Loan Balance & Home Equity Projection
Hover over the chart to see how your reverse mortgage balance, home value and remaining equity change each year, up to age 100.
Payout Options Compared (15-Year View)
| Payout Option | Cash at Closing | Monthly Payment | Credit Line in 15 Yrs | Loan Balance in 15 Yrs | Home Equity in 15 Yrs |
|---|---|---|---|---|---|
| Line of Credit | $0 | — | $407,217 | $48,432 | $574,755 |
| Lump Sum | $142,936 | — | — | $455,649 | $167,538 |
| Monthly for Life (Tenure) | $0 | $950.96 | — | $349,850 | $273,337 |
| Monthly for 10 Years (Term) | $0 | $1,659.61 | — | $455,649 | $167,538 |
Year-by-Year Reverse Mortgage Schedule
| Year | Age | Home Value | Payments Received | Interest & MIP Accrued | Loan Balance | Credit Line | Home Equity |
|---|---|---|---|---|---|---|---|
| Year 1 | 71 | $412,000 | — | $1,229 | $18,229 | $153,269 | $393,771 |
| Year 2 | 72 | $424,360 | — | $1,318 | $19,547 | $164,349 | $404,813 |
| Year 3 | 73 | $437,091 | — | $1,413 | $20,960 | $176,229 | $416,131 |
| Year 4 | 74 | $450,204 | — | $1,515 | $22,475 | $188,969 | $427,729 |
| Year 5 | 75 | $463,710 | — | $1,625 | $24,100 | $202,630 | $439,610 |
| Year 6 | 76 | $477,621 | — | $1,742 | $25,842 | $217,278 | $451,779 |
| Year 7 | 77 | $491,950 | — | $1,868 | $27,710 | $232,985 | $464,240 |
| Year 8 | 78 | $506,708 | — | $2,003 | $29,713 | $249,827 | $476,995 |
| Year 9 | 79 | $521,909 | — | $2,148 | $31,861 | $267,887 | $490,048 |
| Year 10 | 80 | $537,567 | — | $2,303 | $34,164 | $287,253 | $503,402 |
| Year 11 | 81 | $553,694 | — | $2,470 | $36,634 | $308,018 | $517,060 |
| Year 12 | 82 | $570,304 | — | $2,648 | $39,282 | $330,285 | $531,022 |
| Year 13 | 83 | $587,413 | — | $2,840 | $42,122 | $354,162 | $545,292 |
| Year 14 | 84 | $605,036 | — | $3,045 | $45,167 | $379,764 | $559,869 |
| Year 15 | 85 | $623,187 | — | $3,265 | $48,432 | $407,217 | $574,755 |
| Year 16 | 86 | $641,883 | — | $3,501 | $51,933 | $436,655 | $589,949 |
| Year 17 | 87 | $661,139 | — | $3,754 | $55,688 | $468,221 | $605,452 |
| Year 18 | 88 | $680,973 | — | $4,026 | $59,713 | $502,068 | $621,260 |
| Year 19 | 89 | $701,402 | — | $4,317 | $64,030 | $538,363 | $637,373 |
| Year 20 | 90 | $722,444 | — | $4,629 | $68,659 | $577,281 | $653,786 |
| Year 21 | 91 | $744,118 | — | $4,963 | $73,622 | $619,013 | $670,496 |
| Year 22 | 92 | $766,441 | — | $5,322 | $78,944 | $663,761 | $687,497 |
| Year 23 | 93 | $789,435 | — | $5,707 | $84,651 | $711,745 | $704,784 |
| Year 24 | 94 | $813,118 | — | $6,119 | $90,770 | $763,197 | $722,347 |
| Year 25 | 95 | $837,511 | — | $6,562 | $97,332 | $818,368 | $740,179 |
| Year 26 | 96 | $862,637 | — | $7,036 | $104,368 | $877,528 | $758,268 |
| Year 27 | 97 | $888,516 | — | $7,545 | $111,913 | $940,965 | $776,603 |
| Year 28 | 98 | $915,171 | — | $8,090 | $120,003 | $1,008,987 | $795,168 |
| Year 29 | 99 | $942,626 | — | $8,675 | $128,678 | $1,081,927 | $813,948 |
| Year 30 | 100 | $970,905 | — | $9,302 | $137,980 | $1,160,140 | $832,925 |
Reverse Mortgage Calculator: Estimate How Much Your Home Equity Could Pay You
Our free reverse mortgage calculator turns a handful of simple numbers into a realistic picture of what a Home Equity Conversion Mortgage (HECM) could offer you: your estimated principal limit, the cash you would receive after costs, and how the loan balance grows while you stay in your home. Use this reverse mortgage estimator before you speak with any lender, so you walk into the conversation already knowing what a reasonable offer looks like and which payout option fits your retirement plan.
