Mortgage Proceeds Calculator
The headline loan figure on a refinance is not the number that reaches your account. The old mortgage is paid off first, then origination fees, appraisal, title, prepaid interest and escrow take their cut, and what is left, the net proceeds, can be tens of thousands less than the loan you signed for. This calculator walks the full settlement waterfall: enter your home value, existing balance, new loan terms and an itemized fee list, and get net proceeds, the cash-out amount, the new monthly payment, LTV and equity, and total loan cost in one card. This is the borrower’s settlement-cash view, not the investor’s deal view; the companion mortgage profit calculator models the profitability of a mortgaged rental property instead.
Net mortgage proceeds (cash to you)
The APR shown is a simplified estimate (note rate plus fees spread over the loan), not a Regulation Z APR. Break-even on closing costs needs your current payment: divide total closing costs by your monthly payment savings.
Quick Answer
On the pre-filled example, a $400,000 home with a $180,000 existing mortgage refinanced into a $320,000 loan at 6.5% for 30 years nets $129,300.00 in cash after $10,700.00 in total closing costs. The new payment is $2,022.62 a month, the LTV is 80.0%, and $80,000.00 of equity (20.0%) stays in the home. Net proceeds = new loan minus existing payoff minus every closing cost.
Key takeaways
- Net proceeds are always lower than the loan amount: the old payoff goes first, then six itemized fee lines.
- Origination is charged as a percent of the new loan, so bigger loans pay bigger fees automatically; 1% on $320,000 is $3,200.
- At or below 80% LTV you avoid the PMI conversation entirely; the results card color-codes your LTV at 80 and 90.
- The simplified APR on the results (9.844% on the example) is higher than the 6.5% note rate because it folds the $10,700 of fees into the loan cost.
- The loan purpose dropdown labels your transaction; it does not change any number on the card.
- Quick Answer
- How to use the mortgage proceeds calculator
- The proceeds formula
- Worked example: the $129,300 settlement
- Watch the 80% LTV line
- Break-even: when refinancing pays for itself
- Why the purpose dropdown does not change the numbers
- Tax and term notes
- What competing calculators miss
- Frequently asked questions
- Add This Calculator to Your Website
- References
How to use the mortgage proceeds calculator
Enter your current home value, the existing mortgage balance being paid off, and the new loan amount with its purpose label. Add the interest rate and term, then itemize the closing costs: flat closing costs, origination fee percent, appraisal, title insurance, prepaid interest, and escrow. Press Calculate Proceeds for the full waterfall from gross loan to net cash. The results stay hidden until you calculate, and Reset restores the worked example.
- Set the three money figures: home value, existing payoff, new loan. The loan cannot exceed the home value.
- Pick the purpose label: rate-and-term refinance, cash-out, HELOC, or second mortgage. It names the transaction; see the section below for why it does not move the numbers.
- Enter rate and term: they drive the new monthly payment and the total-interest line, not the proceeds figure.
- Itemize every fee: flat costs, origination percent, appraisal, title, prepaid interest, escrow. Blank fields count as zero, which is how no-fee estimates are modeled.
- Read the card: net proceeds first, then the cash-out amount (new loan minus payoff, never negative), LTV, remaining equity, monthly payment, total interest, and the simplified APR.
The proceeds formula
Net proceeds = new loan amount minus existing mortgage balance minus total closing costs, where total closing costs = flat closing costs + (new loan x origination %) + appraisal + title + prepaid interest + escrow. The monthly payment uses the standard amortization formula: P&I = loan x (r(1+r)^n) / ((1+r)^n – 1), with r the monthly rate and n the number of payments. LTV is new loan / home value x 100, and remaining equity is home value – new loan.
Total closing costs = Flat costs + (Loan × Origination %) + Appraisal + Title + Prepaid interest + Escrow
P&I = Loan × r(1+r)n ÷ ((1+r)n − 1)
The cash-out amount is simpler: new loan minus existing balance, floored at zero. It is the equity you pull out before fees; the net proceeds figure is what is left after fees eat into it. The simplified APR estimate adds the fee load to the note rate: rate + (total costs / loan) x 100. On the worked example that is 6.5 + (10,700 / 320,000) x 100 = 9.844%, a rough fee-aware rate, not a Regulation Z APR.
Worked example: the $129,300 settlement
Home value $400,000, existing balance $180,000, new loan $320,000 (80% LTV), 6.5% rate, 30-year term, $3,000 closing costs, 1% origination ($3,200), $500 appraisal, $1,200 title, $800 prepaid interest, $2,000 escrow. The fee waterfall:
| Fee line | Amount |
|---|---|
| Flat closing costs | $3,000.00 |
| Origination (1% of $320,000) | $3,200.00 |
| Appraisal | $500.00 |
| Title insurance | $1,200.00 |
| Prepaid interest | $800.00 |
| Tax and insurance escrow | $2,000.00 |
| Total closing costs | $10,700.00 |
Net proceeds = $320,000 − $180,000 − $10,700 = $129,300.00. Monthly P&I = $2,022.62. LTV = 80.0%; remaining equity = $80,000.00 (20.0%); cash-out amount = $140,000.00; total interest over 30 years = $408,142.36; simplified APR = 9.844%. The badge under the results reads “you keep 40.4% of the new loan”, which is the real story of a cash-out refinance: most of the gross loan repays the old debt, fees take the next cut, and the remainder is yours. Type these numbers into the calculator and every figure reproduces exactly.
