Cash-Out Refinance Calculator

Enter your home's value, your mortgage and its rate, and the cash you want. You get the most cash your loan program allows, the new loan and payment against the one you have now, what the cash really costs once the new rate reaches your old balance, and the same cash as a home equity loan or HELOC. Conventional, FHA, and VA.

Conventional (up to 80%) FHA (up to 80%) VA (up to 100%)

Home value ($) (a recent estimate; the lender will appraise it)

Mortgage balance you owe ($) (blank = the home is paid off)

Your mortgage's rate (%) (what you pay now; the whole comparison turns on it)

Years left on your mortgage

Cash you want to take out ($) (blank = the most you can; 0 = a plain refinance)

New rate (% per year) (blank = 7.40, the Freddie Mac 30 year average for the week ending October 15, 2026)

New loan term

Closing costs (% of the amount refinanced) (blank = 3; published estimates run 2 to 6)

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Data reviewed: September 2026. Figures here come from published sources and change over time. How we verify

How the cash-out refinance calculator works

A cash-out refinance is usually about something real: a kitchen, a college bill, a stack of card balances that finally needs to go. It turns part of your home's equity into a check by replacing your mortgage with a bigger one, and the difference comes to you at closing. It is a simple idea with one catch that most calculators never show you, so this one leads with it. More than half of all refinances in June 2026 were cash-out loans, according to the Federal Housing Finance Agency, and half of all mortgages in the country carry a rate below 4%, which is exactly when the catch bites.

Enter your home's value, what you owe and at what rate, how much cash you want, and the new rate and term. The page works out how much cash the loan program allows, builds the new loan the way a lender does (your payoff, your cash, the closing costs, and for FHA and VA the program's own fee), and prices the new payment against the one you have now. Then it shows what the cash really costs per dollar, and the same cash borrowed two other ways without touching your mortgage: a home equity loan and a HELOC.

The formula

most cash = home value × program limit ÷ (1 + closing cost rate) − mortgage balance
new loan = (mortgage balance + cash) × (1 + closing cost rate), plus any FHA or VA fee
monthly payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
first-year cost of the cash = (new loan's first-year interest − old loan's) ÷ cash

P is the new loan, r is the monthly rate (the yearly rate divided by 12, as a decimal), and n is the number of monthly payments. The last line is the one that matters: it charges the cash with everything the refinance changes, including the new rate on money you already owed.

Worked example

A $400,000 home with $220,000 left on a 3.5% mortgage and 24 years to go. The payment today is $1,130.17 a month. A conventional cash-out refinance can lend up to 80% of the value, $320,000, so after the payoff and closing costs there is room for up to $90,680 in cash. You take $50,000.

The new loan is $220,000 + $50,000 + $8,100 of closing costs (3%) = $278,100. At 7.40% for 30 years, the payment is $1,925.51 a month, up $795.34.

In its first year the new loan charges about $20,492 of interest against $7,605 on the old one. The difference, $12,887, is 25.8% of the $50,000. That is what the cash really costs in year one, because the refinance moves all $220,000 you already owed from 3.5% to 7.40% as well.

What the cash really costs

The rate on a cash-out refinance is not the rate on your cash. The new rate applies to the whole loan, so a refinance from 3.5% to 7.40% prices the new money at 7.40% and also adds 3.90 points to every dollar of the old mortgage. That second charge is the same whether you take out $10,000 or $90,000, which means small cash-outs are the most expensive per dollar. The same home, the same mortgage, the same 7.40%:

Cash	New payment	First-year cost
$10,000	$1,640.25	98.5%
$25,000	$1,747.22	44.0%
$50,000	$1,925.51	25.8%
$90,680 (the most)	$2,215.62	17.6%

For comparison, this week's averages are 8.56% for a ten-year home equity loan and 7.29% for a HELOC. None of this is a flaw in the loan; it is simply what a single mortgage does. It becomes a problem only when a borrower compares the refinance's 7.40% against those rates and sees a bargain.

