Free Cash Out Refinance Calculator Online
Find out how much cash you can access through a cash-out refinance. This free online calculator applies the standard 80% LTV limit to show your available equity, new loan amount, and monthly payment. Calculate online instantly — no registration needed.
Available Cash-Out
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How a Cash-Out Refinance Works
A cash-out refinance replaces your current mortgage with a new, larger loan. The difference between your existing balance and the new loan amount is paid to you in cash at closing. Lenders typically allow you to borrow up to 80% of your home's appraised value — leaving 20% equity in the property.
For example: a home worth $500,000 with a $300,000 remaining mortgage. At 80% LTV, the maximum new loan is $400,000. Subtract the $300,000 existing balance and you can access up to $100,000 in cash. That $100,000 can be used for home improvements, debt consolidation, education, investing, or anything else.
This free cash-out refinance calculator uses this exact formula. It also calculates your new monthly mortgage payment based on the new loan amount, rate, and term so you can compare the cost to your current payment — all online in seconds.
The 80% LTV Rule
Most conventional cash-out refinances are capped at 80% loan-to-value. VA loans (for veterans) allow up to 90% or even 100% LTV in some cases.
Max Loan = Home Value × 0.80
Cash Out = Max Loan − Current Balance
$500k × 0.80 − $300k = $100k cash
The 20% equity requirement protects both lender and borrower — it ensures you retain meaningful ownership in the property and reduces the risk of going underwater if values dip.
Cash-Out Refinance vs. HELOC
Homeowners wanting to tap equity have two main options: a cash-out refinance or a home equity line of credit (HELOC). The right choice depends on how you plan to use the money and your current mortgage rate. Use the free online comparison below to decide which fits your situation.
| Feature | Cash-Out Refinance | HELOC |
|---|---|---|
| Loan Type | Replaces existing mortgage | Second lien on top of mortgage |
| Interest Rate | Fixed (typical) | Variable |
| Rate Level | Usually lower than HELOC | Often higher, tied to prime |
| Closing Costs | 2%–5% of loan amount | Lower; sometimes waived |
| Draw Period | Lump sum at closing | Draw as needed (5–10 yr window) |
| Best For | Large, one-time needs with stable rates | Ongoing or unpredictable expenses |
If you have a low existing mortgage rate, a cash-out refinance may lock you into a higher rate on your entire balance. A HELOC avoids touching your existing loan.
Smart Uses for Cash-Out Funds
- •Home renovations that increase property value
- •Paying off high-interest credit card debt
- •Consolidating multiple high-rate loans
- •Funding college tuition or education
Risky Uses to Avoid
- •Funding lifestyle spending or vacations
- •Speculative investments or crypto
- •Buying depreciating assets (car, boat)
- •Any use that doesn't produce a return above the mortgage rate
Tips Before You Cash-Out Refinance
Compare Your Existing Rate First
If your current mortgage rate is 3.5% and new rates are 7%, a cash-out refinance raises your rate on the entire balance — not just the cash-out portion. In high-rate environments, a HELOC or home equity loan may be less expensive.
Factor In Closing Costs
Cash-out refinance closing costs of 2%–5% are real money. On a $400,000 loan that is $8,000–$20,000 upfront. Calculate your break-even point — how many months of lower payments (if any) before you recoup those costs.
Get an Appraisal Estimate First
Lenders require an appraisal. If your home value comes in lower than expected, you get less cash — or the deal may not work at all. Get a realistic sense of current market value from comparable sales before applying.
Maintain a 20% Equity Cushion
The 80% LTV limit is a maximum, not a target. Borrowing less than the maximum preserves more equity and reduces your new payment. If home values decline after your cash-out refinance, extra equity provides a buffer against going underwater. Run multiple equity scenarios for free in the online calculator above to find your comfort level.
Frequently Asked Questions
Disclaimer: This cash-out refinance calculator is for informational and educational purposes only. Actual available cash, rates, and eligibility depend on your lender, credit score, home appraisal, debt-to-income ratio, and other factors. Consult a licensed mortgage professional before making refinancing decisions.
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