Work out refinance cash out instantly with clear inputs, formula shown and shareable results.
A cash-out refinance replaces the existing loan with a larger one and releases the difference, less closing costs. The new loan is capped by the lender's loan to value limit on current value, so the cash available depends on how much the property has appreciated and how much principal has been repaid.
Cash out
Net cash = value x new LTV - existing balance - closing costs
Net cash = value x new LTV - existing balance - closing costs. A cash-out refinance replaces the existing loan with a larger one and releases the difference, less closing costs.
Loan proceeds are not income, so no tax arises on the release itself. Whether the interest is deductible depends on how the money is used, which varies by jurisdiction.
This calculator takes 4 inputs: Current property value, New loan to value, Existing loan balance, Closing costs. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.