Reverse Mortgage Calculator
Estimate reverse mortgage proceeds and repayment considerations. Enter your home value, existing mortgage, age, interest rate and estimated costs to see an indicative borrowing amount and how the balance may grow over time.
Estimated current market value of the home.
Outstanding mortgage or secured debt that may need to be repaid from proceeds.
Age used for this simplified indicative estimate. Actual eligibility rules vary by product and location.
Annual rate used to illustrate how the reverse mortgage balance may accumulate.
Simplified percentage of home value used to estimate gross proceeds. Actual factors depend on the reverse mortgage product.
Estimated fees and closing costs to subtract from gross proceeds.
Period used to illustrate potential balance growth.
Important
This calculator is an educational estimate, not a quote or eligibility determination. Reverse mortgage rules, age requirements, borrowing limits, interest treatment, insurance and repayment obligations vary by country, lender and product.
Repayment Considerations
Reverse Mortgage Estimate Formula
Net Available Proceeds = Gross Proceeds − Existing Mortgage Balance − Upfront Costs
Illustrative Future Balance = Initial Reverse Mortgage Balance × (1 + r)ⁿ
r = Annual Interest Rate
n = Projection Period in years
The simplified model estimates an initial amount using the percentage you enter and then illustrates compound balance growth. Actual reverse mortgage calculations may use age, interest rates, property value limits, insurance premiums, fees and other product-specific rules.
How to Use the Reverse Mortgage Calculator
Enter the Home Value
Enter the estimated current value of the property.
Enter Existing Mortgage Debt
Include any outstanding mortgage balance that may need to be settled.
Set the Estimate Assumptions
Enter age, estimated rate, initial advance percentage, fees and projection period.
Review Proceeds and Balance Growth
Review estimated proceeds, remaining equity and the illustrative future loan balance.
Example Reverse Mortgage Calculation
5,000,000 home value with 1,000,000 existing mortgage
- Borrower Age = 65
- Estimated Interest Rate = 7.5%
- Initial Advance Percentage = 35%
- Estimated Upfront Costs = 50,000
- Projection Period = 10 years
The calculator estimates gross proceeds, net proceeds after existing debt and costs, and an illustrative future balance.
Use the live calculator above for the exact result based on your inputs.
Reverse Mortgage Considerations
Existing Mortgage
Existing secured debt can reduce the proceeds available to you because it may need to be repaid.
Interest Accumulation
Interest and other charges can increase the balance over time when regular principal repayments are not required.
Home Value
The property value is an important factor in determining potential proceeds and remaining equity.
Fees and Costs
Origination, closing, insurance and other product costs can affect the amount available and total balance.
Repayment
Repayment may become due when specified events occur under the loan agreement, such as a sale or the borrower's death.
Remaining Equity
As the reverse mortgage balance grows, the homeowner's remaining equity may decrease, depending on property value changes.