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Lump Sum & Cash-Out Calculator

Model releasing equity as cash, or putting a lump sum against the loan, and see what each does to the repayment and the term.

Indicative only · not an offer of credit

The property

Your own estimate. The figure that decides the outcome is the lender’s valuation, which can land below it.

What is owing on the property today, across all loans secured against it.

The cash you need

The lump sum you want released at settlement.

The new loan

Assumption only. Replace it with the rate you have actually been quoted. It is not a rate WeL’nd is offering.

Refinancing usually resets the term, which lowers the repayment and lengthens the run.

LVR after the cash-out

61.1%

A loan of $550,000 against a property you have valued at $900,000. Today it sits at 50.0%.

Within 80% LVR

The full $100,000 fits inside 80% of the value. That is the band most lenders are comfortable in, and lenders’ mortgage insurance generally does not apply. It still has to pass a full credit assessment, and the lender will still ask what the money is for.

LVR today
50.0%
LVR after the cash-out
61.1%
Equity available at 80% LVR
$270,000
Equity available at 90% LVR
$360,000
New total loan
$550,000
New repayment
$3,298 / month
Increase on today’s repayment
$600 / month
Total interest over the new term
$637,110

Where the loan sits against the value

LVR today50.0%
LVR after the cash-out61.1%
The 80% mark80%

Equity against the amount you asked for

Available at 80% LVR$270,000
Available at 90% LVR$360,000
Cash-out you asked for$100,000

What the cash actually costs

Releasing $100,000 is not a $100,000 decision. Carried over 30 years at the rate you entered, it adds $115,838 in interest and $600 a month to the repayment. That can still be the right call when it retires a debt that is compounding faster, and it is a poor call when it is funding something that will be gone in a year.

Lenders ask what it is for

Cash-out is never assessed on the numbers alone. You state a purpose and the lender assesses it. Consolidating tax or business debt is a purpose lenders will look at properly rather than wave through, and they will want the balance, the payment history and how the business is trading now. Renovations, a deposit on another property and a working capital injection are each treated differently again. Have the answer ready, and have it documented.

Where the debt involves an ATO balance, a payment arrangement or a company structure, a registered tax agent or your accountant should be in the conversation with us. We arrange finance. We do not give tax or insolvency advice.

Find out early, not at assessment

Bring the balance, the purpose and how the business or the household is trading now. We will tell you what a lender is likely to say before you formally apply, and which of the forty plus lenders on our panel is the one to ask.

Talk to a broker about the cash-out
What this calculator assumes
  • Loan-to-value ratio is the loan divided by the property value. The value that counts is the lender’s valuation, not the figure you entered, and valuations often come in lower.
  • Equity available at 80% and 90% is the value at that ratio less what you owe now. It is a ceiling, not an approval, and no lender is obliged to go near it.
  • The new loan is your current balance plus the cash-out. Application fees, discharge fees, valuation fees, government charges and lenders’ mortgage insurance are not included and will usually be added on top.
  • Repayments assume principal and interest, monthly, at a constant rate for the whole term. Interest-only and split loans behave differently.
  • Resetting the term restarts the clock. A refinance back to thirty years lowers the repayment and raises the total interest, which the totals above reflect.
  • One property and one loan are modelled. Cross-collateralised loans, multiple securities, guarantors and company or trust borrowers all change the assessment.
  • The rate field is a placeholder for you to overwrite. It is not a rate WeL’nd is offering and it is not a quote from any lender.
Other calculators

How to read the result

This tool runs in both directions. Put a lump sum against the loan and it shows the interest saved and the time removed. Take a lump sum out against the equity and it shows the new balance, the new repayment and what the release costs you across the term.

Equity and usable equity are different things

Equity is the property's value minus what you owe. Usable equity is smaller. A lender will lend up to a percentage of its own valuation, then deduct the existing debt, and what remains is what can actually be released. Enter a realistic value rather than a hopeful one, because the lender's valuer will not be reading your estimate.

Cash-out is borrowing, not a windfall

Money released this way is debt, secured against your property, usually repaid over the remaining term of the mortgage. Used to clear a tax debt or replace expensive short-term borrowing, it can be the single most effective move available. Used to fund something that does not earn or last, it turns a short problem into a long one.

The assumptions behind the number

  • The property value you entered is what a lender's valuer would agree to.
  • The rate holds across the projection.
  • The released amount is drawn in full at settlement and repaid over the remaining term.
  • A lump sum repayment is applied to principal immediately and not redrawn.
  • The loan permits the payment or the release without penalty.
  • Fees are excluded unless you entered them.

