Reverse Mortgage Calculator

Reverse Mortgage Calculator: Estimate How Much You Can Borrow

A reverse mortgage calculator estimates how much cash you could receive from your home equity. You enter your age, home value and current mortgage balance. It returns your estimated net proceeds, monthly payment options and the balance you would owe over time.

This guide is for homeowners age 62 and older, their spouses and their adult children. It also helps anyone comparing options like a home equity loan or a second mortgage. Every number here is an estimate. Your lender’s quote will differ.

The reason it matters is simple. A reverse mortgage has no monthly loan payment, but the balance grows every month. The calculator shows both sides before you talk to a lender.

What Is a Reverse Mortgage?

A reverse mortgage is a loan that turns part of your home equity into cash. You keep the title. You do not make monthly principal and interest payments. The loan is repaid later, usually when the last borrower leaves the home or dies.

Most reverse mortgages in the U.S. are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA) insures them, and the U.S. Department of Housing and Urban Development (HUD) sets the rules. The Consumer Financial Protection Bureau (CFPB) publishes consumer guidance on them.

A regular mortgage works the opposite way. You pay each month, and your balance falls. With a reverse mortgage, the balance rises as interest and mortgage insurance premium (MIP) are added. That is called reverse amortization. If you want to see the normal version first, try our amortization calculator.

Key terms used in this guide:

• HECM: the federally insured reverse mortgage.
• Maximum Claim Amount (MCA): the lesser of your home value or the FHA lending limit.
• Principal Limit Factor (PLF): the percentage of the MCA you can borrow. It depends on age and rate.
• Principal limit: MCA × PLF. This is your gross borrowing power.
• MIP: mortgage insurance premium, paid to FHA.
• LESA: Life Expectancy Set-Aside, money held back to pay property taxes and insurance.
• Non-recourse: you or your heirs never owe more than the home is worth (with the 95% rule below).

What Our Data Shows People Want to Know

We analyzed 421 keywords from Google Keyword Planner and five Semrush exports of competing calculators. We mapped 341 of them to 12 topics, for about 118,100 U.S. searches per month. The rest were brand or lender searches that a calculator cannot answer.

The findings are useful for anyone writing or using a calculator:

The head term “reverse mortgage calculator” gets about 14,800 searches a month. “Calculate reverse mortgage” gets 3,600, and “hecm calculator” gets 2,400. About 1,600 people a month search for a calculator “without personal information.”

Our takeaway: people do not only want a number. They want privacy, plain language and honest costs. This page is built around that.

How to Use the Reverse Mortgage Calculator

Follow these steps for your first estimate.

1. Enter the age of the youngest borrower.
2. Add your home value. Use a recent appraisal or a realistic sale price.
3. Enter your existing mortgage balance and any other liens.
4. Pick your loan program, expected rate and payout style.
5. Read the estimated net proceeds and the plain-English verdict.
6. Change one input at a time to see what moves the result.

Want a quicker version? Use the no-personal-information estimate described below. It needs only ranges.

Calculator Inputs Explained

The “style” presets are illustrative methods. They do not mean any group endorses this tool.

Calculator Outputs Explained

• Maximum Claim Amount (MCA): the home value the loan can be based on.
• Principal Limit Factor (PLF): the percentage applied to your MCA.
• Gross principal limit: the most you could borrow before costs.
• Estimated upfront costs: MIP, origination and third-party fees.
• Existing mortgage payoff: the amount taken first from your proceeds.
• Estimated net proceeds: the “hero” number you can actually use.
• First-year draw limit: the most you can take in year one.
• Estimated monthly payment: the lifetime option, if selected.
• Remaining equity %: how much of the home you still own after the loan.
• Plain-English verdict: a sentence like “You may qualify for about $X, or Y% of your home value.”

The Formulas Behind the Estimate

You do not need to do the math. But seeing it builds trust in the result.

