How does a cash-out refinance work?

The existing mortgage is replaced with a larger loan, and the difference is received in cash at closing; the entire new balance carries the new rate.

How much cash can I take out?

Most lenders cap cash-out refinances at 80% loan-to-value of the home's appraised value.

Why would my payment go up even though I'm just taking out some cash?

The loan balance increases and the entire new balance may carry a higher rate than the original loan.

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

Depends on the current mortgage rate; if it's well below today's rates, a home equity loan or HELOC may preserve that low rate.

What are common uses for cash-out refinance funds?

Renovations, debt consolidation, education costs, or building savings, since funds are unrestricted.

Cash-Out Refinance Calculator: Estimate Cash & LTV Limits (2026)

HOME EQUITY TOOLS

Cash-Out Refinance Calculator

See how much cash you could pull out when refinancing, and how it changes your new mortgage payment.

Home value

Current mortgage balance

Max LTV allowed for cash-out

Cash you want to take out

Current mortgage APR

Years remaining on current loan

yrs

New mortgage APR

New loan term

MAX CASH AVAILABLE

Current payment

New payment

New loan amount$0

Cash you'll receive$0

Resulting LTV0%

Payment increase$0

Disclaimer: This calculator provides estimates for informational and educational purposes only and does not constitute financial or lending advice. It excludes closing costs, which are typically rolled into or deducted from the new loan. Actual rates, LTV limits, and terms vary by lender.

Written by Mathew | Financial Tools & Calculation Specialist · Last updated July 31, 2026

In two sentences: A cash-out refinance calculator estimates how much cash you can pull from your home’s equity by replacing your current mortgage with a larger one, with most conventional and FHA programs capping the new loan at 80% of your home’s appraised value. This guide breaks down the formula, loan-type-specific LTV limits, and a step-by-step worked example so you know exactly how much cash you could walk away with.

What Is a Cash-Out Refinance Calculator?

A cash-out refinance calculator estimates your available cash by comparing your home’s value, your current mortgage balance, and your loan program’s maximum loan-to-value (LTV) limit. <cite index=”50-1″>A cash-out refinance replaces your existing mortgage with a new, larger loan, giving you the difference in cash at closing</cite> — making it fundamentally different from a HELOC or home equity loan, which add a second loan on top of your existing mortgage rather than replacing it.

The Cash-Out Refinance Formula

<cite index=”48-1″>Here’s the step-by-step way to estimate your available cash</cite>:

Step 1: Home Equity = Home Value − Current Mortgage Balance
Step 2: Maximum New Loan = Home Value × Allowed LTV%
Step 3: Available Cash (before costs) = Maximum New Loan − Current Mortgage Balance
Step 4: Net Cash = Available Cash − Closing Costs (typically 2%–5%)

Cash-Out Refinance LTV Limits by Loan Type (2026)

Your maximum cash-out amount depends heavily on which loan program you use:

Loan Type	Maximum LTV	Notes
Conventional	80%	<cite index=”51-1″>Fannie Mae sets the conventional cash-out refinance LTV cap at 80% for primary residences under its Selling Guide</cite>
FHA	80%	<cite index=”51-1″>FHA limits cash-out refinance LTV to 80% of appraised value per HUD Handbook 4000.1</cite>
VA	Up to 90–100%	<cite index=”51-1″>VA permits up to 100% LTV cash-out refinance for eligible veterans and service members</cite>, though <cite index=”52-1″>some lenders cap VA cash-out at 90–95% LTV</cite>
Jumbo	60–75%	<cite index=”52-1″>Jumbo cash-out loans carry the most restrictive limits, often 60–70% LTV</cite>

Worked Examples

Example 1: Conventional cash-out refinance

<cite index=”48-1″>On a $400,000 home with a $250,000 remaining mortgage balance, the homeowner has $150,000 in equity</cite>. Applying an 80% conventional LTV limit:

Step 1: $400,000 − $250,000 = $150,000 equity
Step 2: $400,000 × 0.80 = $320,000 maximum new loan
Step 3: $320,000 − $250,000 = $70,000 available cash (before closing costs)
Step 4: $70,000 − ~$12,800 (4% closing costs) = ~$57,200 net cash

Example 2: FHA cash-out refinance

<cite index=”53-1″>On a $350,000 home with an $220,000 remaining mortgage balance, applying FHA’s 80% LTV limit produces a maximum loan of $280,000, and after subtracting the existing balance, the homeowner could potentially receive up to $60,000 minus closing costs and fees</cite>.

