Use this DSCR cash-out calculator to estimate how much equity you can pull from an investment rental on a DSCR refinance. Enter appraised value, existing payoff, cash-out LTV, points, and closing costs — the tool returns new loan amount, net cash-out proceeds, and an estimated 30-year P&I on the new balance.
Cash-out is only one constraint. The new payment must still clear DSCR on the rent roll. After you size proceeds here, confirm coverage in the DSCR loan payment calculator and compare quotes in the DSCR loan comparison calculator. New to refi mechanics? See the CFPB mortgage overview.
DSCR cash-out calculator
Estimate net cash-out proceeds on a DSCR refinance — new loan minus payoff, points, and closing costs. Estimates only — not a loan offer.
New loan amount
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Points ($)
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Net cash-out proceeds
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New P&I (30yr)
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How DSCR cash-out proceeds are calculated
The cash-out math is straightforward; the underwriting gates are not. Proceeds follow this sequence:
- New loan amount = appraised value × cash-out LTV (subject to program max, often 80%).
- Origination points = new loan × points %. One point equals 1% of the loan amount.
- Net proceeds = new loan − existing payoff − points − third-party closing costs.
- DSCR test on the new payment — if coverage fails, LTV must come down even when proceeds look fine on paper.
Full program detail: DSCR loans hub · DSCR loan requirements.
Worked example: $450,000 value, $280,000 payoff
Calculator defaults — $450,000 appraised value, $280,000 payoff, 80% LTV, 1.5 points, $4,800 closing, 7.75% rate:
| Line item | Amount |
|---|---|
| New loan (80% LTV) | $360,000 |
| Origination (1.5 points) | $5,400 |
| Third-party closing | $4,800 |
| Existing payoff | $280,000 |
| Net cash-out proceeds | ≈ $69,800 |
| New 30-year P&I @ 7.75% | ≈ $2,580/mo |
Equity before refi was $170,000 ($450,000 − $280,000). Cash-out pulled roughly $69,800 after costs — not the full $80,000 gap between new loan and payoff, because points and closing consume part of the spread.
When proceeds go negative — LTV vs payoff math
If payoff is high relative to value, cash-out fails even inside LTV policy. Example: $450,000 value, $350,000 payoff, 75% LTV, 1.5 points, $4,800 closing:
- New loan: $337,500
- Total costs + payoff: $350,000 + $5,063 + $4,800 = $359,863
- Proceeds: negative ≈ $22,363
The loan cannot cover payoff plus costs at that LTV. Options: rate-and-term refi (payoff + costs sizing), lower payoff via principal paydown, or wait for higher appraised value. The calculator flags negative proceeds in the equity line.
Cash-out LTV vs purchase and rate-and-term caps
| Transaction type | Typical LTV band (Jaken) | Cash to borrower |
|---|---|---|
| Purchase | Up to 85% | N/A — down payment required |
| Cash-out refi | Up to 80% | Proceeds per formula above |
| Rate-and-term refi | Up to 85% | Minimal — replaces lien |
in select markets for qualified borrowers. Summary: Up to 85% LTV purchase, 80% LTV cash-out, and 85% LTV rate-and-term in select markets for qualified borrowers.
BRRRR exit: no-seasoning cash-out after rehab
BRRRR investors often refi from hard money or bridge debt soon after rehab when appraised value jumps. If post-rehab value is $450,000 and hard-money payoff is $280,000, the same $69,800 net proceeds example above is the capital recycled into the next deal — provided rent clears DSCR on the $360,000 permanent loan.
Read DSCR cash-out refinance with no seasoning, the BRRRR calculator, and DSCR down payment and reserves for liquidity after you pull cash.
DSCR constraint after cash-out — payment must still clear
Larger loan → higher payment → lower DSCR. After cash-out, run the new balance through the payment calculator. If DSCR falls below 1.0, reduce LTV until coverage clears or use the minimum rent calculator to see what rent the new loan requires.
Example continuation: $360,000 loan at 7.75% → P&I ≈ $2,580. If NOI is $2,400, DSCR is ≈ 0.93 — likely too thin. Drop to 70% LTV ($315,000 loan) → P&I ≈ $2,258 → DSCR ≈ 1.06 with the same NOI.