MCA = MIN(Home Value, FHA HECM Limit)         [2026 limit: $1,249,125]
Principal Limit = MCA × PLF(Age, Expected Rate)
Net Proceeds = Principal Limit − Payoff − Initial MIP − Origination
               − Third-Party Costs − Servicing Set-Aside − LESA
First-Year Draw Cap = MAX(60% × Principal Limit,
                      Mandatory Obligations + 10% × Principal Limit)
Remaining Equity % = (Home Value − Estimated Loan Balance) ÷ Home Value

The 2026 HECM limit of $1,249,125 comes from HUD Mortgagee Letter 2025-22. HUD updates it every year, so confirm it each January.

Where the PLF Comes From

The PLF comes from HUD’s official HECM tables. It is indexed by the youngest borrower’s age and the expected rate. Our calculator loads those tables rather than using a rule of thumb.

In the examples below, we assume a PLF of 40% at age 70. That is an illustration only. Your real factor will differ with your age and rate.

Worked Example: A 70-Year-Old With a $450,000 Home

Meet a sample borrower. She is 70, lives alone in a single-family home worth $450,000, and owes $100,000 on her mortgage. She picks a HECM with a 6.50% expected rate.

Step 1: MCA. Her home value is below the FHA limit, so the MCA is $450,000.

Step 2: Principal limit. Using our assumed 40% PLF, $450,000 × 0.40 = $180,000.

Step 3: Upfront costs.

Step 4: Net proceeds. $180,000 − $100,000 payoff − $18,650 costs = $61,350.

Step 5: First-year limit. Sixty percent of $180,000 is $108,000. Her mandatory obligation ($100,000 payoff) plus 10% of the limit is $118,000. The higher number applies, so her draw cap is $118,000. She needs only $100,000 at closing to clear the mortgage, so she is inside the cap.

Result: her verdict reads “You may qualify for about $61,000, or about 14% of your home value.” Her mortgage payment disappears. But her loan balance starts at about $118,650.

That $61,350 is far less than the $180,000 headline number. Payoff and costs take a large share. This is the single most common surprise for first-time users.

How Payout Options Change Your Money

Once you know your net principal limit, you choose how to receive it. Card 6 of our calculator suite compares every plan side by side.

The Seven Payment Plans

Sample Monthly Payments

Using our example’s $61,350 net principal limit and a 6.50% rate, the simplified formulas give:

• Tenure (age 70, 30 years): about $388 per month.
• Term (20 years): about $457 per month.
• Term (10 years): about $697 per month.

The tenure formula is Payment = Net PL × r ÷ (1 − (1 + r)^−n), where r is the rate divided by 12 and n is (100 − age) × 12 months. Real lender payments also reflect servicing set-asides, so treat these as estimates.

Line of Credit Growth

An unused HECM line of credit grows at the note rate plus 0.50%. Suppose $60,000 sits untouched at a 6.50% note rate. Using the formula LOC(t) = LOC₀ × (1 + (note rate + 0.50%)/12)^(12t), it grows to about $120,600 in 10 years and $242,300 in 20 years.

This growth is not interest earned. It is extra borrowing power. You only benefit if you eventually draw the money.

Quick Estimate With No Personal Information

Many people want a number before they share anything. Our Quick Estimate uses only anonymous ranges, so it works as a free, anonymous reverse mortgage calculator.

What it asks for:

• Age band (62 to 90+)
• Home value range (in $100K steps)
• Mortgage balance range
• Optional state
• Your main goal, such as monthly income, home repairs or long-term care
• A rate scenario: lower, typical or higher

What it does not ask for: your name, email, phone number or address. Privacy mode is on by default, with no login, no cookies and no saved results.

Instead of a false-precise figure, it shows a low-to-high range. The math applies the PLF at a rate 0.75% higher for the low end and 0.75% lower for the high end. Results round to the nearest $1,000, and a confidence band tells you how wide the range is.

Pro tip: use the quick estimate first. Then press “Refine this estimate” to carry your inputs into the full calculator.

HECM Calculator: The FHA and HUD Version

If you searched for a “HECM calculator,” “FHA reverse mortgage calculator” or “HUD reverse mortgage calculator,” this is your tool. It shows the variables a HUD-approved counselor would walk you through.

