Cash-out refinance payment calculator

Model a fixed-rate refinance that repays the current balance and adds cash you want to receive. Choose whether closing costs are paid upfront or added to the new loan. The results show the new principal, monthly principal and interest payment, total scheduled interest, and the upfront costs under your choice.

Worked example from an official source

Source: Federal Reserve payment example.

For cash-out use, begin with this balance and enter the cash you actually want to receive. The tool adds your requested cash and any financed costs before calculating the new payment.

Build the new loan amount

The calculator starts with the outstanding balance you enter. It adds requested cash. If you select financed closing costs, it also adds those costs to principal. If you leave that option unselected, closing costs remain an upfront expense and are excluded from the borrowed amount. Requested cash means the cash amount after those separate costs, rather than the total new principal. This distinction keeps the calculator from subtracting a cost you already intend to finance or from treating the existing balance as money you receive.

Understand what cash out changes

The Federal Reserve refinancing guide describes cash-out refinancing as borrowing more than the balance owed and receiving the difference in cash. It also explains that taking out equity reduces the amount of the home you own. This payment calculator does not estimate property value, available equity, a maximum borrowing percentage, or approval. Entering a cash request only creates an arithmetic scenario. It does not mean the requested loan is available. The saved mortgage survey rate is a purchase application average and is not a price for a cash-out loan.

Compare the added monthly payment

The additional payment in the result compares your new principal with a loan that refinances only the existing balance at the same entered rate and term. It isolates the payment effect of requested cash plus any financed costs. It does not compare the new payment with your actual current payment because this tool does not ask for the current rate or remaining term. Use the homepage refinance comparison to examine those inputs. A lower quoted rate can still accompany a larger loan amount, so read the new principal alongside the payment.

Review financed costs and interest

When costs are financed, they become borrowed principal and are repaid with interest over the new loan term. The Federal Reserve explains this effect of rolling refinancing fees into the loan. The tool shows the upfront cost as zero when the entered costs are financed, but the principal and payment still include them. Zero upfront costs therefore does not mean the costs disappeared. When costs are paid upfront, they do not contribute to the interest total calculated here. The interest total assumes the loan remains outstanding for the full term with regular scheduled payments and no extra principal.

Use the result as a document comparison

Replace the survey rate with the fixed note rate for the scenario you are reviewing. Keep property taxes, insurance, mortgage insurance, and other recurring charges outside the principal and interest result. The CFPB payment explanation describes why a full monthly bill can be higher. Verify how your proposed loan treats costs and cash before entering them, then compare the principal and term as well as the payment. This page does not calculate tax deductions or compare the cost of other borrowing arrangements.

How it works

P is the borrowed principal, M is the monthly principal and interest payment, r is the monthly interest rate, and n is the number of monthly payments. At a zero interest rate, M = P / n. The CFPB payment explanation describes a fixed-rate payment that fully repays the loan by the end of its term. This is the standard amortization formula for that payment.

New principal = current balance + requested cash + closing costs if financed. Total interest = monthly payment * number of payments - new principal. Additional monthly payment compares this loan with just the balance at the same rate and term. The Federal Reserve guide explains cash out and financing costs into principal.