Cash-Out Refinance Calculator
A cash-out refinance replaces your whole mortgage with a bigger one and pays you the difference. The cost is that your entire balance moves to today's rate.
Private by design. Your numbers stay on this device.
Educational estimates only. Not financial, tax, or lending advice.
Updated
What does taking cash out cost?
A cash-out refinance pays off your existing mortgage and writes a new, larger one. You get the difference in cash, and you pay closing costs on the full amount rather than on the cash alone. People often miss this: if you owe $320,000 at 5% and take $40,000 out at 7%, you are borrowing $360,000 at 7%, not $40,000, and the extra interest on the original $320,000 usually dwarfs the interest on the $40,000.
Over your 26-year stay
The whole balance moves to the new rate, not just the cash you take. When today's rate is above your current one, that repricing usually costs more than the cash is worth over a short stay.
- Keep current
- Monthly payment
- $2,767
- Net cost over your stay
- $687,691
- vs keeping your mortgage
- —
- Break-even, ours
- —
- Break-even, conventional
- —
- Cash-out refi
- Monthly payment
- $3,073
- Net cost over your stay
- $684,766
- vs keeping your mortgage
- +$2,925
- Break-even, ours
- Month 237
- Break-even, conventional
- Nothing upfront to recover
Why two break-even figures? The conventional figure counts only the monthly payment saving against the cash you pay upfront. Ours also counts what you still owe when you sell, which is why the two disagree.
Compared over
the 26 years you expect to stay
Two break-even figures. The conventional figure counts only the monthly payment saving against the cash you pay upfront. Ours also counts what you still owe when you sell, which is why the two disagree.
| Leave it alone | Replace your mortgage | |
|---|---|---|
| Measure | Keep current | Cash-out refiOut of reach |
| Open to you?Based on what you told us about your cash, your spare income and your loan type. These are limits lenders commonly apply rather than fixed rules, and a servicer may say otherwise. | Yes, on the figures you entered. | Takes the balance past the 80% loan-to-value cap lenders usually apply to a cash-out. |
| Interest rateThe rate on the new or largest loan in this scenario. | 6.875% | 5.75% |
| Starting loan balance | $320,000Low | $378,000 |
| Starting LTV (loan-to-value) | 71.1% | 84.0% |
| Principal & interest | $2,204Low | $2,337 |
| Extra principalVoluntary principal on top of the scheduled payment. Part of what you pay each month, so it belongs in the all-in figure. | — | — |
| PMI | — | $173 |
| Property tax + insuranceIdentical across every scenario for the same home, but a real part of the monthly bill. | $563 | $563 |
| Monthly HOA dues | — | — |
| All-in monthly payment | $2,767Low | $3,073 |
| Total closing costs | NoneLow | $8,000 |
| Cash you have to put inClosing costs paid in cash, plus any lump sum or one-time payment this option needs upfront. | NoneLow | NoneLow |
| Monthly commitment on topMoney you have to keep finding every month beyond the required payment: voluntary extra principal, or the same money invested instead. The required payment itself is the all-in figure above. | NoneLow | NoneLow |
| Cash received | None | $50,000 |
| Interest over 26 years | $367,691 | $351,222Low |
| Balance left after 26 yearsWhat you would still owe when you expect to sell or refinance again. | $0Low | $0Low |
| Equity after 26 yearsHome value less the balance owed. Uses your assumed appreciation rate, which is 0% unless you change it. It is never used to remove mortgage insurance early. | $450,000Low | $450,000Low |
| Invested balance after 26 yearsOnly the growth on this account is credited against net cost. The contributions are money you paid in, so counting the whole balance would count them twice. | — | — |
| Net cost over your planned stayCash closing costs + payments made + balance still owed − cash received. Excludes property tax, insurance and HOA, which are identical across scenarios. | $687,691 | $684,766Low |
| Savings vs keeping your mortgageThis is not the same as interest saved: it also counts the balance you still owe at the end of your stay and any cash you paid upfront. The row above reconciles the two. | Baseline | +$2,925Low |
| Why that differs from interest saved | — | $16,469 less interest, less $58,000 of extra balance you start out owing, plus $50,000 of cash you received — leaving you $2,925 better off. |
| Break-even point, ours“Ahead from month 1” means there was no upfront cost to recover. “Never recovers” means the costs are never paid back. | — | Month 237 |
| Break-even point, conventionalUpfront cash divided by the monthly payment saving. This is the number most people mean by break-even, and it flatters a refinance: it ignores the principal you stop paying down when the term restarts. The equity-adjusted figure above is the one to rank on. | — | Nothing upfront to recover |
| Time to payoff | 26 yearsLow | 26 yearsLow |
| Total interest, full term | $367,691 | $351,222Low |
| Lifetime cost (interest + costs) | $367,691 | $359,222Low |
How to read this: “Low” marks the lowest figure among the scenarios shown and is not a recommendation. Net cost counts payments made plus the balance still owed at the end of your stay, minus cash received, which is what makes loans of different sizes and terms comparable.