The 7.40% is itself generous. It is the average for a purchase loan, and cash-out loans price higher: Fannie Mae's own pricing grid charges a cash-out refinance 2.375% of the loan at a 740 credit score and 75 to 80% loan-to-value, against 1.125% for a refinance with no cash out, and lenders pass that on as a higher rate or higher costs. Use the rate on your own quote.

The same math turns the other way when the new rate is lower than the one you already pay. Refinance a 7.5% mortgage with 28 years left into a 6.25% loan and the first dollars of cash cost nothing at all in the first year: the rate cut on what you already owe pays for them. With no cash out at all, that is a plain refinance, and the page shows how many months the lower payment takes to repay the closing costs.

Cash-out refinance or home equity loan?

Both turn equity into cash; they differ in what they do to the mortgage you already have. A cash-out refinance replaces it, so every dollar you owe moves to today's rate. A home equity loan or a HELOC leaves it alone and adds a second, smaller loan at a higher rate. The way to compare them is the blended rate: the average of the old mortgage and the second loan, weighted by their balances.

In the worked example, $220,000 at 3.5% and $50,000 at 8.56% blend to 4.44% on the whole $270,000, against 7.40% for the refinance. The same $50,000 three ways:

Same $50,000	Monthly now	Interest and fees
Cash-out refinance at 7.40%	$1,925.51	$423,183
Keep the mortgage, home equity loan at 8.56%	$1,751.70	$130,073
Keep the mortgage, HELOC at 7.29%	$1,433.92	$187,075

The refinance costs more each month even though it spreads the debt over a fresh 30 years, and $293,110 more over the life of the loans. The HELOC's lower payment is interest only for its first ten years, and its rate floats with prime.

A cash-out refinance comes out ahead in two situations. The first is a mortgage rate at or above today's, when the refinance cuts the rate on the old balance instead of raising it. The second is a small old balance: with $60,000 left at 3.5% and 15 years to go, $100,000 of cash costs 10.09% in the first year, close to the new rate itself, because there is little old debt to reprice. When the cash is large and the old balance small, the refinance also gives you one fixed payment instead of two loans.

A plain refinance, with no cash out

Enter 0 for the cash and the page becomes a rate-and-term refinance calculator. Its question is different: whether the lower payment repays the closing costs before you move. Refinancing a $220,000 balance at 7.5% with 28 years left into a 6.25% loan for 30 years takes the payment from $1,568.31 to $1,395.22, a saving of $173.09 a month. The $6,600 of closing costs are paid back in 39 months, so the refinance pays if you stay longer than about three and a quarter years. Remember that a new 30-year term also restarts the clock, which can raise the total interest even when the payment falls.

Freddie Mac points out that this break-even method does not work for a cash-out refinance, because the new payment also carries the cash. That is the gap the first-year cost of the cash fills: it prices the cash itself, which is the question a cash-out refinance actually asks.

FHA and VA cash-out refinances

The program changes both how much cash you can take and what the loan adds on top. A conventional cash-out refinance of the home you live in is capped at 80% of its value. FHA also caps the loan at 80%, then adds an upfront mortgage insurance premium of 1.75%, financed into the loan, and an annual premium of 0.50% of the balance (0.70% on a base loan above $726,200), paid monthly for 11 years at that loan-to-value; the upfront premium does not count against the 80% limit. In the worked example that makes the FHA payment $2,076.61 a month, including about $117.40 of mortgage insurance.

VA is the program that can go furthest: up to 100% of the home's value, funding fee included. The funding fee on a cash-out refinance is 2.15% the first time you use the benefit and 3.3% after that, and veterans who receive VA disability compensation do not pay it at all, nor do surviving spouses receiving Dependency and Indemnity Compensation. Many lenders stop at 90% even though VA allows 100%. On the worked example a first-use VA refinance allows up to $160,176 in cash, and the $50,000 costs $1,966.91 a month with the $5,979 fee financed. Our VA loan calculator covers VA purchase loans.