How This Free Reverse Mortgage Calculator Works
The reverse mortgage calculator starts with the age of your youngest borrower, your home value and the expected interest rate. Age and rate determine the principal limit factor, which is the share of your home value (up to the FHA maximum claim amount of $1,249,125 in 2026) that a lender may let you borrow. Older borrowers and lower rates produce a higher factor. The estimator then subtracts upfront costs and any existing mortgage, and what remains is your net available proceeds.
Because a reverse mortgage requires no monthly payment, interest and the 0.5% annual mortgage insurance premium are added to the balance every month and compound. That is why this free reverse mortgage calculator projects your loan balance, home value and remaining equity year by year, so you can see the long-term trade-off instead of only the cash you receive on day one. Change the projection length to test 10, 20 or 30 years.
Reverse Mortgage Estimator Inputs Explained
- Youngest borrower age: a younger borrower or eligible spouse means the loan is expected to last longer, so the payout is smaller.
- Home value: the appraised value, capped at the FHA maximum claim amount for the calculation.
- Existing mortgage: any current lien is paid off first from the loan proceeds.
- Interest rate: a higher expected rate lowers your principal limit and speeds up balance growth.
- Financing costs: rolling upfront costs into the loan avoids cash at closing but reduces what you receive.
- Home appreciation: used only for the projection, so try 0% for a cautious view.
Reverse Mortgage Calculator Without Personal Information
Many online tools are really lead forms that ask for your name, phone number and address before showing a number. This reverse mortgage calculator without personal information works differently: it needs only age, home value and a few financial assumptions, and it never asks for your contact details, Social Security number or credit score to display results. The page does not send your figures to lenders. An email address is requested only if you choose the optional PDF, Excel or print export.
Reverse Mortgage Payout Options
A HECM can pay you in several ways, and the payout you choose changes how quickly the balance grows. Switch between the options above and check the comparison table to see the same loan under all four structures side by side.
| Option | How You Receive Money | Rate Type | Often Chosen For |
|---|---|---|---|
| Line of credit | Draw funds only when needed; the unused portion grows over time | Adjustable | Flexible cash reserve and emergencies |
| Lump sum | All proceeds at closing | Fixed | Paying off a mortgage or buying a new home |
| Tenure | Equal monthly payments for as long as you live in the home | Adjustable | Steady lifetime income |
| Term | Equal monthly payments for a chosen number of years | Adjustable | Bridging income until Social Security or other benefits start |
What a Reverse Mortgage Costs
Reverse mortgages are more expensive to set up than most home loans, which is why an accurate reverse mortgage estimator matters. The upfront mortgage insurance premium is 2% of the maximum claim amount. The origination fee is the greater of $2,500 or 2% of the first $200,000 of value plus 1% of the amount above that, capped at $6,000. Third-party fees such as appraisal, title and recording come on top. Ongoing costs include interest and an annual mortgage insurance premium of 0.5% of the balance, plus property taxes, homeowners insurance and upkeep, which you must keep paying. Read the CFPB guide to reverse mortgage costs for more detail.
HECM Reverse Mortgage vs. Traditional Mortgage
| Feature | HECM Reverse Mortgage | Traditional Mortgage |
|---|---|---|
| Purpose | Turns home equity into cash for homeowners 62+ | Finances buying a home |
| Monthly payments | None required on the loan | Required every month |
| Loan balance over time | Grows as interest accrues | Shrinks with each payment |
| Amount determined by | Age, home value, interest rate | Income, credit and down payment |
| Repaid when | Last borrower sells, moves out or dies | Monthly over the loan term |
To see how a standard loan behaves, compare it with our mortgage calculator and the amortization calculator, where the balance falls instead of rising.
Pros and Cons of a Reverse Mortgage
| Pros | Cons |
|---|---|
| No required monthly loan payment | High upfront costs and ongoing insurance premiums |
| Proceeds can be used for any purpose | Balance grows and equity shrinks over time |
| Non-recourse: you never owe more than the home is worth | Loan can become due if taxes, insurance or upkeep are not maintained |
| Credit line can grow over time | May affect needs-based benefits such as Medicaid or SSI |
| You keep title and stay in your home | Heirs must repay the loan or sell to keep the home |
HECM Eligibility Requirements
To qualify for a HECM you must be at least 62, live in the home as your primary residence, own it outright or have substantial equity, and have no delinquent federal debt. You must also show you can keep paying property taxes, insurance and maintenance, and you must complete a counseling session with a HUD-approved counselor before applying. The home must be a single-family house, a two-to-four unit property where you occupy one unit, or an FHA-approved condominium or manufactured home. You can review the program rules on the HUD HECM overview.
