Months remaining − Current balance
New interest over term ≈ New payment × New term months − New loan amount

When to use it

Estimating how much equity you can tap via a cash‑out refi to pay for home improvements, consolidate high‑interest debt, or cover major expenses while keeping a single fixed‑rate mortgage payment.
Comparing the new payment and interest cost of a cash‑out refi against your current mortgage to see whether the tradeoff between cash today and interest over time makes sense for your situation.
Testing different LTV limits or home values to understand how sensitive your cash‑out capacity is to appraisal results and program guidelines.
Evaluating whether to roll closing costs into the new loan or pay them out of pocket by seeing how each approach affects your net cash‑out and total interest.
Comparing a cash‑out refi to alternatives like a home‑equity line of credit (HELOC) or personal loan by modeling the fixed‑rate refi side here and reviewing HELOC estimates separately.

Tips & cautions

Use a conservative home value if you are early in the process. If the actual appraisal comes in lower than your estimate, your maximum loan and cash‑out will drop, and you do not want to rely on overly optimistic numbers.
Pay attention to both the payment change and the interest comparison. A lower monthly payment achieved by stretching the term can still mean paying more interest overall, especially if your new rate is higher than your current one.
If current market rates are significantly higher than your existing mortgage rate, be cautious about replacing cheap debt with more expensive debt just to pull cash. In that case, a HELOC or personal loan might be more efficient for short‑term needs.
Consider how long you plan to stay in the home. If you expect to sell or refinance again relatively soon, the long‑term interest numbers may matter less than short‑term payment and cash‑flow impacts.
Include lender credits or discount points in your closing cost estimate so the cash‑out figure reflects your true net proceeds after all fees and pricing adjustments.
The interest comparison is simplified and assumes you make scheduled payments to the end of each loan. It does not model the time value of money, early payoffs, or detailed amortization crossover points.
PMI, property taxes, homeowners insurance, and HOA dues are not included. If your cash‑out refi would trigger PMI or change escrows, you should add those impacts separately.
The calculator assumes closing costs are either fully financed or fully paid out of pocket based on the single closing cost input; real‑world structures may blend credits, seller concessions, and partial cash payments.
Cash‑out availability depends on full underwriting, including credit scores, income, debt‑to‑income ratios, property type, occupancy, and investor overlays. Program rules can change over time and may differ from the simple LTV limit modeled here.
Results are estimates only and are not a loan offer or approval. Only a lender can provide a formal cash‑out quote with binding terms after reviewing your full application and documentation.

Worked examples

$500k home, $320k balance, 80% LTV cap, 6.25%/30‑year new loan, $4,500 costs

Max loan allowed ≈ $500,000 × 80% = $400,000.
Estimated cash‑out ≈ $400,000 − $320,000 − $4,500 ≈ $75,500 available from equity under these assumptions.
New loan amount ≈ $400,000 (paying off the $320,000 balance, covering $4,500 in costs, and delivering roughly $75,500 in cash).
New P&I payment at 6.25% over 30 years is roughly in the mid‑$2,400s per month; current P&I at 6.75% on the existing balance is somewhat lower, so the payment may rise even as you tap equity.
Comparing remaining interest on the current path to interest over the new term shows how much extra you might pay in exchange for accessing that cash today.

$650k home, $410k balance, 80% LTV cap, 5.75%/30‑year new loan, $5,500 costs

Max loan allowed ≈ $650,000 × 80% = $520,000.
Estimated cash‑out ≈ $520,000 − $410,000 − $5,500 ≈ $104,500.
New loan amount ≈ $520,000. The new payment at 5.75% over 30 years will be higher than the payment on the smaller existing balance, but you have over $100,000 in new cash available.
You can compare the new monthly payment to your current payment and review how total interest over the new 30‑year term stacks up against the interest still owed on your current mortgage.
This scenario illustrates how larger equity positions and modest rate changes can make cash‑out refis more attractive than in cases where rates have risen sharply.

Deep dive

This cash‑out refinance calculator estimates how much cash you can take from your home at a chosen LTV, what your new mortgage payment would be, and how the interest on a new loan compares to the interest remaining on your current one.

Use it to test cash‑out scenarios for renovations, debt payoff, or other goals and to decide whether a cash‑out refi, HELOC, or other financing option best fits your budget and time horizon.

FAQs

Will I owe PMI after a cash-out refinance?: If your new loan pushes your LTV above conventional PMI thresholds, mortgage insurance may apply even on a cash‑out refi. This calculator does not model PMI costs; if PMI is likely, you should factor that into your payment and cost comparison.
What happens if my appraisal comes in lower than expected?: Because maximum cash‑out is tied to the appraised value, a lower‑than‑expected appraisal reduces the max loan allowed and therefore your available cash. If you are concerned about this, rerun the calculator with a more conservative home value as a stress test.
Are closing costs rolled into the new loan or paid in cash?: This tool assumes closing costs are funded from the new loan proceeds unless you adjust your inputs to reflect paying some or all costs out of pocket. If you plan to pay costs in cash, you can reduce the closing cost input to see how that increases your net cash‑out.
Does the calculator include taxes, insurance, or HOA dues?: No. It focuses on principal and interest payments and interest comparisons only. Property taxes, homeowners insurance, and HOA dues are separate and should be added when assessing your full housing payment and budget.
How should I compare a cash-out refi to a HELOC?: A cash‑out refi typically offers a single fixed rate and fully amortizing payment on the combined balance, while a HELOC often has a variable rate and interest‑only features. Use this calculator to understand the fixed‑rate refi side and then compare it with HELOC terms—especially the rate, payment flexibility, and how quickly you plan to pay the borrowed amount back.

Related calculators

finance

Mortgage Payment Calculator

Estimate your monthly mortgage payment, total interest, and payoff schedule with one input-driven tool.

finance

Refinance Breakeven Calculator

Compare your current mortgage to a refinance mid-term to see payment change, interest difference, and breakeven months on closing costs.

finance

HELOC Payment Calculator

Estimate HELOC interest-only payments during draw and amortized payments during repayment, plus utilization vs credit limit.

This cash‑out refinance calculator is for educational and planning purposes only. It uses simplified assumptions about LTV limits, amortization, and interest and does not capture all lender, investor, or regulatory rules. It is not a loan offer or commitment to lend. Always consult with a qualified mortgage professional, review official loan disclosures, and consider your full financial situation before deciding whether to complete a cash‑out refinance.