Is the interest tax deductible?

Part of it can be. The IRS treats the portion of the new loan that pays off your old mortgage the same way it treated the old mortgage. The cash-out portion counts only if you use it to buy, build, or substantially improve the home; cash spent on anything else carries nondeductible interest. The One Big Beautiful Bill Act made that rule permanent in 2025, along with the $750,000 limit on mortgage debt whose interest can count. Points paid to refinance are generally deducted a little each year over the life of the loan, not all at once. None of it helps unless you itemize, and the 2026 standard deduction is $16,100 for a single filer and $32,200 for a married couple filing jointly.

What lenders look for

Beyond the loan-to-value limit, lenders want an appraisal that supports the value, enough income to carry the new payment, and a seasoned first mortgage: Fannie Mae requires the loan being paid off to be at least 12 months old, with a borrower on the title for at least six months, and FHA requires you to have owned and lived in the home for the 12 months before the refinance. Because the loan is secured by your home, federal law gives you three business days after closing to cancel it; if you refinance with your current lender, that right covers the new cash.

Sources

Where the numbers on this page come from. We go to the body that publishes the figure, not to another calculator. Figures on this page were checked against these sources in September 2026. See how we verify.

Primary Mortgage Market Survey, Freddie Mac. The 30-year fixed average of 7.40 percent for the week ending October 15, 2026, the default rate (unchanged from the week before); cash-out loans usually price higher still.
Eligibility Matrix (August 5, 2026), Fannie Mae. A cash-out refinance of a one-unit principal residence is limited to 80 percent loan-to-value.
Circular 26-18-30, cash-out refinance loans, U.S. Department of Veterans Affairs. VA will not guaranty a refinancing loan whose loan-to-value exceeds 100 percent, including the funding fee.
Home equity loan rates, Bankrate (survey of September 30, 2026). The average 10-year home equity loan rate of 8.56 percent, used for the home equity loan comparison.
HELOC rates, Bankrate (survey of September 30, 2026). The national average HELOC rate of 7.29 percent, used for the HELOC comparison.
How much are home equity loan and HELOC closing costs?, Experian. Closing costs commonly run 2 to 5 percent of the loan; our 3 percent default sits inside that range.
Planning to refinance, Freddie Mac. Closing costs of 3 to 6 percent of the loan principal; break-even is the total cost divided by the monthly savings, a model Freddie Mac says will not work for cash-out refinances; a new 30-year term extends the loan and raises total interest.
Selling Guide B2-1.3-03, cash-out refinance transactions, Fannie Mae. A first mortgage being paid off must be at least 12 months old, note date to note date, and a borrower must have been on title for at least six months.
Loan-Level Price Adjustment Matrix (September 9, 2026), Fannie Mae. At a 740 to 759 credit score and 75.01 to 80 percent LTV, a cash-out refinance carries a 2.375 percent adjustment against 1.125 percent for a limited cash-out refinance.
Single Family Housing Policy Handbook 4000.1, U.S. Department of Housing and Urban Development. FHA cash-out refinance: maximum LTV of 80 percent; the home owned and occupied as a principal residence for the 12 months before case number assignment; an upfront premium of 1.75 percent of the base loan, not counted in the LTV.
Mortgagee Letter 2023-05, annual mortgage insurance premium, U.S. Department of Housing and Urban Development. Annual MIP at or under 90 percent LTV: 50 basis points (70 above a $726,200 base loan) for terms over 15 years; 15 basis points for 15 years or less (40 above $726,200 at more than 78 percent LTV); 11 years.
VA funding fee and loan closing costs, U.S. Department of Veterans Affairs. Cash-out refinance funding fee: 2.15 percent on first use and 3.3 percent after; waived for veterans receiving compensation for a service-connected disability and for surviving spouses receiving Dependency and Indemnity Compensation, among others.
National Mortgage Database, outstanding mortgage statistics (2026 Q1), Federal Housing Finance Agency. 49.9 percent of outstanding mortgages carried a rate below 4 percent, 66.7 percent below 5, and 77.9 percent below 6.
Refinance Report, second quarter 2026, Federal Housing Finance Agency. Cash-out transactions were 54.4 percent of all refinances in June 2026.
12 CFR 1026.23, right of rescission, Consumer Financial Protection Bureau (Regulation Z). A loan secured by your principal dwelling can be cancelled until midnight of the third business day after closing; a refinance with the same lender carries the right only for new money.
Publication 936, Home Mortgage Interest Deduction, Internal Revenue Service. A refinanced mortgage keeps its treatment up to the old balance; the rest counts only if used to buy, build, or substantially improve the home; points on a refinance are generally deducted over the life of the loan.
26 U.S. Code 163(h)(3), qualified residence interest, Legal Information Institute, Cornell Law School. The $750,000 limit and the rule for home equity debt, with no end date after P.L. 119-21, section 70108.
IRS releases tax inflation adjustments for tax year 2026, Internal Revenue Service (IR-2025-103). The 2026 standard deduction: $16,100 single and $32,200 married filing jointly.