Watch the 80% LTV line
Most conventional lenders cap cash-out refinancing at 80% loan-to-value, meaning you must keep at least 20% equity after the new loan funds. Cross above 80% and you typically face private mortgage insurance or a higher rate; some loan types (VA, for qualifying borrowers) allow higher. The result card color-codes your LTV: green at or below 80%, amber to 90%, red above.
| LTV band | Card color | What it usually means |
|---|---|---|
| At or below 80% | Green | Best terms on most conventional cash-out refis; no PMI. |
| 80% to 90% | Amber | Possible with PMI or pricing adjustments on many programs. |
| Above 90% | Red | High-cost territory; some programs cap out before 100%. |
If your planned loan lands in amber or red, the fix is usually a smaller new loan, which also shrinks the origination fee (charged as a percent of the loan) and raises the equity cushion. The cost to refinance mortgage calculator models the fee side alone if you want to price the closing table first, and the mortgage to debt ratio calculator checks whether the new payment still fits your debt load.
Break-even: when refinancing pays for itself
Closing costs are only worth paying if the monthly savings repay them. The honest break-even is total closing costs / monthly payment savings: $10,700 in costs divided by $300 in monthly savings = about 36 months to break even. If you plan to sell or refinance again before that point, the refinance loses money. This is the calculation to run before you sign, not after, because the proceeds figure tells you what you get at closing, not whether the deal was worth doing.
There is a second, quieter cost: the term reset. Refinancing into a new 30-year loan can lower the payment while increasing total lifetime interest, because the clock restarts. Compare the total interest line on the results card, not just the monthly figure. A useful follow-up is the home loan refinance calculator, which frames the rate-and-term decision directly, while the mortgage interest deduction calculator estimates the tax side of the interest you will pay.
Why the purpose dropdown does not change the numbers
The loan purpose select, refinance, cash-out refinance, HELOC, or second mortgage, is a label for your own bookkeeping. The calculator never reads it: the waterfall math is identical for every choice, which you can verify by switching the dropdown and recalculating. That is stated openly here because several rival tools imply the loan type changes the arithmetic, and it does not on this card.
The honest limitation behind that choice: a HELOC is usually drawn in stages against a credit limit and charged interest only on what you draw, so a single “new loan amount” waterfall does not describe how HELOC cash actually arrives. If you are modeling a line of credit, treat the result as the full-draw, fully-funded picture, not the month-by-month reality.
Tax and term notes
If cash-out funds go directly into substantial capital improvements on your primary home, the mortgage interest on those funds may be tax-deductible; personal use generally is not. The IRS rules on which acquisition debt qualifies are in IRS Publication 936.
What competing calculators miss
Refinance and proceeds tools fall into three camps, and each leaves something on the table:
- Break-even refinance analyzers: strong on the monthly-savings math and the amortization-clock warning, but they never answer the settlement question: how much cash actually arrives. They model the loan, not the closing table.
- Cash-out refinance pages with lender ceilings: good on LTV caps by lender and program, but they itemize closing costs as one percentage, so you cannot see which fee line is doing the damage, and the escrow seed and prepaid interest disappear.
- Thin proceeds generators: a handful of inputs, a single net figure, no payment, no LTV, no equity, no APR context, and usually no explanation of the arithmetic.
- The gap this page fills: the full settlement waterfall in one card, new loan minus old payoff minus six itemized fee lines, with the amortized payment, LTV and equity, the cash-out amount, lifetime interest, and a fee-aware APR beside it. The purpose label is honestly inert, the APR is honestly simplified, and every number on the worked example reproduces in the tool.
Frequently asked questions
Mortgage proceeds are the cash you actually receive from a mortgage transaction after the existing loan is paid off and all closing costs and fees are deducted. The figure is almost always lower than the headline loan amount, sometimes by tens of thousands of dollars.
Subtract the existing mortgage balance and total closing costs from the new loan amount: net proceeds = new loan − existing payoff − (flat costs + origination + appraisal + title + prepaid interest + escrow). Itemize every fee line instead of guessing one lump sum, because the small lines add up fast.
The dropdown is a label only. The calculator does not read it, so refinance, cash-out, HELOC, and second mortgage all produce the same numbers from the same inputs. It is kept for your own bookkeeping and is stated openly as inert rather than implied to matter.
Commonly 2% to 5% of the loan amount, covering origination fees, appraisal, title insurance, government recording fees, prepaid interest, and escrow reserves. The worked example on this page lands at $10,700 on a $320,000 loan, about 3.3%. Always compare the Loan Estimate from multiple lenders.
At or below 80% for most conventional loans, which keeps at least 20% equity in the home and avoids private mortgage insurance. Above 80% you will usually pay mortgage insurance or accept worse terms; some programs such as VA allow higher LTVs for qualifying borrowers.
Divide total closing costs by the monthly payment savings. That is your break-even in months: $10,700 in costs divided by $300 in monthly savings means about 36 months before the refinance pays off. If you will sell or refinance again before that, the refinance loses money.
No. It is a simplified estimate: the note rate plus fees spread over the loan amount. A Regulation Z APR amortizes fees precisely over the loan term and will differ. Use the official Loan Estimate from your lender for the binding figure.
The calculator treats any rate at or below zero as a zero-interest loan and divides the loan evenly across the term. The simplified APR can then print below zero, which is a signal that the input is not realistic, not a real rate.
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References
- Consumer Financial Protection Bureau. What fees or charges are paid when closing on a mortgage and who pays them? Accessed October 23, 2026.
- Consumer Financial Protection Bureau. What is a Loan Estimate? Accessed October 23, 2026.
- Consumer Financial Protection Bureau. What is private mortgage insurance? Accessed October 23, 2026.
- Internal Revenue Service. Publication 936, Home Mortgage Interest Deduction. Accessed October 23, 2026.
- U.S. Department of Veterans Affairs. VA cash-out refinance loan. Accessed October 23, 2026.
- Federal Housing Finance Agency. FHFA House Price Index. Accessed October 23, 2026.