Free tool — cash-out refinance

cash-out refinance calculator.

A cash-out refinance replaces the loan on a property you already own with a larger one and hands you the difference at closing. Three numbers set the size of that check: what the property is worth today, the maximum LTV your lender will go to, and what you still owe. Everything after that is one question — does the rent still cover the bigger payment you just created? Enter the deal below and both halves are answered at once: the cash you walk away with, and the DSCR the lender will read on the new loan.

the property

current value / ARV ($)

existing loan balance ($)

max LTV (%)

the new loan

new rate (%)

term (years)

closing costs (% of loan)

rent & carrying costs

monthly rent ($)

taxes + insurance + other ($/mo)

cash out at closing

$78,250

after paying off the existing loan and closing costs

DSCR on the new payment

1.27

clears a typical 1.20 test with room — floors vary by lender

the cash-out math

new loan amount$225,000

less existing payoff($140,000)

less closing costs($6,750)

cash out at closing$78,250

the new payment

new P&I payment$1,535

taxes + insurance + other$550

new total payment$2,085

equity remaining

$75,000

new loan amount

$225,000

new monthly P&I

$1,535

closing costs

$6,750

cash-out refi · 101

The ceiling.
Then the test.

A cash-out refinance is settled by two numbers: the cap on the new loan, and whether the rent covers the payment that loan creates. Miss either and the equity stays where it is.

The ceiling.

New loan = appraised value × the lender's maximum LTV. Cash out = new loan − existing payoff − closing costs. On an investment property the cap usually sits around 75%, sometimes 80% for a strong file on a single-family — it varies by lender and by unit count. Most programs also want the property seasoned, roughly six to twelve months of ownership, before they will lend against today's value instead of what you paid.

new loanvalue × max LTV

you receiveloan − payoff − costs

typical cap~75% of value

seasoning~6–12 months

The test on the new payment.

Lenders do not underwrite the payment you have been making — they underwrite the one the refinance creates. Rent ÷ (new P&I + taxes + insurance + HOA) is the DSCR on the file, and a common floor is 1.20, with the better pricing generally starting near 1.25. Pull the maximum and the ratio drops with every dollar you take. The largest loan you qualify for and the largest loan you should take are rarely the same number.

lender readsrent ÷ new payment

common floor1.20

better pricing1.25+

hard stopunder 1.0

When it stops making sense.

The mistake is treating the proceeds as free money. A cash-out refinance reprices the whole balance, not just the slice you are pulling — so moving $30,000 can raise the rate on $200,000 you were already happy with. Add closing costs of roughly 2–5% of the new loan and a payment that eats the cash flow, and the trade can cost more than the money is worth. Only pull equity when the next deal earns more than the repriced debt costs.

repricesthe whole balance

costs~2–5% of new loan

watchcash flow after refi

red linenegative cash flow

FAQ

Before you pull equity.

Straight answers on limits, timing, taxes, and the ratio the lender actually reads.

— How much —

How much can I cash out refinance on a rental property?

Take the appraised value, multiply by the lender's maximum LTV — commonly around 75% on an investment property, sometimes 80% — then subtract the existing payoff and the closing costs. What is left is the check. On a $300,000 property at 75% LTV with $140,000 still owed and closing costs near 3% of the new loan, that lands around $78,000. The caps move by lender, unit count, and credit profile.

— Seasoning —

How long do I have to wait to cash out refinance?

Most lenders want the property seasoned for roughly six to twelve months before they will lend against the current appraised value instead of what you paid for it. Before that window, many programs cap the loan against your purchase price plus documented rehab, which is what quietly strands capital in a BRRRR. Seasoning rules vary by lender and by program, so confirm the exact window before you plan an exit around it.

— Taxes —

Is the cash from a refinance taxable?

Loan proceeds are generally not treated as income, because you are taking on debt rather than realizing a gain — that is the reason investors move equity with a refinance instead of a sale. How the interest is treated afterward depends on what the money is used for. Tax treatment varies by state and by situation, so consult a CPA before you file.

— The ratio —

What DSCR do I need on the new loan?

Lenders re-underwrite the property at the new, larger payment, not the one you have been making. Rent divided by the new principal and interest plus taxes, insurance, and HOA is the ratio they read, and a typical floor is 1.20, with better pricing usually starting near 1.25. Floors vary by lender. If the rent no longer covers the new payment, the fix is a smaller loan, not a different lender.

Live · all 50 states

Model the refinance
before you buy.

Verleon AI underwrites active listings across all 50 states — deal score, comps and ARV, DSCR, and the full BRRRR refinance math — so the exit is modelled before the offer goes out, not after the rehab is done.

Try Verleon AI →Run the full BRRRR model