Cash-Out Refinance Calculator: How Much Can You Borrow?

If you’re considering a cash-out refinance, the first question that usually comes to mind is:

“How much can I actually borrow?”

The answer depends on your home’s value, your current mortgage balance, your loan type, and your lender’s rules. While every lender calculates things slightly differently, the core math is simple — and once you understand it, you can estimate your cash-out potential in minutes.

This guide walks you through the formula, examples, limits by loan type, how lenders determine your maximum loan amount, and how to use a cash-out refinance calculator to see your real borrowing power.

Key Takeaways

✅ You can typically borrow up to 80% of your home’s value with a conventional cash-out refinance, but exact requirements vary by lender.

✅ The FHA allows up to 80% LTV, while VA loans may allow up to 90–100% depending on the lender.

✅ Your maximum cash is the difference between your new loan amount and your current mortgage balance.

✅ Your credit score, DTI, and appraisal value can raise or lower your maximum cash-out.

💡 Pro Tip: Before doing all this math yourself, you can upload a single Loan Estimate to Fincast and let competing lenders show you their maximum cash-out offers—often revealing thousands more in available equity.

How a Cash-Out Refinance Calculator Works

A cash-out refinance calculator uses a simple formula to estimate how much you can borrow:

Maximum Loan Amount – Current Loan Balance = Estimated Cash Out

But the key part is determining the maximum loan amount, which is based on:

• Your home’s appraised value

• Your lender’s maximum Loan-to-Value (LTV) limit

• Your loan type (Conventional, FHA, VA, Jumbo)

Step-by-Step: Estimate Your Cash-Out Amount

Use these steps to manually estimate your borrowing power —the same math a calculator uses behind the scenes.

Step 1: Find Your Home’s Current Value

You can estimate using:

• Comparable recent sales

• Online valuation tools

• A real estate agent’s CMA

• Formal appraisal (the final number lenders use)

Let’s assume your home is worth $500,000.

Step 2: Know Your Loan Type’s Max LTV

Typical limits, but they vary by lender:

• 80% LTV → Conventional & FHA

• 90–100% LTV → VA (varies by lender)

• 60–70% LTV → Jumbo

For a conventional loan:

Maximum loan = Home value × 80%

$500,000 × 0.80 = $400,000

Step 3: Subtract Your Current Mortgage Balance

You owe: $300,000

The max loan is: $400,000

Cash available is:

$100,000 (minus closing costs)

This is the number most cash-out calculators will show you.

Step 4: Adjust for Closing Costs

Closing costs are typically 2–5% of the new loan.

If your new loan is $400,000:

• 2% = $8,000

• 5% = $20,000

Your actual cash in hand becomes closer to:

$80,000–$92,000 depending on fees.

💡 Pro Tip: Some lenders allow you to roll closing costs into the loan amount, but that reduces the cash you receive. Shopping for the most competitive loan terms can maximize your cash.

Maximum Cash-Out Limits by Loan Type

Different loan programs allow different LTV caps. The calculator must use the right one, although the results may not be 100% accurate if lenders have lower limits.

1️⃣ Conventional Loans

Max LTV: 80%

• Cannot exceed this unless it’s a special program

• PMI may be required if you exceed 80% LTV

• Best for borrowers with strong credit

2️⃣ FHA Cash-Out Refinance

Max LTV: 80%

• Requires MIP (mortgage insurance)

• Requires 12 months of on-time payments

• More flexible credit requirements

3️⃣ VA Cash-Out Refinance

Max LTV: Up to 90%

• Extremely flexible — lenders often cap at 85-90%

• No PMI

• Best option for eligible veterans needing large cash amounts

4️⃣ Jumbo Cash-Out Refinance

Max LTV: 60–70%

• Very restrictive due to high risk

• Requires high credit scores

• Large cash-out amounts are possible only with strong financials

Cash-Out Refinance Calculator Examples

Example 1: Conventional Cash-Out (80% LTV)

• Home value: $600,000

• Max loan: $480,000

• Current mortgage: $350,000

• Closing costs: $10,000

Cash out = $480,000 – $350,000 – $10,000 = $120,000

Example 2: FHA Cash-Out (80% LTV)

• Home value: $420,000

• Max loan: $336,000

• Balance: $290,000

• Closing costs: $8,000

Cash out = $38,000

Example 3: VA Cash-Out (95% LTV)

• Home value: $500,000

• Max loan: $475,000

• Balance: $320,000

• Closing costs: $9,000

Cash out = $146,000

Example 4: Jumbo Cash-Out (65% LTV)

• Home value: $1,200,000

• Max loan: $780,000

• Balance: $600,000

• Closing costs: $18,000

Cash out = $162,000

What Affects Your Maximum Cash-Out Amount?

