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Reverse Mortgage Calculator
See how much equity you could turn into cash. Enter your home value, age and expected rate, pick a payout, then press Calculate to estimate the net amount and watch the loan balance grow over time.
Written by TopicDrill Editorial Team·Updated June 2026
Loan balance vs home value
Home value Loan balance
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How the reverse mortgage calculator works
A reverse mortgage lets homeowners aged 62 and over borrow against their equity without monthly payments. This tool follows the logic of a Home Equity Conversion Mortgage. It first caps your home value at the federal lending limit, then multiplies it by a principal limit factor that grows with the borrower age and falls as the expected rate rises. That gives the gross principal limit.
From the principal limit it subtracts the upfront mortgage insurance premium, your financed closing costs and any existing mortgage that has to be paid off at closing. What is left is the net cash you can actually receive, shown either as a single payout or an estimated monthly tenure amount.
A worked example
Suppose a 70 year old owns a home worth 500,000 dollars with a 40,000 dollar mortgage and expects a 6.5 percent rate. The principal limit factor lands near 39 percent, giving a principal limit around 195,000 dollars. After 10,000 dollars of insurance, 15,000 dollars of closing costs and the 40,000 dollar payoff, roughly 130,000 dollars of net cash remains. Over the next 15 years interest and insurance steadily push the balance higher.
Things to keep in mind
These figures are estimates. Actual principal limit factors come from official HUD tables and your real rate, fees and counseling will move the numbers. Reverse mortgages also carry obligations like staying current on taxes, insurance and upkeep. Read the consumer guide at the CFPB before committing. If you simply want to compare a regular loan, try our mortgage calculator.
Frequently asked questions
How much can I get from a reverse mortgage?
The amount is based on your home value (up to the federal lending limit), the age of the youngest borrower and the expected interest rate. These set a principal limit factor, and the principal limit is your capped home value times that factor. From it you subtract upfront mortgage insurance, financed closing costs and any existing mortgage that must be paid off.
Why does borrower age matter so much?
A reverse mortgage is not repaid until the last borrower leaves the home, so the lender expects the loan to be outstanding for fewer years when borrowers are older. That shorter expected term lets older borrowers access a larger share of their equity, which is why the principal limit factor rises with age.
Do I still owe money over time?
Yes. You make no monthly payments, but interest and ongoing mortgage insurance are added to the balance every month, so the loan grows. The chart shows the loan balance climbing while your home value drifts up more slowly, which is how equity is gradually consumed.
What is the difference between a lump sum and tenure payout?
A lump sum draws the full available amount at closing, so interest accrues on the whole balance right away. A tenure or line of credit payout draws funds gradually, so the balance and interest build more slowly. This calculator lets you switch between them to compare how fast the loan grows.
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