Commercial cash-out refinance calculator
A cash-out refinance returns equity by replacing your existing loan with a larger one. What you actually receive is not your equity — it is the largest loan the property supports, minus your payoff, minus any prepayment penalty, minus closing costs and recording taxes. Enter your numbers below to see that full waterfall for a New York or Florida commercial property, including CEMA savings on New York refinances.
How we get there
What's capping your loan
Lenders size to the smallest of three limits. Yours is Loan-to-Value (LTV). Your appraised value is the limit. A stronger appraisal is the main lever — extending amortization won't help.
CEMA saves you $57,400
Recording tax on the full loan would be $99,938. By assigning the existing mortgage, you pay $42,538 — tax on the new money only.
Where you land after closing
The cash-out waterfall
Borrowers usually overestimate cash out because they start from equity. Lenders start from a loan ceiling, and every cost of the transaction is paid out of the new loan before anything reaches you. The order matters:
| Step | What it is | Typical size |
|---|---|---|
| Maximum new loan | The lowest of the LTV, DSCR, and debt-yield ceilings | 65–75% of value |
| Existing payoff | Principal balance retired at closing | Varies |
| Prepayment penalty | Step-down, yield maintenance, or defeasance cost | 0–5% of balance |
| Recording taxes | NY mortgage recording tax, or FL doc stamps + intangible tax | 0.55–2.05% |
| Lender & title fees | Origination, title insurance, legal, third-party reports | 1–2% of loan |
New York's mortgage recording tax is 2.05% of the mortgage amount for commercial loans over $500,000 (NY Tax Law §253), and Florida levies documentary stamp tax of $0.35 per $100 of the mortgage (Fla. Stat. §201.08) plus a nonrecurring intangible tax of 0.2% (Fla. Stat. §199.133). Because New York's tax lands on the mortgage rather than the money you receive, it is the line most worth attacking — see the full breakdown in the NY & FL closing cost calculator.
What caps a cash-out refinance
The calculator sizes your new loan against three ceilings and reports which one binds, because the binding constraint decides what you can do about it. LTV is capped by the appraisal, so only a stronger valuation moves it. DSCR responds to structure — a longer amortization or an interest-only period lowers the payment and lifts the ceiling. Debt yield is deliberately rate-independent, so no amount of restructuring helps; only higher NOI does. If you want to see those ceilings on their own, without the refinance waterfall on top, use the loan sizer.
Two things this calculator does not model. Lenders commonly require a seasoning period — often six to twelve months of ownership — before they will consider a cash-out, and many treat a cash-out refinance as a higher-risk request than a rate-and-term refinance, pricing it with a rate premium and a tighter LTV. Treat the output as a sizing estimate, not a quote.
Frequently asked questions
How much cash can I take out of a commercial property?
Your cash out is the largest new loan the property supports minus everything that must be paid from it — the existing loan payoff, any prepayment penalty, and closing costs including recording taxes. The new loan itself is capped by whichever lender constraint binds first: loan-to-value, debt service coverage, or debt yield. Most stabilized commercial refinances land at 65–75% LTV, so a property worth $6.5M with a $2.8M payoff typically frees up meaningfully less than the raw equity figure suggests.
What is the difference between a cash-out and a limited cash-out refinance?
A limited cash-out (sometimes called rate-and-term) refinance replaces the existing debt and covers closing costs, but returns little or no money to the borrower — lenders often cap incidental cash at a small amount. A true cash-out refinance deliberately sizes the new loan above the payoff to return equity. Lenders price cash-out higher because pulling equity out increases their exposure, and they usually apply tighter LTV and debt-yield limits to it.
Do I have to pay tax on a commercial cash-out refinance?
Loan proceeds are borrowed money, not income, so a cash-out refinance is generally not a taxable event at the federal level — this is why refinancing is a common way to access appreciation without triggering a sale. That is general information, not tax advice; how the interest is deductible and how the proceeds are used carry their own treatment, so confirm with your CPA. Separately, the transaction itself does incur state recording taxes, which this calculator includes.
How does a CEMA reduce the cost of a New York refinance?
New York charges mortgage recording tax on the mortgage amount — 2.05% for commercial loans over $500,000 under NY Tax Law §253. Under a Consolidation, Extension, and Modification Agreement the existing mortgage is assigned to the new lender rather than satisfied, so the tax applies only to the new money above the assigned balance. On a refinance with a large payoff this is often the single biggest line item you can remove, which is why the calculator shows it separately.
What is a prepayment penalty and how much does it cost me?
Many commercial loans restrict early payoff through a step-down penalty (a declining percentage of the balance), yield maintenance (making the lender whole on lost interest), or defeasance (substituting securities for the collateral). Enter the penalty as a percentage of your payoff balance to see it come out of your proceeds. If you are inside a lockout or facing defeasance, the exit cost can outweigh the benefit of refinancing — check your loan documents before assuming a refinance is available.
Why is my cash out lower than my equity?
Equity is value minus debt; cash out is constrained by what a lender will lend, then reduced by transaction costs. A property worth $6.5M with $2.8M of debt has $3.7M of equity, but at a 75% LTV ceiling the new loan tops out at $4.875M — so before costs the accessible amount is roughly $2.1M, not $3.7M. Debt service coverage or debt yield can cap it further if income is thin relative to value.
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