For rentals you already own
Rental Property Refinance Calculator
Compare your current mortgage with a new loan. See the cash released, payment change and effect on rental cash flow.
Free calculations. No account needed.
Your options over 10 years
| Outcome | Keep loan | Refinance | Sell now |
|---|---|---|---|
| Cash released now | $0 | $45,500 | $132,000 |
| Year 1 cash flow / month | $285 | -$124 | — |
| Property value at end | $403,175 | $403,175 | — |
| Loan balance at end | $97,686 | $169,552 | — |
| Unspent reserves at end | $0 | $0 | — |
| Projected value after sale at end | $349,821 | $294,769 | $236,392 |
Cash released through refinancing is borrowed money. The comparison includes the larger debt and payments. Annual cash flows and released cash are invested at your 6% assumed return; deficits reduce the result on the same basis.
Year-by-year projection
| Year | Keep: cash / month | Refinance: cash / month | Keep: value after sale | Refinance: value after sale | Sell & reinvest |
|---|---|---|---|---|---|
| 1 | $285 | -$124 | $148,219 | $139,436 | $139,920 |
| 2 | $319 | -$90 | $165,484 | $152,260 | $148,315 |
| 3 | $354 | -$55 | $183,860 | $166,031 | $157,214 |
| 4 | $390 | -$18 | $203,413 | $180,813 | $166,647 |
| 5 | $428 | $19 | $224,216 | $196,672 | $176,646 |
| 6 | $466 | $57 | $246,346 | $213,678 | $187,245 |
| 7 | $506 | $97 | $269,883 | $231,909 | $198,479 |
| 8 | $547 | $138 | $294,913 | $251,443 | $210,388 |
| 9 | $589 | $180 | $321,527 | $272,366 | $223,011 |
| 10 | $632 | $223 | $349,821 | $294,769 | $236,392 |
Keep your property decisions together.
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How the comparison works
Cash released is the new loan minus today’s loan balance and refinancing costs. Each loan is amortized separately using its rate and remaining or new term. The full-horizon comparison includes the new debt, fees and cash flows, so borrowed cash is not counted as profit.
What is included?
Rent after vacancy, operating costs, replacement reserves, mortgage principal and interest, your growth assumptions, sale costs and debt payoff. Annual cash flows are invested at year end. Cash released today is invested immediately. The model assumes fixed-rate fully amortizing loans and no new borrowing beyond the refinancing option.
What should I verify?
Use actual loan balances and quotes. Taxes, insurance, repairs and rent changes may differ from these assumptions. The tool does not model adjustable-rate or interest-only loans, lender eligibility, balloon payments, prepayment penalties or returns on a specific investment. Before-tax results exclude income taxes; the optional Plus comparison subtracts only your entered tax estimates.
Questions
What if I roll fees into the new loan?
Include the financed fees in the total proposed loan, and enter them again as refinancing costs. Subtracting the fees from the larger loan gives the actual cash you receive; they are not charged twice.
Does a lower payment mean refinancing is better?
A longer loan can reduce the payment while extending interest costs and leaving more debt at the end. Compare the payment, costs and ending balance together.
Is cash-out loan interest always deductible?
No. The use of the proceeds matters. The free tool is before income tax; obtain your own tax estimate for a refinancing path.
Can I use this for a property I might buy?
Use the rental property analyzer for down payment, closing costs, purchase cash-on-cash returns and acquisition tax scenarios. These tools start with a property you already own.