Cash-Out Refinance Calculator

Calculate new mortgage payment and cash received from a cash-out refinance.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

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New Monthly Payment

$2,140.37

Cash Received

$50,000.00

New LTV

73.3%

Refinance Details

New Loan Amount$330,000.00
Max Loan (80% LTV)$360,000.00
EligibleYes
Total Interest$440,534.54
Total Cost$770,534.54

Use the Cash-Out Refinance Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A cash-out refinance replaces your existing mortgage with a larger one and hands you the difference in cash drawn from your home equity. With a 30-year fixed mortgage projected near 6.5% in 2026, the size of that new payment depends heavily on the rate you lock, so it pays to model the trade-off before committing equity you have spent years building.

To find your new loan amount, the tool adds the cash you want to pull out to your current mortgage balance, then applies the estimated 2026 rate to produce a fresh monthly principal-and-interest figure. Closing costs, which generally run 2% to 5% of the new loan, are also accounted for and can be folded into the financed balance rather than paid out of pocket.

Two details trip up many borrowers. Closing costs are easy to underestimate, yet they directly shrink the net cash that actually reaches you. And because a cash-out refinance resets the clock on your loan term, you may pay more total interest over the life of the mortgage even after years of on-time payments. Weighing both is the only way to judge whether the cash is worth its long-run price.

Example: Home Renovation Refinance

  1. 1 Input your current mortgage balance ($250,000), your home's estimated value ($400,000), your desired cash-out amount ($50,000 for a kitchen renovation), and an estimated 2026 interest rate (6.5%).
  2. 2 The calculator adds your desired cash-out to your current balance ($250,000 + $50,000 = $300,000). It then estimates closing costs (e.g., 3% of $300,000 = $9,000), making your new total loan $309,000. Using a 30-year term at 6.5%, it calculates your new monthly payment.
  3. 3 Your new mortgage payment will be approximately $1,953.58 per month (principal and interest), and you will receive $50,000 in cash for your renovation.
  4. 4 This cash-out refinance allows you to fund your kitchen renovation while consolidating your mortgage into a new loan. Compare this new payment to your current payment to assess the overall financial impact.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How does a cash-out refinance work?
You replace your existing mortgage with a new, larger one and receive the difference in cash. For example, if your home is worth $400,000 and you owe $200,000, you could refinance for $320,000 (80% LTV) and receive $120,000 cash minus closing costs.
Is a cash-out refinance a good idea?
It can be if you use the cash for high-value purposes like home improvements or paying off high-interest debt. However, you are increasing your mortgage balance, paying closing costs (2-5% of loan), and resetting your loan term. Avoid it for discretionary spending.
How much cash can I get from a cash-out refinance?
Most lenders allow a maximum of 80% loan-to-value (LTV), meaning you can borrow up to 80% of your home's appraised value. Subtract your current mortgage balance and closing costs to determine your net cash proceeds.