Finance category
Mortgage, loan, investing, tax, and money calculators.
Refinance Proceeds Waterfall Calculator
Cash-out refi proceeds flow through the waterfall just like sale proceeds — but they're debt, not taxable income. This calculator takes the new loan amount, subtracts old payoff and closing costs, and distributes the net cash through return-of-capital + promote splits to LP and GP.
Net refi proceeds
$2,880,000
LP share
$2,604,000
GP share
$276,000
LP capital returned
$2,500,000
GP promote amount
$26,000
How the math works
Refinance proceeds waterfall: net cash = new loan − old payoff − closing costs. Distributed first as return of capital pro-rata, then any excess flows through the promote waterfall. Tax-free cash-out via refinance is one of the most tax-efficient ways to return capital.
Refi proceeds are debt proceeds — not taxable to LPs. A 1031 exchange or refinance-and-hold beats a taxable sale for investors focused on tax deferral.
How to Use
- Enter new loan amount, old loan balance, and closing costs.
- Enter LP and GP capital still outstanding.
- Enter GP promote percentage.
- Read net proceeds and LP/GP distribution.
Frequently Asked Questions
Taxable?
Generally no — refinance proceeds are debt, not income. LPs receive tax-free distributions. This makes refi-and-hold vastly more tax-efficient than an outright sale for many investors.
How much can I cash out?
Limited by lender LTV/DSCR/debt yield. Typical refi: 65-75% LTV, 1.25x DSCR min. If NOI has grown, the new loan can be 20-40% higher than original — the incremental cash is distributable.
What about supplementary loans?
Agency multifamily allows supplementals — second mortgage from the same lender. Pre-pay penalty on original loan is avoided. Supplemental proceeds flow through the same waterfall.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Refinance Closing Cost Calculator
Build up a refinance Loan Estimate line by line: lender fees, points, prepaids, escrow funding, and cash at close.
Next calculator
Refinance vs Recast Calculator
Decide whether to refinance the mortgage or recast it with a lump-sum principal payment. Compare payment, total interest, and break-even.