Cash-Out Refinance a Car? Calculator and Costs

A cash-out car refinance replaces your current auto loan with a larger one and gives you some of the difference in cash, if a lender offers that option and approves the application. This calculator estimates a new loan’s monthly payment and total interest from its amount, APR, and term; it does not calculate your vehicle’s available cash-out amount or predict approval.

Formula

The calculator uses the standard fixed-payment amortization formula. It divides the loan amount multiplied by the monthly interest rate by one minus the discount factor for all monthly payments:

Monthly payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

• P is the new loan principal, in dollars.
• r is the monthly rate, calculated as APR ÷ 1,200. APR is entered as a percentage per year.
• n is the number of monthly payments, calculated as loan term in years × 12.

Total interest is estimated as the rounded monthly payment multiplied by the number of payments, minus the original principal: total interest = payment × n − P. The payment is rounded to cents before the total is calculated, as shown in the calculator.

Worked Example

Using the calculator’s default values: a $20,000 loan, 8% APR, and a five-year term:

1. Convert the APR to a monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Calculate the number of payments: 5 × 12 = 60.
3. Apply the payment formula: $20,000 × 0.0066667 ÷ [1 − (1 + 0.0066667)⁻⁶⁰] = approximately $405.53 per month.
4. Calculate total interest using the rounded payment: $405.53 × 60 − $20,000 = $4,331.80.

The estimated monthly payment is $405.53, and estimated total interest is $4,331.80.

Assumptions

• The APR stays fixed throughout the loan term.
• Payments are equal monthly payments, made at the end of each monthly period.
• Interest accrues monthly using APR divided by 12.
• The estimate excludes fees, taxes, insurance, and other costs because they are not calculator inputs.

How Cash-Out Car Refinancing Works

With a cash-out refinance, a new loan pays off the outstanding balance on the existing auto loan. If the new loan is larger than the payoff amount and eligible costs, the remaining amount may be paid to you. The actual amount available depends on the vehicle’s value, the current payoff, the proposed loan terms, and the lender’s requirements.

For example, suppose a car’s loan payoff is $12,000 and a lender approves a new loan of $15,000. Before any fees or other deductions, the difference is $3,000. That does not mean the borrower will necessarily receive $3,000: the lender may use a different vehicle valuation, limit the loan amount, or subtract costs. The calculator above estimates payments only after you know the proposed new loan amount and APR.

“Equity” is the difference between a vehicle’s value and the amount owed on it. Positive equity may be relevant to a cash-out application, but it is not a guaranteed cash amount. A vehicle’s value can vary by condition, mileage, market data, and the valuation method used.

How to Estimate the Cash and Compare Terms

To work out a possible cash-out amount, first get a current payoff figure from the existing loan servicer. A payoff figure can differ from the balance shown on a recent statement because interest may continue to accrue and the payoff may have a date limit. Then obtain the proposed refinance amount and identify any costs that would be included in the new loan or deducted from proceeds.

A simplified estimate is:

Possible cash received = new loan amount − current payoff − costs deducted or financed

This is arithmetic, not a prediction of eligibility or lender terms. Enter the full proposed new loan amount in the calculator to estimate its payment and interest. To compare scenarios, change one input at a time—such as the APR or term—and note that a longer term can reduce the scheduled monthly payment while increasing the number of months interest may accrue. Get the actual APR, term, amount financed, payoff, and itemized costs directly from the lender before relying on a comparison.

Costs, Risks, and Common Misunderstandings

Cash received is not free money: it is borrowed money secured by the vehicle under the new loan. If the refinance increases the balance, the borrower owes more against the car. If payments are missed, consequences depend on the loan agreement and applicable rules; read the contract and ask the lender how the vehicle secures the debt.

• Comparing only monthly payments: A lower payment may result from extending repayment over more months, not from paying less overall.
• Ignoring the payoff date: Request a payoff quote valid for the expected transaction date, and ask how any difference will be handled.
• Leaving out costs: Application, title, or other transaction costs may apply, depending on the offer. Ask for an itemized written breakdown rather than assuming the calculator includes them.
• Confusing car value with cash available: A valuation is not the same as a lender’s approved loan amount or the cash ultimately disbursed.

The calculator assumes the entered APR applies to the entire principal and remains fixed. It does not model irregular payments, a changing rate, payment dates that differ from monthly periods, prepayment, fees added to the balance, or a balloon payment. Actual statements can also differ slightly because of payment timing and rounding.

Frequently Asked Questions

Can you cash out refinance a car?
Some lenders offer auto refinance loans that provide cash beyond the existing payoff, subject to their terms and approval. Availability and the amount are not guaranteed; ask the lender what it offers and how it calculates the vehicle value and loan amount.

How much cash can I get from a car refinance?
There is no universal amount. A rough calculation subtracts the existing loan payoff and applicable costs from the proposed new loan amount. The lender’s valuation and terms determine whether that amount is available.

Does refinancing a car give you cash back?
It can, if the approved new loan exceeds the payoff and costs and the lender’s product provides the difference as cash. A standard refinance that only replaces the payoff may not provide extra funds.

Is cash-out refinancing the same as a car title loan?
No. A cash-out refinance replaces an existing auto loan with a new loan. A title loan is a separate type of borrowing secured by a vehicle title; products and terms differ, so review the actual agreement rather than treating the terms as interchangeable.

Will a longer car refinance term lower the payment?
With the same principal and APR, spreading repayment over more monthly payments generally lowers the scheduled payment, but the loan lasts longer and total interest may rise. Use the calculator to compare the entered scenarios, not to predict an offer.

This calculator is educational estimate arithmetic, not financial advice; the lender’s disclosure gives the exact figures.

Related

• Loan Repayment Schedule Calculator in Excel
• Loan Repayment Schedule Calculator and Report Viewer
• Loan Repayment Amortization Schedule Calculator

in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2