How and When a Reverse Mortgage Is Repaid
You do not repay a reverse mortgage monthly. The loan comes due when the last borrower dies, sells the home or permanently moves out, and it can also be called due if you stop paying property taxes and insurance or let the home deteriorate. Your heirs can sell the home and keep any equity that remains, or keep the house by paying the balance or 95% of the appraised value, whichever is lower. Because a HECM is non-recourse, neither you nor your heirs owe more than the home is worth. Proceeds are generally not taxable, according to the IRS guidance for senior taxpayers, although interest is generally not deductible until it is paid.
Getting the Most From This Reverse Mortgage Estimator
Run at least three scenarios. First, enter your real age, home value and mortgage balance with a realistic rate. Second, lower the appreciation to 0% to stress-test your remaining equity. Third, compare all four payout options in the table. If you may want cash for renovations or debt, compare the result with a personal loan calculator estimate, and read our guide on how to calculate your mortgage payments to understand the alternatives. Then speak with a HUD-approved counselor before deciding.
Accuracy and Limitations
This free reverse mortgage calculator applies the actual HECM cost rules but uses a simplified approximation of HUD principal limit factors, and it assumes a fixed rate for the projection. Real loans use official tables, the expected rate on the day you lock, adjustable rates that can rise or fall, and lender-specific fees. The results are estimates for education and planning only and are not financial or legal advice. Always get a written quote and speak with a licensed professional.
Frequently Asked Questions
What does a reverse mortgage calculator show?
A reverse mortgage calculator estimates how much a Home Equity Conversion Mortgage (HECM) could pay you based on your age, home value, interest rate and any existing mortgage. This free reverse mortgage calculator also shows your upfront costs, your net proceeds under each payout option, and how your loan balance, home value and remaining equity change year by year.
How accurate is this reverse mortgage estimator?
The estimator applies the real HECM cost rules, including the 2% upfront mortgage insurance premium, the origination fee cap and the 0.5% annual premium, but it uses a simplified approximation of HUD principal limit factors. Treat the results as a planning estimate. A lender quote, based on the official tables and the day's expected rate, will differ.
Is there a reverse mortgage calculator without personal information?
Yes. This reverse mortgage calculator without personal information asks only for numbers such as age, home value and rate. It never requests your name, email, phone number, address, Social Security number or credit score to show results. An email is requested only if you choose to export a report.
Is this free reverse mortgage calculator really free?
Yes. The free reverse mortgage calculator has no registration, no fees and no usage limits, and you can rerun it as many times as you like to compare scenarios.
How much can I borrow with a reverse mortgage?
The amount is your principal limit: a percentage of your home value, capped at the FHA maximum claim amount ($1,249,125 in 2026). Older borrowers and lower interest rates produce a higher percentage. Upfront costs and any existing mortgage are subtracted before you receive funds.
What does a reverse mortgage cost?
Expect an upfront mortgage insurance premium of 2% of the maximum claim amount, an origination fee that is capped at $6,000, third-party closing costs, and an annual mortgage insurance premium of 0.5% of your loan balance. Interest also accrues monthly. You can finance these costs into the loan, which reduces your available proceeds.
Do I have to make monthly payments on a reverse mortgage?
No monthly mortgage payments are required, but you must keep paying property taxes and homeowners insurance and maintain the home. Because nothing is paid back monthly, interest and insurance premiums are added to the balance, so the balance grows over time.
How does the reverse mortgage line of credit grow?
The unused portion of a HECM line of credit grows at the same rate your loan balance accrues, which is your interest rate plus the 0.5% annual insurance premium. The calculator shows this growth in the projection table and the chart when you choose the line of credit option.
What happens to a reverse mortgage after I die or move out?
The loan becomes due when the last borrower dies, sells, or permanently moves out. Your heirs can sell the home and keep any leftover proceeds, or keep the home by repaying the balance or 95% of the appraised value, whichever is less. A HECM is non-recourse, so heirs never owe more than the home is worth.
Are reverse mortgage proceeds taxable?
According to the IRS, reverse mortgage proceeds are loan advances, not income, so they are generally not taxable. They may still affect needs-based benefits such as Medicaid or SSI, and the interest is generally not deductible until it is actually paid, so ask a tax professional about your situation.