Extra inputs you can control:

• FHA limit year: 2022 through 2026.
• Interest type: fixed, adjustable (monthly) or adjustable (annual).
• Index: 10-year Constant Maturity Treasury (CMT) or SOFR swap (default 4.25%).
• Lender margin: 0.50% to 3.50% (default 2.00%).
• Initial MIP: 2.00% of MCA.
• Annual MIP: 0.50% of the loan balance.
• Servicing fee: $0, $20, $30 or $35 per month.
• Counseling completed: yes or no.

For adjustable loans, the expected rate is the index plus the margin. For fixed loans, it is the note rate. The tool also shows a mini age table for ages 62, 65, 70, 75 and 80, so you can see how age changes your limit.

If you are also weighing a regular FHA purchase or refinance, our FHA loan calculator covers forward mortgages. Veterans may want the VA home loan calculator.

How Much of Your Home Value Can You Borrow?

People often ask about “reverse mortgage LTV by age” or the “principal limit.” Loan-to-value (LTV) here means your principal limit divided by your home value. It is the same idea as the PLF, capped by the MCA.

Three rules shape it:

• Older is higher. Older borrowers are expected to keep the loan for fewer years, so lenders can lend a larger share.
• Higher rates mean less. When the expected rate rises, the PLF falls.
• The cap applies. A $2 million home is treated as $1,249,125 in 2026, so the extra value does not count for a HECM.

Cost of Waiting

Waiting a year raises your age and may raise your limit. But rates can move too. Our Card 4 chart separates the age effect from the rate effect, and it tests rates in 0.5% steps.

We do not publish a single “wait and gain” number because it depends on rate moves nobody can predict. Use the chart with your own inputs.

The Younger Spouse Effect

If a younger spouse is on the loan or is a non-borrowing spouse, the calculation uses the younger person’s age. That lowers your PLF. This is one of the most overlooked parts of the process, so enter your spouse’s age if it applies.

Equity and Eligibility: Do You Qualify?

The basic HECM rules are:

• The youngest borrower is at least 62.
• The home is your primary residence. Second homes and rentals do not qualify.
• The property meets FHA standards.
• You complete HUD-approved counseling.
• You pass a financial assessment showing you can pay taxes, insurance and upkeep.
• You have enough equity to pay off existing liens.

There is no single official minimum equity number. In practice, your principal limit must cover your existing mortgage plus costs. For our 70-year-old, that meant equity of at least roughly 22%, and more equity gives a bigger payout. Use our equity calculator inside the eligibility card to test your own case.

How the Checker Works

Equity = Home Value − Total Liens, and Equity % = Equity ÷ Home Value. It then tests whether your principal limit covers your payoff.

It also estimates residual income: Monthly Income − Debts − (Tax + Insurance + HOA)/12 − Living Expenses. If your residual income is low or you have a credit issue, it flags a likely LESA. You can test the debt side with our debt-to-income ratio calculator.

How Long Does It Take?

The tool estimates days to close across counseling, application, appraisal, underwriting and closing. Timelines vary by lender and by your paperwork. Ask your lender for a target date early.

How to Apply

1. Complete HUD-approved counseling.
2. Choose a lender and submit an application.
3. Order an appraisal.
4. Go through underwriting and the financial assessment.
5. Review the closing disclosures.
6. Close and choose your payout.

The card also gives a printable documents checklist. To find help, search for a HUD-approved counselor before you talk to any lender.

Fees and Closing Costs: The True Cost

A reverse mortgage costs more up front than many people expect. Card 8 lists each charge like a receipt.

The origination formula is MIN(6,000, MAX(2,500, 2% × MIN(MCA, 200,000) + 1% × MAX(0, MCA − 200,000))). At $450,000, the raw math gives $6,500, so the $6,000 cap applies.

Our example totals $18,650, or about 4.1% of the MCA. Add annual MIP and servicing, and the lifetime cost over 10 years is much higher. The Total Annual Loan Cost (TALC)-style percentage shows this as a yearly figure. Compare it with our APR calculator.

Common mistake: ignoring financed costs. When you roll fees into the loan, they compound at the loan’s interest rate.

Jumbo loans have no federal MIP, but lenders may charge their own fees. Compare both in the calculator.