Full amortization schedule
Every payment, month by month: how much goes to interest, how much retires principal, and what you still owe afterwards. The last money column is the all-in cost (principal, interest, any extra you send, mortgage insurance, property tax, homeowners insurance and HOA dues), which is what leaves your account. Switch to the annual view for a year-by-year summary. Printing and the CSV both follow whichever view you are in, so a year-by-year download gives a year-by-year file, which opens in Excel, Google Sheets and Numbers.
| Month | Payment date | Beginning balance | Payment | Principal | Interest | Extra principal | Ending balance | Cumulative interest | Mortgage insurance | Taxes & insurance | HOA | Total monthly cost | LTV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Jan 01, 2026 | $320,000.00 | $2,204.15 | $370.82 | $1,833.33 | — | $319,629.18 | $1,833.33 | — | $562.50 | — | $2,766.65 | 71.0% |
| 2 | Feb 01, 2026 | $319,629.18 | $2,204.15 | $372.94 | $1,831.21 | — | $319,256.24 | $3,664.54 | — | $562.50 | — | $2,766.65 | 71.0% |
| 3 | Mar 01, 2026 | $319,256.24 | $2,204.15 | $375.08 | $1,829.07 | — | $318,881.16 | $5,493.61 | — | $562.50 | — | $2,766.65 | 70.9% |
| 4 | Apr 01, 2026 | $318,881.16 | $2,204.15 | $377.23 | $1,826.92 | — | $318,503.93 | $7,320.53 | — | $562.50 | — | $2,766.65 | 70.8% |
| 5 | May 01, 2026 | $318,503.93 | $2,204.15 | $379.39 | $1,824.76 | — | $318,124.54 | $9,145.29 | — | $562.50 | — | $2,766.65 | 70.7% |
| 6 | Jun 01, 2026 | $318,124.54 | $2,204.15 | $381.56 | $1,822.59 | — | $317,742.98 | $10,967.88 | — | $562.50 | — | $2,766.65 | 70.6% |
| 7 | Jul 01, 2026 | $317,742.98 | $2,204.15 | $383.75 | $1,820.40 | — | $317,359.23 | $12,788.28 | — | $562.50 | — | $2,766.65 | 70.5% |
| 8 | Aug 01, 2026 | $317,359.23 | $2,204.15 | $385.95 | $1,818.20 | — | $316,973.28 | $14,606.48 | — | $562.50 | — | $2,766.65 | 70.4% |
| 9 | Sep 01, 2026 | $316,973.28 | $2,204.15 | $388.16 | $1,815.99 | — | $316,585.12 | $16,422.47 | — | $562.50 | — | $2,766.65 | 70.3% |
| 10 | Oct 01, 2026 | $316,585.12 | $2,204.15 | $390.38 | $1,813.77 | — | $316,194.74 | $18,236.24 | — | $562.50 | — | $2,766.65 | 70.3% |
| 11 | Nov 01, 2026 | $316,194.74 | $2,204.15 | $392.62 | $1,811.53 | — | $315,802.12 | $20,047.77 | — | $562.50 | — | $2,766.65 | 70.2% |
| 12 | Dec 01, 2026 | $315,802.12 | $2,204.15 | $394.87 | $1,809.28 | — | $315,407.25 | $21,857.05 | — | $562.50 | — | $2,766.65 | 70.1% |
Showing 1–12 of 312 payments
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Each file is generated in your browser, and nothing is uploaded. Scenarios with a second lien include a separate block for each loan.
