Payoff Logic

Cash-Out Refinance Calculator

The number lenders don't advertise: what each dollar of cash really costs over the life of the new loan — plus the 80% LTV check and your new payment. Free, no signup.

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Most lenders cap cash-out refis at 80% loan-to-value. Compare against a HELOC or home-equity loan before committing: a cash-out reprices your ENTIRE balance at the new rate, which is expensive when your current rate is lower.

The trap: repricing cheap debt to get cash

If you hold a 3–5% pandemic-era rate, a cash-out refinance at today's rates reprices your entire balance upward to access a slice of equity — routinely the most expensive way to borrow that money. That's when a HELOC or home-equity loan (second lien, first mortgage untouched) wins decisively. Cash-out shines in the opposite case: your current rate is at or above market, so you'd benefit from a plain refinance anyway and the cash rides along at little marginal cost. The per-dollar cost figure above tells you which world you're in.

Frequently asked questions

How does a cash-out refinance work?

You replace your mortgage with a bigger one and pocket the difference. Owe $220,000 on a $420,000 home and take $50,000 cash: the new loan is ~$270,000 (plus costs), your payment reprices at today’s rate, and the clock usually restarts at 30 years.

How much cash can I take out?

Most lenders cap the NEW loan at 80% of the home’s value (VA allows more). On a $420,000 home that’s a $336,000 max loan; subtract your current balance to find your maximum cash. The calculator flags you when you cross 80%.

What does the cash actually cost?

More than the rate suggests: you pay the new rate on your ENTIRE balance (not just the cash), often for a restarted 30-year term, plus closing costs of 2–6%. The calculator totals every extra dollar you’ll pay versus keeping your current loan and divides by the cash — a per-dollar price that makes offers comparable.

Cash-out refi vs. HELOC vs. home equity loan?

Cash-out reprices everything — great if your current rate is high, expensive if it’s low. A HELOC/home-equity loan adds a second, smaller loan and leaves your first mortgage untouched — usually smarter when you locked a low rate. Rule of thumb: current rate below today’s market → lean HELOC; above → compare both.

Is cash-out money taxable?

No — it’s borrowed money, not income. Interest may be deductible only if the funds substantially improve the home (and you itemize); consolidation or other uses generally aren’t deductible. Confirm with a tax professional.

Is using a cash-out refi to pay off credit cards smart?

It converts unsecured 24% debt into ~7% secured debt — mathematically strong, behaviorally risky: your house now secures old card spending, and re-run cards create double debt. Compare against a consolidation loan first, and only proceed with the spending fixed.

Related calculators

  • Refinance Calculator — Find your break-even month and lifetime savings before you refinance.
  • Mortgage Calculator — Estimate your full monthly payment — principal, interest, property taxes, insurance, PMI, and HOA — with a complete amortization schedule.
  • Debt Consolidation Calculator — Your debts vs. a real loan offer at the same monthly budget — fees counted, longer-term tricks exposed.
  • Mortgage Payoff Calculator — Pay off your existing mortgage early: extra monthly payments, lump sums, and your new payoff date.

Disclaimer: Educational purposes only — not financial advice or a loan offer. LTV caps and pricing vary by lender and program. See our Terms of Use.