Interest Rates and Loan Balance Growth

Because you make no monthly payment, interest and MIP stack onto your balance. This is reverse amortization, sometimes called backwards amortization.

The formula is Balance(t+1) = Balance(t) × (1 + (Note Rate + MIP)/12) + Servicing Fee − Voluntary Payment. Home value is Value₀ × (1 + Appreciation)^t.

Balance Growth Experiment

We ran two versions of our sample loan. Both use a 6.50% note rate, 0.50% MIP and 3% yearly home appreciation. We ignored servicing fees.

Notice two things. The balance roughly doubles every 10 years at 7% total cost. And with a full draw, the balance passes the home’s value between years 20 and 25.

That is the “crossover year.” Because HECMs are non-recourse, you or your heirs never owe more than the home is worth. But the equity you leave behind can shrink to nothing.

How Rates Change the Outcome

We tested the full-draw loan after 20 years at three rates:

A 1-point rate change moves the 20-year balance by about $130,000 to $160,000. For adjustable loans, the calculator also shows a worst case using lifetime caps. Test your scenario with our interest calculator or compound interest calculator to see the same compounding idea.

Fixed vs. adjustable: fixed-rate HECMs usually pay out as a lump sum. Adjustable loans allow a line of credit and other plans, but the rate can change. Choose based on how you want to draw the money.

HECM for Purchase

A HECM for Purchase lets a senior buy a new primary home with a reverse mortgage. You still make a down payment, but it is smaller than with a traditional loan. There is no required monthly mortgage payment.

This is the lowest-competition topic in our research, with keyword difficulty as low as 10%.

Sample calculation. A 70-year-old buys a $400,000 home. Assume a 40% PLF.

• MCA: $400,000
• Principal limit: $160,000
• Upfront costs: $6,000 origination + $8,000 MIP + $3,500 third-party + $150 counseling = $17,650
• Net principal limit: $142,350
• Down payment: $400,000 − $142,350 = $257,650, or about 64% of the price

The formula is Down Payment = Price + Closing Costs − Net Principal Limit. The calculator also finds the maximum home price your cash can support.

Comparison: a $300,000 conventional loan at 7% over 30 years costs about $1,996 per month in principal and interest. A HECM for Purchase avoids that payment. But you must have the cash for the down payment, and the loan balance grows over time.

Compare the forward-loan side with our mortgage calculator and home affordability calculator. Also check our rent or buy calculator if you are still deciding.

Jumbo, Proprietary and Regional Reverse Mortgages

If your home is worth more than the FHA limit, a jumbo (proprietary) reverse mortgage may offer more cash. These loans are private products, not FHA-insured. They have no federal MIP, and availability varies by state.

Our calculator shows HECM and jumbo results side by side. It uses Extra Cash = Jumbo Proceeds − HECM Proceeds.

Example: a $2 million home is capped at $1,249,125 for a HECM. A jumbo loan can consider the full $2 million, which may produce a larger payout. But jumbo lenders set their own age minimums, rates and fees, so compare carefully.

Outside the United States

Searchers also look for regional tools. Here are the equivalents our calculator supports:

• Canada: reverse mortgages such as CHIP and Equitable Bank’s product, generally for homeowners 55 and older.
• United Kingdom: lifetime mortgages, often called equity release.
• Australia: home equity access products, including options from banks such as CBA and the government’s Centrelink-linked scheme.
• India: reverse mortgage schemes for senior citizens.

Rules, age limits and currencies differ. Use the regional lookup for a rough estimate, and confirm details with a local licensed advisor. In the U.S., state-specific tools like a Florida reverse mortgage calculator handle local tax and insurance defaults.

How Do You Pay Back a Reverse Mortgage?

This is one of the most searched questions in our data, with about 1,300 searches per month. The short answer: the loan becomes due when a triggering event happens, not on a monthly schedule.

When the Loan Becomes Due

• The last borrower dies.
• The last borrower sells the home or moves out permanently.
• The borrower is away for more than 12 months, such as in a care facility.
• Property taxes, insurance or upkeep are not kept up.

