FinToolSuite

Cash-Out Refinance Calculator

Updated April 17, 2026 · Mortgage · Educational use only ·

Cash extracted and new payment after refinance.

Calculate cash extracted and new monthly payment after a cash-out refinance. Enter home value and mortgage balance to see cash out and new payment.

What this tool does

Enter home value, current balance, new LTV, new rate, new term. The tool shows cash out and new payment.


Enter Values

Formula Used
New loan
Monthly rate

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

500,000 home, 200,000 current balance, refinancing to 70% LTV (350,000 new loan) at 5.5% over 30 years: 150,000 cash out, new monthly 1,987. Cash-out gives liquidity via home equity but extends debt and adds interest. Use for high-value purposes (renovation, investment).

Quick example

With home value of 500,000 and current mortgage balance of 200,000 (plus new ltv of 70% and new rate of 5.5%), the result is 150,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Home Value, Current Mortgage Balance, New LTV, New Rate, and New Term. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Standard refinance mechanics. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Stress-testing the plan

Run the calculation at your current rate, then run it again at a rate 2–3 percentage points higher. That's roughly what a product reset could bring at renewal, and it's a useful check on whether you can afford the mortgage in a higher-rate world, not just today's.

What this doesn't capture

The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.

Where to go next

This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the home equity calculator, the mortgage recast calculator, and the refinance breakeven date calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.

Example Scenario

Cash-out refinance produces cash and payment figures based on the inputs provided.

Inputs

Home Value:500,000 £
Current Mortgage Balance:200,000 £
New LTV:70
New Rate:5.5
New Term:30
Expected Result£150,000.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Standard refinance mechanics.

Frequently Asked Questions

When does cash-out make sense?
Rates lower than current mortgage, and cash used for value-creating purpose (home improvement, debt consolidation at lower rate).
Closing costs?
2-5% of new loan amount typical. Eats into cash extracted. Account for in decision.
Versus home equity loan?
Cash-out refinances whole mortgage. HEL/HELOC sits alongside. Cash-out better if new rate lower than current.
Tax impact?
Cash out is not income — not taxed. Interest deduction rules vary by jurisdiction (limited to home improvement since 2018).

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