Cash-Out Refinance Calculator
Calculate cash-out refinance payments, LTV ratio, break-even point, and total interest costs. Compare current vs. new mortgage side by side.
About
A cash-out refinance replaces your existing mortgage with a larger loan, letting you extract the difference as liquid cash. The critical variable is LTV (Loan-to-Value ratio). Most lenders cap conventional cash-out refinances at 80% LTV. Exceeding that threshold triggers private mortgage insurance or outright denial. This calculator computes your new monthly payment using standard amortization, compares total interest cost against your current loan, and identifies the break-even month where closing-cost recovery begins. Miscalculating any of these figures risks overpaying tens of thousands in interest or discovering post-closing that your equity cushion is dangerously thin.
The tool assumes fixed-rate fully amortizing loans. Adjustable-rate products, interest-only periods, and balloon structures require different models. Closing costs typically range from 2% to 5% of the new loan amount. Failing to account for these costs inflates the effective cash received and distorts break-even analysis. Pro tip: if your break-even exceeds 36 months and you plan to sell before that, the refinance costs more than it returns.
Formulas
The monthly payment on a fixed-rate fully amortizing loan is computed using the standard annuity formula:
where M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12).
The Loan-to-Value ratio determines lender risk exposure:
where New Loan Amount = Current Balance + Cash Out + Closing Costs (if rolled into loan).
Break-even period identifies when cumulative savings offset refinance costs:
where Mcurrent = current monthly payment and Mnew = new monthly payment. If Mnew ≥ Mcurrent, there is no payment-based break-even. The cash received must then justify the higher cost through investment return or debt consolidation savings.
Total interest paid over the life of the loan:
Reference Data
| LTV Range | Typical Rate Premium | PMI Required | Lender Risk Tier | Max Cash-Out (Conv.) | Credit Score Min | DTI Max | Typical Closing Cost | Seasoning Req. | Notes |
|---|---|---|---|---|---|---|---|---|---|
| 0 - 60% | 0.000% | No | Low | 80% | 620 | 45% | 2 - 3% | 6 months | Best pricing tier |
| 60.01 - 70% | 0.125% | No | Low-Med | 80% | 640 | 45% | 2 - 3% | 6 months | Minimal rate adjustment |
| 70.01 - 75% | 0.250% | No | Medium | 80% | 660 | 43% | 2.5 - 4% | 6 months | Standard conventional |
| 75.01 - 80% | 0.500% | No | Medium-High | 80% | 680 | 43% | 3 - 5% | 6 months | Max conventional LTV |
| 80.01 - 85% | 0.750% | Yes | High | FHA only | 580 | 50% | 3 - 5% | 12 months | FHA cash-out rules apply |
| 85.01 - 90% | 1.000% | Yes | High | VA only | 620 | 41% | 3 - 5% | 6 months | VA allows up to 90% |
| 90.01 - 95% | 1.500% | Yes | Very High | VA only | 640 | 41% | 4 - 6% | 12 months | Limited availability |
| 95.01 - 100% | 2.000%+ | Yes | Extreme | VA full entitlement | 660 | 41% | 4 - 6% | 12 months | VA-eligible veterans only |
| Common Closing Cost Breakdown | |||||||||
| Appraisal Fee | $300 - $600 | Title Insurance | $500 - $1,500 | Origination Fee | 0.5 - 1.5% of loan | ||||
| Recording Fee | $50 - $250 | Attorney Fee | $500 - $1,000 | Credit Report | $25 - $50 | ||||
| Flood Cert | $15 - $25 | Survey | $150 - $400 | Prepaid Interest | Varies by close date | ||||
| Escrow Reserves | 2 - 6 months taxes/ins. | Transfer Tax | State-dependent | Discount Points | 1 point = 1% of loan | ||||