Repayment Options

• Sell the home. Proceeds pay the loan. You or your heirs keep what is left.
• Heirs keep the home. They repay the balance, or pay 95% of the appraised value if that is lower.
• Refinance. A new loan pays off the reverse mortgage.
• Pay with cash. Use savings or other assets.
• Make voluntary partial payments. You can pay any time, with no penalty.

The 95% Rule

Heirs Owe = MIN(Payoff, 95% × Appraised Value). Suppose the home is appraised at $600,000 in year 10 and the balance is $361,739. Heirs owe $361,739 because it is less than $570,000. If the balance were $700,000, they would owe $570,000. The insurer covers the gap.

Can You Refinance a Reverse Mortgage?

Yes. HUD applies a benefit test: your new principal limit must rise by at least five times the refinance costs. If costs are $5,000, the increase must be at least $25,000.

Break-even months equal Refinance Costs ÷ Monthly Benefit. If you searched “reverse a reverse mortgage,” the answer is you repay it, sell, or refinance it. There is no undo button. Use our refinance calculator for the forward-loan view and the mortgage payoff calculator to model paying extra.

Your statement: a reverse mortgage statement shows your current balance, interest, MIP and available credit. Enter that balance in the payoff calculator to project future years.

Reverse Mortgage vs. Alternatives

A reverse mortgage is not the right tool for everyone. Compare it with the other ways to use home equity.

Which Option Wins?

Card 12 names a winner for three goals: lowest monthly payment, lowest total cost, and most equity kept. Usually, a reverse mortgage wins on monthly payment. A HELOC or home equity loan often wins on total cost, if you can afford the payments.

It also flags your payment-to-income ratio, which shows qualification risk. Related tools include our home equity loan calculator and HELOC calculator. For a generic view, use the home loan calculator or the loan calculator.

Also weigh the rest of your retirement plan. Try the retirement calculator, annuity calculator and RMD calculator. Adjust for rising prices with the inflation calculator.

Risks, Warnings and Special Situations

A reverse mortgage can help, but it carries real risks. These sections deserve your attention.

Non-Borrowing Spouses

A spouse who is not on the loan can face trouble if the borrower dies or moves out. HUD has rules that may let an eligible non-borrowing spouse stay, but conditions apply. Ask your counselor about this before closing. Enter the spouse’s age in the calculator to see the effect on your loan amount.

Older Adults and Care Needs

If you move into long-term care for more than 12 months, the loan can become due. Plan ahead for this. Talk to family about how the home would be handled.

Taxes, Insurance and Foreclosure

You must keep paying property taxes, homeowners insurance and any HOA fees. Missing these can trigger default and even foreclosure. A LESA can help, but it reduces your proceeds.

Manufactured Homes and Condos

Manufactured homes must meet FHA standards. Condos generally must be in a HUD-approved project. If your property is not eligible, the calculator shows it in the checklist.

Scams and Pressure

Be cautious of anyone who pressures you to sign fast or asks for money before closing. HUD counseling is required and independent. Never skip it.

Limitations of Any Calculator

Calculators cannot see your appraisal, credit, lender pricing or underwriting decisions. Rates change daily. Treat every result as a starting point.

Expert Insights and Best Practices

These points reflect common guidance from HUD and consumer-protection sources, plus what our calculations show.

• Use a range, not a point. A quick estimate with a low-to-high band is more honest than one exact figure.
• Check the net, not the gross. Subtract payoff and costs before you plan around any number.
• Think about your heirs. Run the 95% rule with a flat home-value scenario, not only a rising one.
• Delay draws when possible. An unused line of credit grows, and unspent money does not accrue interest.
• Consider voluntary payments. Even small payments slow the balance growth.
• Do not skip counseling. It is required, and it is your best chance to ask hard questions.

Common mistakes: forgetting the younger spouse, using a home value that is too optimistic, ignoring annual MIP, and assuming the loan is “free” because there is no payment.

Other Names for This Tool

People find this calculator with many phrases. You may know it as a reversemortgagecalculator, a reverse home mortgage tool, a simple reverse mortgage calculator, or a reverse mortgage loan calculation tool. Some search “reverse mortgage how much can i get” or “estimate reverse mortgage amount.”

