What is a cash-out refinance and how does it work?

A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan amount and what you owe on your current mortgage is given to you as cash, which you can use for home improvements, debt consolidation, or other expenses.

How is the break-even point calculated?

The break-even point is the time it takes for the monthly savings from the lower interest rate to equal the upfront costs of refinancing. The calculator subtracts the new total payment from the old total payment and divides the refinancing costs by that monthly savings amount.

Can I use this calculator if I have an adjustable-rate mortgage?

This tool is designed for fixed-rate mortgages. If you have an adjustable-rate mortgage, you would need to estimate a future interest rate or use a different calculator that factors in rate adjustments over time.

What compounding frequency should I select?

Select the frequency that matches your loan agreement or region: Yearly for most US loans, Semi-annually for Canadian loans, Quarterly or Monthly for UK and US loans, depending on your specific lender's terms.

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Cash-Out Refinance Calculator

Provided byOmni Calculatoromnicalculator.com

Use the cash-out refinance calculator to see what would be the cost of your cash-out refinance loan.

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About this tool

What Cash-Out Refinance Calculator does

A cash-out refinance calculator helps homeowners explore the financial impact of replacing their current mortgage with a larger loan to access home equity. By inputting details like the original loan amount, new loan terms, and the desired cash-out amount, the tool estimates the new monthly payment, total interest paid, and the break-even point where refinancing costs are offset by savings. The output provides a side-by-side comparison of the current and proposed loan structures, showing differences in principal, payment, interest rate, and term length. This allows users to quickly assess whether the long-term savings justify the upfront costs of refinancing. The Omni Calculator version stands out for its detailed amortization breakdown and clear presentation of the cost-benefit analysis. It explicitly calculates the break-even timeline in years and months, showing exactly when the monthly savings will cover the refinancing fees. The interface supports various compounding frequencies relevant to different regions (Yearly, Semi-annually for Canada, Quarterly, Monthly for UK & US) and includes a specific field for mortgage points and refinancing costs. Unlike simpler calculators, it presents a full table comparing principal, monthly payment, interest rate, term, total interest, and total payments for both the old and new loans, making it easier to see the precise financial trade-offs at a glance.

Step by step

How to use the Omni Calculator Cash-Out Refinance Calculator

1
Enter the original mortgage amount and its current interest rate and term
2
Input the new loan amount, desired interest rate, and new loan term length
3
Specify the cash-out amount you wish to extract from your equity
4
Review the generated comparison table showing differences in monthly payment, total interest, and the break-even point

Is it right for you

Best for

Homeowners with significant equity who are considering refinancing to fund home improvements, consolidate debt, or cover large expenses and want to compare the long-term cost against their current mortgage.

Limitations

Results depend on the accuracy of the interest rate and term inputs provided by the user
Does not account for individual credit scores or lender-specific fees beyond the points field
Estimates are based on fixed-rate assumptions and may vary with actual loan offers

Questions

Cash-Out Refinance Calculator FAQ

What is a cash-out refinance and how does it work?: A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan amount and what you owe on your current mortgage is given to you as cash, which you can use for home improvements, debt consolidation, or other expenses.
How is the break-even point calculated?: The break-even point is the time it takes for the monthly savings from the lower interest rate to equal the upfront costs of refinancing. The calculator subtracts the new total payment from the old total payment and divides the refinancing costs by that monthly savings amount.
Can I use this calculator if I have an adjustable-rate mortgage?: This tool is designed for fixed-rate mortgages. If you have an adjustable-rate mortgage, you would need to estimate a future interest rate or use a different calculator that factors in rate adjustments over time.
What compounding frequency should I select?: Select the frequency that matches your loan agreement or region: Yearly for most US loans, Semi-annually for Canadian loans, Quarterly or Monthly for UK and US loans, depending on your specific lender's terms.

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