Example 3: VA cash-out refinance

The same $400,000 home scenario, but under a VA loan allowing up to 90% LTV:

Step 2: $400,000 × 0.90 = $360,000 maximum new loan
Step 3: $360,000 − $250,000 = $110,000 available cash (before closing costs)

VA’s higher LTV ceiling unlocks $40,000 more in available cash than the conventional 80% limit on the identical home value and mortgage balance.

Step-by-Step: How to Use a Cash-Out Refinance Calculator

Enter your home’s current appraised or estimated market value.
Enter your current mortgage balance.
Select your loan type to apply the correct maximum LTV (80% conventional/FHA, up to 90–100% VA, 60–75% jumbo).
Subtract an estimated 2%–5% for closing costs to see your realistic net cash.
Compare your new estimated monthly payment (on the larger loan balance) against your current payment to make sure the new cost fits your budget.

Credit Score and DTI Requirements

<cite index=”47-1″>For conventional cash-out refinances, you typically need a minimum FICO score in the low-to-mid 600s, with many lenders preferring 640–680+ for competitive rates, while FHA cash-out programs may accept scores as low as around 600</cite>. <cite index=”48-1″>Your debt-to-income ratio is calculated as monthly debts divided by gross monthly income — for example, $2,000 in monthly debts against $6,000 in gross income produces a 33% DTI</cite>, which lenders weigh alongside your LTV during underwriting. <cite index=”48-1″>CFPB data from 2013–2023 shows the median credit score for successful cash-out refinance borrowers was about 741</cite>, indicating that strong — but not necessarily perfect — credit is typical among approved applicants.

Cash-Out Refinance vs. HELOC vs. Home Equity Loan

<cite index=”68-1″>A cash-out refinance replaces your existing mortgage while home equity loans and HELOCs involve taking on an additional debt on top of your current mortgage</cite>. <cite index=”68-1″>Home equity loans and HELOCs may be quicker to close, but cash-out refinances often offer lower interest rates</cite> since the entire balance is priced as a first-lien mortgage. The trade-off: a cash-out refinance means restarting your amortization on your full mortgage balance, which can mean paying more total interest over time if you had a much lower rate on your original loan.

When a Cash-Out Refinance Calculator Points You Elsewhere

A cash-out refinance calculator is most valuable when it also helps you recognize when a cash-out refinance isn’t your best move. Because a cash-out refinance replaces your entire mortgage, running the numbers through a cash-out refinance calculator only tells half the story if you don’t also compare your new blended rate against your current one.

Questions your cash-out refinance calculator result should prompt

Is my current mortgage rate meaningfully lower than today’s rates? If so, a cash-out refinance calculator might show attractive available cash, but you’d be trading a low rate on your entire balance for a higher one — a HELOC or home equity loan might preserve your original rate while still accessing equity.
How does the new monthly payment compare to my current one? A cash-out refinance calculator should always show your new full payment, not just the cash amount, since refinancing resets your amortization on the entire loan balance.
Do closing costs eat too much into my net cash? If a cash-out refinance calculator shows a small net cash amount after 2%–5% closing costs, a smaller, cheaper HELOC draw might make more financial sense for the same purpose.

Using a cash-out refinance calculator alongside a HELOC or home equity loan calculator, rather than in isolation, gives you the full picture before you replace your mortgage.

Frequently Asked Questions

How much equity do I need for a cash-out refinance?

<cite index=”47-1″>Most lenders require you to retain at least 20% equity after closing, meaning the new mortgage is generally limited to 80% of your home’s appraised value for conventional and FHA programs</cite>.

Does a cash-out refinance always mean a higher interest rate?

Not necessarily compared to your current rate — it depends entirely on where market rates sit relative to your existing mortgage. However, cash-out refinance rates typically run slightly higher than a standard rate-and-term refinance on the same loan program, since lenders view cash-out transactions as carrying more leverage risk.

Is there a waiting period before I can do a cash-out refinance?

<cite index=”49-1″>Conventional cash-out refinances typically require around six months of seasoning before closing</cite>, meaning you generally need to have owned the home for at least that long.

What closing costs should I expect?

<cite index=”48-1″>Expect 2%–5% in closing costs on a cash-out refinance</cite>, calculated on the full new loan balance — not just the cash-out portion — since you’re originating an entirely new mortgage.

Related Calculators

In summary, a cash-out refinance calculator is most accurate when it applies your specific loan program’s LTV limit — since the gap between an 80% conventional cap and a 90-100% VA cap can mean tens of thousands of dollars in different available cash on an identical home.

Note: This calculator and article are provided for general educational and informational purposes only and do not constitute financial or lending advice. Cash-out refinance LTV limits, credit requirements, and closing costs vary by lender and loan program, and change over time. Always confirm current requirements directly with a licensed mortgage lender.