Frequently asked questions

How do you calculate a cash-out refinance?

Add your mortgage payoff, the cash you want, and the closing costs to get the new loan, then check it against the program's limit: 80 percent of the home's value for conventional and FHA loans, up to 100 percent for VA. The payment is the loan times r times (1 + r) to the n, divided by ((1 + r) to the n minus 1), where r is the yearly rate divided by 12 and n is the number of months. The calculator shows every step with your numbers.

How much cash can I get from a cash-out refinance?

Multiply your home's value by the program's limit, then take away what you owe and the closing costs. A $400,000 home with $220,000 owed allows about $90,680 in cash on a conventional loan at 80 percent with 3 percent closing costs, and about $160,176 on a first-use VA loan, which can go to 100 percent.

What does a $50,000 cash-out refinance cost?

On a $220,000 mortgage at 3.5 percent with 24 years left, taking $50,000 at 7.40 percent for 30 years raises the payment from $1,130.17 to $1,925.51 a month. In the first year the new loan charges $12,887 more interest than the old one, which is 25.8 percent of the cash, because the whole balance moves to the new rate.

Is a cash-out refinance better than a home equity loan?

Compare the blended rate. With $220,000 owed at 3.5 percent, adding $50,000 at 8.56 percent blends to 4.44 percent, against 7.40 percent for the refinance, so keeping the mortgage wins by $293,110 over the life of the loans. A refinance comes out ahead when your mortgage rate is at or above today's, or when the old balance is small.

Is a cash-out refinance a good idea?

It can be when your current rate is at or above today's rates, or when you owe little and need a lot. When your rate is well below today's, the refinance reprices everything you already owe, so a home equity loan or HELOC usually costs less. The calculator shows what each dollar of cash costs you in the first year either way.

How long does it take to break even on a refinance?

Divide the closing costs by the monthly saving. Refinancing $220,000 at 7.5 percent into a 6.25 percent loan saves $173.09 a month, so $6,600 of closing costs are paid back in 39 months. A new 30-year term also restarts the clock, which can raise total interest even when the payment falls.

Is interest on a cash-out refinance tax deductible?

The part of the new loan that replaces your old mortgage keeps the old mortgage's treatment. The cash-out part counts only if you use it to buy, build, or substantially improve the home. None of it helps unless you itemize, and the 2026 standard deduction is $16,100 single and $32,200 married filing jointly.

What are the FHA and VA cash-out refinance limits?

FHA allows up to 80 percent of the home's value, plus a 1.75 percent upfront mortgage insurance premium and an annual premium. VA allows up to 100 percent including the funding fee, which is 2.15 percent on first use and 3.3 percent after that, and is waived for veterans who receive disability compensation.