Cash-Out Refinance Calculator & Break-Even
Calculate cash-out refinance borrowing capacity, new monthly payments, closing cost break-even, and net cash in hand from home equity. 100% private in-browser tool.
Interactive WebAssembly Calculation Engine
This tool runs 100% in your local web browser tab. All amortization schedules, debt yield calculations, and tax deferral projections are computed client-side in WebAssembly. Zero bytes are uploaded to remote servers.
Use the interactive form above to adjust parameters, toggle extra principal schedules, stress-test interest rates, and export full reports to Excel (.xlsx) or CSV.
Underwriting Methodology & Mathematical Formulation
Our calculation algorithms strictly adhere to institutional lending conventions, CFPB disclosure rules, and statutory IRS definitions:
- Standard Annuity Formula: Monthly payment M = P * [r(1+r)^n] / [(1+r)^n - 1], calculating exact interest and principal allocations down to the penny.
- Zero-Roundoff Double Precision: Computations execute using standard IEEE 754 floating-point and integer math to match commercial bank loan documents.
- Sensitivity Analysis: Real-time stress testing against interest rate fluctuations, vacancy rate increases, and balloon maturity horizons.
Frequently Asked Questions
How does a cash-out refinance work?
A cash-out refinance replaces your existing mortgage with a new, larger loan balance, allowing you to withdraw the difference between the two loans in cash based on your accumulated home equity.
What is the maximum loan-to-value (LTV) permitted for a cash-out refinance?
Most conventional lenders cap cash-out refinances at 80% LTV on single-family primary residences. FHA loans permit up to 80% LTV, while VA cash-out refinances allow eligible veterans to borrow up to 90% or 100% of appraised home value.
How long does it take to break even on cash-out refinance closing costs?
Break-even time is calculated by dividing total closing costs (typically 2% to 4% of the new loan amount) by your monthly savings if your interest rate decreased. If your interest rate increased, the cost of funds must be compared against alternative borrowing options like HELOCs or personal loans.