Even if you know your LTV, several factors can influence the final number a calculator estimates.

1️⃣ Your Credit Score

Higher credit scores → better pricing → higher approval odds

Typical minimums, but they often vary by lender:

• 620+ for conventional

• 580+ for FHA

• 620–660 for jumbo

• 620+ for many VA lenders

2️⃣ Your Debt-to-Income Ratio (DTI)

Debt-to-income ratios vary by lender, but here are the general requirements:

• <43% for conventional

• <50% for FHA

• <40% for jumbo

• VA: flexible

If DTI is too high, lenders may reduce your max loan amount.

3️⃣ Your Home’s Appraised Value

A low appraisal:

• Shrinks your max loan

• Reduces your cash-out amount

• May jeopardize the entire refinance

4️⃣ Loan Type & Occupancy

• Primary residences → highest LTV limits

• Second homes → reduced LTV

• Investment properties → lowest LTV (65–75%)

5️⃣ Payment History

Missed or late payments can:

• Trigger higher pricing

• Lower your maximum loan

• Make some loan programs unavailable (FHA requires 12 months perfect history)

When It May Make Sense to Maximize Your Cash-Out

✔ When it may make sense to borrow more:

• You’re consolidating high-interest credit card debt

• You’re funding value-adding renovations

• You’re replacing personal loans with lower-rate mortgage debt

• You’re relocating equity for long-term planning

• You want to eliminate PMI through a new appraisal

⚠ When it’s risky:

• You’re using equity for recurring expenses

• You’re planning to sell the home within 1–3 years

• Your new mortgage rate is significantly higher

• You’re stretching your DTI to the limit

• You have limited savings or emergency funds

💡Pro tip: Two lenders could analyze the same score and produce wildly different offers. This is exactly where Fincast gives homeowners a significant advantage. Upload a single Loan Estimate and get competing offers to see where your offer stands.

How Fincast Maximizes Your Cash-Out Potential 🚀

Lenders vary enormously in:

• Cash-out limits

• Closing costs

• Rate adjustments

• Appraisal requirements

• LTV rules

This means two lenders could quote you $50,000 vs. $80,000 in cash-out from the same starting numbers. That’s why comparing your options is essential. You can shop around manually or use Fincast to make the process easier. All you need is a single Loan Estimate from a lender to start. You don’t have to worry about extra credit pulls, sharing your personal information, or warding off spam calls.

Here’s how Fincast works:

1️⃣ Upload your Loan Estimate

2️⃣ Let vetted lenders compete to beat your offer

3️⃣ Compare closing costs, APR, PMI/MIP, and loan limits

4️⃣ Choose the lender offering the highest cash-out and lowest overall cost

💡 Pro Tip: Benchmarking is essential—cash-out refis are among the most inconsistent loan types across lenders.

FAQs

1. How much can I borrow in a cash-out refinance?

Typically, up to 80% of your home’s value, minus your existing loan balance and closing costs, but it depends on the loan type and lender requirements.

2. Can I borrow 100% of my home’s value?

Only some VA lenders allow this; most cap it at 85–90%.

3. Do I need an appraisal?

For cash-out refinances: almost always yes, but exact requirements vary by lender.

4. Is the cash taxable?

Borrowing from your home’s equity may not be taxable, but it depends on how you use the funds and what deductions you take. Consult with a licensed tax professional for your situation.

5. Can I roll closing costs into the loan?

Yes, but this reduces your cash in hand.

Bottom Line

A cash-out refinance calculator can give you a quick estimate of how much you can borrow — but the real number depends on your loan type, appraisal, closing costs, and lender pricing.

You’re in the strongest position when:

✅ You understand your home’s value and max LTV

✅ You compare real lender offers

✅ You know how closing costs impact your cash-out

✅ You upload your Loan Estimate to Fincast to maximize your borrowing power

Pro Tips (Save These!)

💡 Keep your LTV at or below 80% for best pricing

📈 Prepare for your appraisal to maximize value

⚠ Factor in closing costs — they reduce cash received

📊 Compare offers from multiple lenders

🚀 Use Fincast to benchmark your cash-out refi instantly

Action Checklist

• Estimate your home’s value

• Find your loan program’s max LTV

• Calculate your maximum loan amount

• Subtract your current mortgage balance

• Compare different lender estimates

• Upload your Loan Estimate to Fincast

• Choose the offer that provides the most cash at the lowest cost

👉 Ready to see your true cash-out potential? Upload your Loan Estimate to Fincast in under 2 minutes — where vetted lenders compete to give you the highest cash-out and best possible terms. No spam. No extra credit pulls

This article provides educational information only and isn't personalized financial advice. Mortgage requirements vary by lender and your individual situation. For guidance specific to you, consult with a licensed mortgage professional.