Valuations are the assumption that moves most. A figure below your expectation reduces the usable equity twice over, because it lowers the ceiling and can push the loan-to-value ratio into a band with different pricing.

What it does not account for

  • Lenders mortgage insurance, if the release takes the loan past the lender's threshold.
  • Valuation, legal, settlement and registration costs.
  • Break costs where the loan or part of it is fixed.
  • Evidence requirements. Lenders ask what the cash is for, and larger releases attract more scrutiny.
  • The tax treatment of the interest on the released amount, which depends on what the money is used for and belongs with a registered tax agent.
  • Any change in property value after settlement.

On purpose evidence: releasing funds to pay out an ATO balance, a business debt or a set of unsecured loans is a normal and acceptable purpose. It has to be declared and documented, and in most cases the lender pays those creditors directly at settlement rather than depositing the funds with you. Describing the purpose accurately from the start avoids the delay of an application being rewritten halfway through.

How a lender's assessment differs

The four gates a cash-out has to pass
GateWhat the lender is testing
ValuationIts own valuer's figure, not the owner's estimate or a listing price
Loan-to-value ratioThe new total debt as a percentage of that valuation
ServicingWhether income supports the larger repayment at a buffered rate
PurposeWhat the funds are for, with evidence, and whether the lender's policy allows it

All four have to pass. Plenty of equity with insufficient servicing does not settle, and strong income with a low valuation does not either. Where a mainstream lender will not fund the purpose, a private or specialist lender sometimes will, at a different price and usually on a shorter horizon. That trade is worth making when the alternative is escalating recovery action, and worth avoiding when it is not.

What to do next

  1. 01Get a realistic view of the property's value from recent comparable sales, not from a listing price.
  2. 02Confirm the current loan balance and whether any part of it is fixed.
  3. 03Write down the purpose and the exact amount, with the payout figures behind it.
  4. 04Check servicing at a buffered rate before you rely on the release.
  5. 05Bring it to a broker, so it goes to a lender whose policy fits the purpose.

If the purpose is tax or business debt, run the ATO debt calculator alongside this one. Seeing both numbers together usually makes the decision straightforward.

FAQ

Questions people actually ask

If yours is not here, ask it. We would rather answer the awkward one early than have you find out later.

1300 015 267
Is this an approval to release equity?
No. It is indicative only, based on the value and balance you entered. It is not an offer of credit or a quote. Any release depends on the lender's own valuation, its loan-to-value limits, servicing and purpose policy.
How much equity can I actually access?
A lender lends up to a percentage of its valuation and then deducts your existing debt. The remainder is the usable equity, and it is almost always less than the difference between what you think the property is worth and what you owe.
Can I take cash out to pay an ATO debt?
It is one of the more common purposes we arrange. Lender appetite varies, the purpose must be declared, and the funds are usually paid directly to the creditor at settlement rather than to you.
Will the lender ask what the money is for?
Yes, and for larger amounts it will want evidence. Purpose is a credit decision in its own right. Being accurate from the start is faster than having the application reworked.
Does a cash-out increase my repayment?
Yes. The released amount is added to the loan balance and repaid over the remaining term, so the repayment rises. The calculator shows the new figure alongside the current one.
Is a lump sum repayment better than holding the cash in an offset?
The interest effect is similar, but the lump sum is committed while the offset stays accessible. For a business with variable cash flow, accessibility usually matters more than the small difference.
Will I have to pay lenders mortgage insurance?
You may, if the release takes the loan past that lender's threshold. It is a real cost and it should be counted in the comparison rather than discovered at approval.
What if my property values lower than expected?
The usable equity falls, and the loan-to-value ratio may move into a band with different pricing or different rules. Sometimes another lender's valuer reaches a different figure, which is one of the practical advantages of a panel.

Credentials

  • Credit Representative 554029
  • ABN 20 672 801 651
  • FBAA member
  • AFCA external dispute resolution

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Where this applies

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Understand the mechanism

A calculator cannot see your whole file.

It works from what you typed. We work from what a lender will actually assess — and we would rather tell you the real answer early.

Or call us

1300 015 267

Monday – Friday, 09:00 to 17:30

Dave Pham, Head Broker at WeL'nd

“Tell me the number. I have almost certainly seen worse.”

Dave Pham · Head Broker

Talk to Dave1300 015 267

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