Refi Equity Harvest Calculator

Cash-out refis harvest equity. This calculator sizes net value.

Property value

Current debt

New debt

New rate

Cash deployment return %

Net value

$175,000

Cash harvested

$3,500,000

Additional debt service

$245,000

How the math works

Cash harvested = new − current debt. Additional debt service = cash × new rate. Net = deployment return − additional debt service.

Equity harvest delivers value when deployment return clearly exceeds refi rate. A 12% deployment return against 7% refi rate creates 500 bps spread — on $3.5M harvested, that's $175k/year of incremental value. Lower spreads rarely justify the friction and covenant risk.

How to Use

Enter property value.
Enter current debt.
Enter new debt.
Enter new rate %.
Enter cash deployment return %.
Read net value.

Frequently Asked Questions

When to cash out?

Property value rose significantly. Better investment available for freed cash. Tax-free extraction (basis consumed first). Estate planning. Each creates rationale for refinance-with-cash-out over straight refi.

Cost?

Higher debt service immediately. Stress DSCR and LTV covenants. Potential PMI at higher LTV. Increased prepayment friction. Each friction against pure economic benefit.

Deployment math?

If cash deployment return > refi rate, arbitrage spread creates value. Target 200-400 bps spread above refi rate for meaningful outperformance. Spread below 100 bps: not worth friction costs typically.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.