Points vs rate on cash-out — total cost of capital
Two quotes on the same $360,000 cash-out:
| Quote | Rate | Points | Points ($) | Net proceeds (same payoff/costs) |
|---|---|---|---|---|
| A — lower rate | 7.25% | 2.0 | $7,200 | ≈ $68,000 |
| B — par rate | 7.75% | 0 | $0 | ≈ $75,200 |
Quote A saves monthly interest but leaves ≈ $7,200 less cash at closing. If you are recycling capital into the next acquisition, par pricing may fund more deals upfront. Compare holistically in the comparison calculator. Rates: 5.75%–10.5%.
Reserves after you pull cash
Lenders require liquid reserves after closing — months of PITIA per financed property — even when you net substantial proceeds. Do not deploy every dollar into the next purchase. Estimate with the DSCR reserves calculator.
Prepayment penalty and hold plan
Most DSCR cash-out loans include a prepay schedule. If you plan to sell or refi again within five years, model exit cost with the prepayment penalty calculator. Read DSCR loan prepayment penalties.
Portfolio and second-lien strategies
Some investors keep a low-rate first mortgage and add a second-lien DSCR instead of full cash-out refi. That changes proceeds math entirely. See the second-position DSCR calculator and compare against full cash-out here.
Seasoning, appraised value, and how they move proceeds
Cash-out LTV applies to current appraised value, not your original purchase price. On a BRRRR exit, value after rehab may be $450,000 while you bought at $310,000 six months ago — proceeds math uses $450,000. Seasoning rules determine how soon after acquisition you can refi at that value. No-seasoning programs exist for qualified sponsors with documented rehab — see DSCR cash-out refinance with no seasoning.
If appraisal comes in below expectations, proceeds shrink linearly. Same payoff and costs on a $420,000 value instead of $450,000 at 80% LTV:
- New loan: $336,000 (vs $360,000)
- Points at 1.5%: $5,040 (vs $5,400)
- Net proceeds: ≈ $46,160 (vs ≈ $69,800) — roughly $23,640 less cash
Rate-and-term refi sizing — when cash-out is not the goal
Rate-and-term DSCR refi replaces the existing lien without pulling meaningful equity. Loan amount is typically payoff plus closing costs, capped at 85% LTV. To model rate-and-term in this calculator, set LTV so new loan ≈ payoff + points + closing, and read proceeds near zero.
Example: $450,000 value, $300,000 payoff, $4,800 closing, 1 point → target loan ≈ $307,800. That is ≈ 68.4% LTV — well inside policy. Proceeds ≈ $0; benefit is lower payment, not cash in hand.
Tax and entity considerations — planning note
Cash-out proceeds are loan proceeds, not taxable income — but how you deploy them matters for your books and future underwriting. Lenders may ask for a letter of explanation on large cash-out use. Recycling into the next acquisition is common; leaving proceeds undocumentable can delay approval.
This is not tax advice — consult your CPA. For loan structure, read DSCR loans hub and DSCR loan requirements.
LTV ladder — see proceeds at each leverage band
Same $450,000 value, $280,000 payoff, 1.5 points, $4,800 closing, 7.75% rate:
| Cash-out LTV | New loan | Net proceeds | 30-yr P&I |
|---|---|---|---|
| 65% | $292,500 | ≈ $2,308 | ≈ $2,097 |
| 70% | $315,000 | ≈ $24,583 | ≈ $2,258 |
| 75% | $337,500 | ≈ $46,858 | ≈ $2,419 |
| 80% (80%) | $360,000 | ≈ $69,800 | ≈ $2,580 |
Each 5% LTV step adds roughly $22,000+ in proceeds on this example — and roughly $160/mo in P&I. DSCR must clear at each rung.
Hard money payoff and cash-out timing
Investors exiting hard money or bridge debt use cash-out DSCR to repay the short-term lien and recycle equity. Payoff includes unpaid interest and any exit fees — enter the full payoff quote from your hard money lender, not just original principal. If payoff is $280,000 including $8,000 in accrued interest, use $280,000 in the payoff field.
Pair with the BRRRR calculator for all-in project cost vs post-refi economics. Rates on permanent DSCR paper: 5.75%–10.5%.
Closing timeline and when proceeds arrive
Net proceeds are wired after closing — typically same day or next business day on owner-occupied-style refi timing for investment entities. Hold reserves separately; do not count proceeds as reserves until your underwriter confirms treatment. Plan 6+ months PITIA in the reserves calculator even after a large cash-out.
