Who qualifies for a reverse mortgage?

To qualify, you must be at least 62 years old, own your home outright or have significant equity, and live in the home as your primary residence.

When do you have to repay a reverse mortgage?

Repayment is required when you move out permanently, sell the home, or pass away. The home is usually sold to pay off the loan, and any equity left goes to you or your heirs.

How much can I borrow with a reverse mortgage?

The amount depends on your age, home value, current interest rates, and the HUD principal limit factor. Older borrowers typically qualify for more.

What information do I need to use the calculator?

You’ll need your home's current value, any payoff amount, the principal limit factor (from HUD tables), your desired draw amount, and the interest rate.

Can I see how interest affects my loan over time?

Yes, the calculator provides charts and a year-by-year breakdown so you can see exactly how your loan balance and interest grow each year.

How do I save or share my results?

You can copy your results directly or export a PDF or Excel file for easy sharing with family members or financial professionals

Reverse Mortgage Calculator

Estimate reverse mortgage proceeds and loan growth.

Inputs

Reverse mortgage (HECM-style, U.S.)

Home Value ($)

Existing Mortgage Balance ($)

Payoff at closing (reduces amount available to you)

Principal Limit (% of home value)

Depends on age and rate (HUD PLF tables); e.g. 40–60%

Initial Draw – Lump Sum ($)

Capped by available principal limit after payoff

Expected Interest Rate (APR %, 0–100)

Projection (years, 1–40)

Results

Principal limit, draw, and projected balance (no monthly payments)

Principal Limit

$192,000

Draw to Borrower

$150,000

Balance at Year 20

$548,467

Total Interest Accrued

$398,467

Available after payoff: $192,000 · Initial loan balance: $150,000

Loan Balance Over Time

Balance grows as interest accrues (no payments)

Interest Accrued by Year

All 20 years

Yearly Breakdown

First 15 years. Download full schedule for all 20 years.

Year	Balance	Interest Accrued
0	$150,000	$0
1	$160,046	$10,046
2	$170,764	$10,719
3	$182,201	$11,436
4	$194,403	$12,202
5	$207,423	$13,020
6	$221,314	$13,891
7	$236,136	$14,822
8	$251,950	$15,814
9	$268,824	$16,874
10	$286,828	$18,004
11	$306,037	$19,209
12	$326,533	$20,496
13	$348,401	$21,869
14	$371,734	$23,333

For educational and estimation purposes only; not financial or legal advice. U.S. context. Reverse mortgages (HECM) are complex; eligibility, principal limits, and costs depend on age, rate, and HUD rules. No monthly payments means the balance grows; loan is due when you sell, move out, or pass away. Does not include MIP, servicing fees, or property charges. Consult a HUD-approved counselor and lender for actual terms.

How It Works

To use the calculator, simply fill in the following fields:

Reverse mortgage (HECM-style, U.S.) [$]: Enter your home’s current appraised value.
Payoff at closing [$]: If you have an existing mortgage or liens, enter the amount to be paid off at closing. This reduces the funds available to you.
Principal Limit Factor [%]: Enter the HUD principal limit factor, which depends on your age and current interest rates. For most, this ranges from about 40% to 60%.
Draw to Borrower [$]: Specify how much you want to receive immediately at closing, up to your available limit after payoff.
Interest Rate [%]: Enter the expected interest rate for your reverse mortgage.
Loan Term [years]: Choose the number of years for projection (commonly 20 years).

Once you click Calculate, the calculator will display:

Principal Limit: The total amount available from the reverse mortgage before paying off any existing liens.
Draw to Borrower: The upfront cash you receive at closing.
Balance at Year 20: The projected loan balance after 20 years, assuming no monthly payments.
Total Interest Accrued: The sum of all interest added to your balance over the term.

You’ll also see:

Loan Balance Over Time Chart: Visually tracks how your balance grows each year as interest accrues.
Interest Accrued by Year Chart: Shows the yearly increase in interest.
Yearly Breakdown Table: Provides a year-by-year summary of your loan balance and interest for the first 15 years.

For additional convenience, you can:

Copy results for sharing or record-keeping
Export PDF for a printable report

Export Excel for further analysis or sharing with a financial advisor

Reverse Mortgage Calculator

A reverse mortgage is a type of home loan for homeowners age 62 or older that allows you to convert part of your home’s equity into cash without selling your house or making monthly payments.

Most reverse mortgages in the United States are Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration (FHA).

This financial tool is especially useful for retirees who want to supplement their income, pay off existing debts, or cover unexpected expenses. Instead of making monthly payments to a lender, the lender pays you either as a lump sum, line of credit, or monthly advances.

The loan balance increases over time as interest accrues, and repayment is typically due when you move out, sell the home, or pass away.

Reverse mortgages can be complex. Factors like your age, the home’s value, interest rates, and any outstanding mortgage balance all influence how much you can borrow. This calculator helps you clearly understand these numbers so you can make an informed decision.

How This Calculator Helps

This calculator gives you a straightforward way to estimate how much you could receive from a reverse mortgage and how your loan balance may grow over time.

By entering your home’s value, any amount you need to pay off at closing, the applicable principal limit factor (a HUD percentage based on your age and interest rate), the amount you wish to draw at closing, and the interest rate, you receive:

Principal Limit: The maximum available amount you can borrow
Draw to Borrower: The amount you plan to receive at closing
Projected Loan Balance Over Time: An estimate of how your loan grows, assuming no monthly payments
Total Interest Accrued: The total interest costs over the loan period
Annual Breakdown: Year-by-year details of your loan balance and accrued interest

These insights help you plan ahead, compare scenarios, and understand both immediate cash availability and long-term impacts.