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Educational estimates only. Not financial, tax, or lending advice. Want every option side by side instead? Open the full comparison.
What a dollar of cash costs
Three ways to raise the same money against the same house, priced per dollar raised so they can be compared.
A borrower owes $300,000 at 3.5% with 22 years left, on a home worth $600,000, and needs $60,000. They expect to stay 10 years. A cash-out refinance at 6.75% is one route; a HELOC at 8.5% and a fixed home equity loan at 8% are the other two, and both leave the first mortgage alone.
| Route | Monthly, all in | Cost vs keeping | Per $1 of cash |
|---|---|---|---|
| Home equity loan | $2,766.93 | $38,586 | $0.64 |
| HELOC | $2,618.54 | $51,500 | $0.86 |
| Cash-out refinance | $2,897.45 | $148,994 | $2.48 |
Computed by the same engine as the calculator above and re-checked against it on every build. Your own figures will differ; this is an illustration, not a quote.
The cash-out costs $2.48 for every dollar raised, nearly four times the $0.64 of the fixed second lien, even though its rate is lower than either. The cost comes from the base the rate applies to. A cash-out re-prices all $300,000 at 6.75%, while the second liens re-price only the $60,000 borrowed and leave 3.5% in place on the rest.
This is why the answer flips with your existing rate rather than with the size of the gap between the quotes. Hold a below-market first mortgage and the cash-out has to overcome the cost of surrendering it before it can compete at all. Hold a rate at or above market and there is nothing to surrender, and it frequently prices best.
Cash-out refinance, HELOC and home equity loan on one set of your figures
It also resets the term
A cash-out is still a refinance, so it carries every cost a refinance carries.
Closing costs are charged on the whole new loan, not on the cash. Points, title, appraisal and origination are all sized against the full balance, so raising $60,000 on a $300,000 mortgage means paying to re-originate $360,000. And a new 30-year term restarts the amortization schedule: payments that had grown into principal go back to being mostly interest.
That doesn’t rule out cashing out. It means deciding on total cost over the years you expect to stay rather than on the monthly payment, which a longer term can always make look better.
Does refinancing reset your mortgage, and how to refinance without restarting
Cash-out refinance questions
- How much equity do I need for a cash-out refinance?
- Conventional cash-out refinances are commonly limited to around 80% loan-to-value after the cash is taken, which means roughly 20% equity has to remain. Limits differ by loan programme, occupancy, property type and lender, and government-backed programmes follow their own rules. This calculator shows the loan-to-value your entered figures produce and flags when it passes that common threshold; it does not determine eligibility.
- Why does a cash-out refinance cost more than a second lien?
- Because it re-prices everything. A cash-out refinance pays off your existing mortgage and writes a new, larger one, so today's rate applies to the whole balance rather than to the cash you take. On a $300,000 mortgage at 3.5%, raising $60,000 at 6.75% costs about $2.48 per dollar of cash over ten years, against roughly $0.86 through a HELOC and $0.64 through a fixed home equity loan. The gap is the price of giving up the old rate.
- When does a cash-out refinance make more sense than a HELOC?
- Chiefly when your existing rate is at or above what is available now, because then there is no below-market rate to protect and consolidating into one first-lien loan can price better than a second lien. It can also matter when you want a single fixed payment rather than a variable line, or when the amount needed is large relative to the balance. The comparison is arithmetic, so run both rather than assuming.
- Is the cash from a cash-out refinance taxable income?
- Borrowed money is generally not income, so cash taken at closing is not normally taxed. Whether the interest is deductible is a separate question that depends on how the money is used and on limits that have changed in recent years. This site is not tax advice; the IRS publications on home mortgage interest, and a tax professional who can see your return, are the right sources.