Cash-Out Refinance Calculator 2025

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Our cash-out refinance calculator provides the total amount that can be borrowed as cash when the existing mortgage is refinanced. Mortgage refinancing is the process of getting a new mortgage with better terms than your existing home loan. When you refinance your mortgage, you have an option to access your equity in the home to borrow cash as part of the refinance. Borrowing more than your original mortgage amount is called a cash-out refinance, as the difference between your new mortgage and your original mortgage can be turned into cash. This amount that is borrowed is included in your outstanding balance and increases your monthly mortgage payment.

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What is a cash-out refinance?

A cash-out refinance allows homeowners to borrow additional funds when they refinance their mortgage. When you refinance, you borrow funds for a new mortgage which is used to pay off your existing mortgage, essentially replacing it. For example, if you have an outstanding balance of $300,000 and you want to refinance without a cash-out option, you will borrow $300,000, ideally at a new lower rate, and replace your existing mortgage that had a higher rate.

How does a cash-out refinance work?

In a cash-out refinance, you have the ability to access the equity you already own in the home to borrow beyond the outstanding balance on your existing mortgage. For example, say you want to refinance with a cash-out option of $15,000 on a $300,000 home. When you refinance, you will borrow a total of $315,000, of which $300,000 goes to pay off the existing balance and $15,000 comes to you as cash.

How does a cash-out refinance calculator work?

Our cash-out refinance calculator provides your new monthly mortgage payment and the total amount you are eligible for as a cash-out refinance. The new monthly mortgage payment is calculated by amortizing the outstanding balance and any additional cash amount. If you increase the amount of cash that you want to borrow, it will result in an increase in the monthly mortgage payment as the outstanding balance becomes larger.

The maximum additional funds that you can borrow as part of a cash-out refinance is calculated based on the home equity you own. Most lenders will allow up to 80% of the loan-to-value (LTV) ratio to be borrowed. This means you must have at least 20% equity in the home if you want to receive additional funds as part of the cash-out refinance. For example, if you have a $300,000 home and an outstanding balance of $200,000 (you own $100,000), you currently have an LTV ratio of 67%. As you can borrow up to 80% LTV which is $240,000, you can access up to $40,000 in additional cash ($240,000 - $200,000) as part of the cash-out refinance.