Cash-Out Refinance Calculator
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
A cash-out refinance replaces an existing mortgage with a larger one and releases the difference as usable funds. This calculator estimates two key outputs: the cash amount you could extract and your new monthly payment. It models the scenario by taking your home's current value, what you still owe, your desired loan-to-value ratio, the new interest rate, and the repayment term. The cash released depends primarily on your home value and how much equity you have above the new loan amount. The monthly payment is driven by the new loan size, rate, and term length. This tool illustrates the mechanics of refinancing for educational purposes and assumes standard lending calculations. It does not account for closing costs, fees, tax implications, or changes in property value over time.
Enter Values
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Formula Used
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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. Cash-out is sometimes used for purposes such as renovation or 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. Adjusting one input at a time toward extreme values shows which ones move the result most.
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 shows how the payment would look in a higher-rate world, not just today's.
What this doesn't capture
The figure shown reflects the core calculation; additional costs such as arrangement fees, valuation, legal fees, insurance, and any early-repayment charges (where applicable) sit on top and can add materially to the total cost of borrowing. Rates and product terms can also change over the life of the loan, which can shift the picture relative to this fixed-snapshot estimate.
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.
Refinancing at 5.5% over 30 years on a £500,000 home yields $150,000.00 in extracted cash, with a new monthly payment ($1,987.26).
Inputs
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
The calculator determines cash extracted by applying the new loan-to-value ratio to your home's estimated value, then subtracting your current mortgage balance. The new monthly payment is computed using the standard amortization formula, which accounts for the new loan amount, interest rate, and repayment term. The model assumes a fixed interest rate held constant over the full term, equal monthly payments, and no prepayment penalties or additional fees. It does not model closing costs, property taxes, insurance, prepayment scenarios, or the effect of rate changes. Results reflect mechanical calculations based on inputs provided and should be verified against actual lender quotes.
References
Frequently Asked Questions
When does cash-out make sense?
Closing costs?
Versus home equity loan?
Tax impact?
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