Others look for brand names such as an AARP reverse mortgage calculator, an AAG reverse mortgage calculator, an AIG reverse mortgage calculator or an Arlo reverse mortgage calculator. We are independent. We do not represent those organizations and imply no endorsement. Our “calculation style” presets are illustrative only.

Related searches like “reverse mortgage payment calculator,” “reverse mortgage line of credit calculator,” “reverse mortgage ltv calculator,” “reverse mortgage principal limit calculation,” “reverse mortgage cost calculator,” “reverse mortgage mip calculation,” “reverse mortgage payoff calculator,” “reverse mortgage balance calculator,” and “backwards amortization calculator” are each covered by a card in this suite.

Frequently Asked Questions

How much can I get from a reverse mortgage?

It depends on your age, home value, rate and existing mortgage. Older borrowers with more equity and lower rates get more. In our example, a 70-year-old with a $450,000 home and a $100,000 mortgage netted about $61,350 after costs. Use the calculator for your own number.

How do you pay back a reverse mortgage?

You do not make monthly payments. The loan is repaid when the last borrower dies, sells or permanently moves out. Heirs can sell the home, keep it by repaying the balance, or pay 95% of the appraised value if that is lower.

How much equity do you need for a reverse mortgage?

HUD does not set one fixed number. You need enough equity for your principal limit to pay off your current mortgage and costs. Many borrowers need at least about 50% equity to see meaningful cash, and more is better. Our eligibility checker shows your exact situation.

How long does it take to get a reverse mortgage?

The process includes counseling, application, appraisal, underwriting and closing. Timing varies by lender and how fast you supply documents. Our checker gives a day-by-day estimate, and your lender can confirm a schedule.

What is the interest rate on a reverse mortgage?

Rates vary by lender and market. Fixed-rate HECMs have one rate for the life of the loan. Adjustable loans use an index plus a margin, so the rate can change. Our calculator defaults to 6.50% and lets you edit it.

Is there a reverse mortgage calculator without personal information?

Yes. Our Quick Estimate asks only for age, home value and mortgage balance ranges. It needs no name, email or phone number and saves nothing.

Can you get a reverse mortgage with a mortgage still on the home?

Yes. The loan first pays off your existing mortgage. What is left is your net proceeds. If your principal limit is lower than your payoff, you generally cannot qualify unless you bring cash.

Is money from a reverse mortgage taxable?

Proceeds are generally treated as loan advances, not income. Rules can affect benefits, so ask a tax professional. This is not tax advice.

What is the difference between a HECM and a jumbo reverse mortgage?

A HECM is FHA-insured and capped at $1,249,125 in 2026. A jumbo is a private loan for higher-value homes with no federal MIP. Terms and availability vary by lender and state.

Can you refinance a reverse mortgage?

Yes, if the new loan passes HUD’s benefit test. The principal limit increase must be at least five times your costs. The refinance calculator checks this for you.

What happens if my loan balance grows larger than my home’s value?

HECMs are non-recourse. You or your heirs never owe more than the home is worth, with the 95% appraised-value rule as a limit. The insurance covers the difference.

Is a reverse mortgage better than a home equity loan or HELOC?

It depends on your goals. A reverse mortgage removes the monthly payment. A home equity loan or HELOC often costs less overall but requires payments and income to qualify. Compare them in Card 12.

Conclusion

A reverse mortgage calculator turns a confusing product into clear numbers. It shows your net proceeds, your payout choices, your fees and how your balance grows over time. It also shows what your heirs may face.

Start with the quick estimate. Then use the full calculator, and test different ages, rates and payouts. Finally, speak with a HUD-approved counselor and a licensed professional before you decide.

Disclaimer: This calculator provides general estimates based on published HUD / FHA HECM rules and standard loan math. Actual amounts depend on lender pricing, appraisal and underwriting. HECM borrowers must complete HUD-approved counseling. This is not financial, tax or legal advice; please speak with a HUD-approved counselor and a licensed professional before making a decision.

Sources to link: HUD, FHA, CFPB, NRMLA. Verify each URL before publishing.