Cash-out refinance calculator
Cash out is the new loan minus the old payoff and the closing costs. In the illustration below, a building worth $4,000,000 refinanced at 70% LTV with $1,500,000 still owed and 2% in costs puts $1,244,000 in your account. The calculator also caps the loan at the lender's DSCR minimum, which is where most cash-out plans actually stop.
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Cash to you at closing
$877,381
–
Estimate from your inputs, not a quote.
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Why the coverage test usually decides
When a building has gained value, LTV looks generous. But the new, larger loan has to be paid from the same NOI, at today's rate. In the illustration, LTV allows $2,800,000; add $230,000 of NOI, a 6.50% rate on a 30-year amortization and a 1.25x minimum, and the loan falls to $2,425,899. Cash to you drops from $1,244,000 to $877,381. The calculator shows both tests and marks the one that binds.
Cash-out rules by program
| Program | Cash-out rule |
|---|---|
| FHA 223(f) | Greater of 80% LTV or the cost to refinance1 |
| HUD 232/223(f) healthcare | No equity take-out on 232/223(f)2 |
| Fannie Mae multifamily | On a cash-out refinance, Fannie Mae lenders must document how much hard equity remains after the new loan3 |
| Freddie Mac Conventional Small | No refinance test at 1.40x amortizing DCR or higher and 60% LTV or lower4 |
| SBA 504 refinance without expansion | 90% of the refinancing project value5 |
Cash-out is common, not exotic. In the 2025 HMDA data, 48.9% of 2025 multifamily originations were refinances (incl. cash-out)6, and 14.0% were cash-out refinances6.
What lenders check on a cash-out
- Seasoning. How long you have owned the property and whether the value rise is documented (improvements, signed leases), not just an appraisal.
- Equity left behind. Your hard equity after the new loan, which is why the calculator reports equity left in dollars and as a share of value.
- Use of proceeds. Reinvestment, a partner buyout or capital improvements read better than cash leaving the deal.
- The prepayment premium on the old loan. It is part of the payoff, and on yield maintenance or defeasance it can be large enough to sink the refinance. Price it first.
Edge cases
- Negative cash. If the new loan does not cover payoff and costs, the result goes negative: that is cash you would bring to closing, and it is really a refinance gap.
- A second lien instead. If the first mortgage carries a heavy prepayment premium, a supplemental or second loan can pull equity without retiring it. Fannie Mae and Freddie Mac both offer supplemental loans on their own first mortgages; Fannie Mae's go to as high as 70% LTV, depending on asset class and use of proceeds7.
Method and formula
LTV loan = value x max LTV / 100 DSCR loan = NOI / (min DSCR x loan constant) loan constant = 12 x monthly payment on $1 new loan = the smaller of the two closing costs = new loan x cost % cash to you = new loan - payoff - closing costs; equity left = value - new loan
Questions people ask
How much cash can I take out of a commercial property?
The new loan is the smallest of what the lender’s LTV limit, DSCR minimum and any debt-yield floor allow on today’s value and income. Subtract the payoff and closing costs and that is the cash. Lenders often set a lower LTV for cash-out than for a purchase or a rate-and-term refinance.
Is cash-out from a refinance taxable?
Loan proceeds are borrowed money, not income, so they are generally not taxed when received. How you use them and how interest is deducted are tax questions for your accountant.
Do lenders care what I do with the cash?
Yes. Many ask for a use-of-proceeds statement, and agency lenders must document how much real equity stays in the deal. Cash that goes back into the property or another investment reads better than cash that leaves the business.
Related tools and guides
Sources
- HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021), as of March 19, 2021
- HUD Handbook 4232.1, Section II Production, Chapter 2 Program Overview, as of January 12, 2017
- Fannie Mae Multifamily Selling and Servicing Guide, Part II, Section 205 Cash Out Analysis, as of October 26, 2026
- Freddie Mac Multifamily, Optigo Conventional Small Term Sheet, as of April 2026
- SBA SOP 50 10 8.1, Lender and Development Company Loan Programs (effective Oct 1, 2026), as of October 1, 2026
- CFPB/FFIEC HMDA 2025 public data, multifamily originations (Data Browser), as of December 31, 2025
- Fannie Mae Multifamily, Supplemental Mortgage Loans Term Sheet, retrieved November 1, 2026
- CRED iQ, CRE Loan Spreads Tighten Across Property Types (Apr 17, 2026), as of March 31, 2026
- KKR Real Estate Finance Trust 10-Q, Q3 2026, as of September 30, 2026
- Granite Point Mortgage Trust 10-Q, Q2 2026, as of June 30, 2026
- Blackstone Mortgage Trust 10-Q, Q3 2026, as of September 30, 2026
- Northmarq, Rates & Spreads (Multifamily Conventional), as of October 22, 2026
- U.S. Department of the Treasury, daily par yield curve rates, as of October 30, 2026
- Federal Reserve Bank of New York, as of October 30, 2026
How we check figures: methodology and editorial policy.
Get financing for this deal
Send the property and the loan once. A person at Janover Capital LLC reads it, tells you which programs fit and replies, usually within one business day.