Document checklist before you order DSCR cash-out
Proceeds math is useless if the file cannot close. Gather before you apply:
- Current mortgage payoff statement with good-through date
- 12-month lease or market rent support for DSCR on the new payment
- Entity documents — operating agreement, EIN, certificate of good standing
- Bank statements for reserves (see reserves calculator)
- Scope of work and before/after photos if no-seasoning value bump applies
- Preliminary title for liens that affect net proceeds
DSCR on the new loan is the silent constraint behind every cash-out quote. Run the new balance through the payment calculator and confirm rent clears 1.0+ before you pay for appraisal on an aggressive LTV.
Cash-out vs HELOC vs second-lien DSCR
Full cash-out refi replaces the first lien — one payment, one prepay schedule, proceeds per formula above. A HELOC or second-lien DSCR keeps the first mortgage in place and adds a subordinate lien. Proceeds math differs; combined LTV and combined DSCR tests apply. Compare structures in the second-position DSCR calculator when your first rate is too good to touch.
in select markets for qualified borrowers. When proceeds and DSCR both clear, start at pre-qualify.
Sensitivity table — proceeds vs LTV and payoff
Two variables move proceeds most: appraised value and existing payoff. On a $450,000 value with 80% LTV, 1.5 points, and $4,800 closing:
| Payoff | New loan $360K | Net proceeds |
|---|---|---|
| $240,000 | $360,000 | ≈ $109,800 |
| $260,000 | $360,000 | ≈ $89,800 |
| $280,000 | $360,000 | ≈ $69,800 |
| $300,000 | $360,000 | ≈ $49,800 |
| $320,000 | $360,000 | ≈ $29,800 |
Every $20,000 of additional payoff reduces proceeds dollar for dollar until LTV is the binding constraint. Investors with recent cash-in refinances or high-balance bridge payoffs should expect thinner proceeds even at 80% LTV.
Post-close deployment — proceeds vs reserves revisited
After cash-out closes, many investors wire proceeds to an operating account and deploy into the next purchase within 30 days. Remember: reserves must remain documented on the closing snapshot. If you spend proceeds that the underwriter counted toward reserves, the next file in pipeline fails liquidity — even when the first refi closed cleanly.
Conservative approach: segregate reserve cash in a separate account, model new-door reserves before you commit proceeds to rehab on another project, and re-run this calculator on every value change before you order appraisal. Up to 85% LTV purchase, 80% LTV cash-out, and 85% LTV rate-and-term in select markets for qualified borrowers. Rates: 5.75%–10.5%.
Insurance proceeds and casualty events
If a casualty event triggers an insurance payout while a DSCR loan is in place, loan payoff may still include prepay if you rebuild and sell — or if the insurer pays off the lien directly. Servicer payoff quotes include prepay when applicable. Do not assume insurance check amount equals net equity; run payoff through this calculator when a forced sale follows a claim.
For routine cash-out planning, pair this tool with the payment calculator, minimum rent calculator, and reserves calculator on every refi scenario. Submit file-specific quotes at pre-qualify when proceeds and DSCR both clear on paper.
Appraisal gap on cash-out: If you need $70,000 proceeds for the next deal and appraisal misses by $30,000, LTV math delivers roughly $24,000 less cash at 80% LTV — before DSCR is retested. Build a $25,000+ proceeds cushion on aggressive refis or keep dry powder in reserve accounts that are not pledged to the next purchase.
Order payoff and title early on every refi — surprises on subordinate liens or HOA balances reduce net proceeds after this calculator's math is done.
Related DSCR tools
- DSCR calculator
- DSCR loan payment calculator
- Max DSCR loan amount calculator
- DSCR closing cost calculator
- DSCR loan glossary
State and metro DSCR programs
- DSCR loans Chicago · Chicago multi-family
- DSCR loans Indiana · Indianapolis
- DSCR loans North Carolina · South Carolina
- DSCR loans Florida · Georgia
- DSCR loans Texas · Arizona
- DSCR loans Washington DC · Maryland · Virginia
- All state investor hubs
Pre-qualify for DSCR financing · What kind of loan do you need? · (833) 264-7776
Calculator outputs are educational estimates only. Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.