Reverse Mortgage Calculator
Free reverse mortgage calculator. Estimate how much you can access through a reverse mortgage based on age, home value, and current rates.
Enter Your Details
Decision Support System
Showing national median — click Calculate above to personalize
Reverse Mortgage (HECM) Benchmarks
LIVE DATASource: HUD, FHA, NRMLA 2025–2026
Available Funds by Age
| Age | Approx PLF | On $500K Home | On $750K Home |
|---|---|---|---|
| 62 | 30% | $110,000 | $175,000 |
| 67 | 38% | $145,000 | $230,000 |
| 72 | 45% | $180,000 | $290,000 |
| 77 | 52% | $215,000 | $345,000 |
| 82 | 58% | $245,000 | $390,000 |
PLF varies by age and rate. Higher age and lower rates = more funds. Existing mortgage paid off first.
How Do You Compare?
UPDATES LIVEShowing median values. Click Calculate for your numbers.
What This Means For You
UPDATES LIVEYou can access $180,000 from your $500,000 home, with $320,000 in remaining equity.
Your Complete Picture
CONNECTEDHow this connects to your broader financial picture.
What Should You Do Next?
UPDATES LIVEBased on your reverse mortgage estimate.
→ Compare with HELOC
→ Track home value
HECM Readiness Check
| Factor | Status | Action |
|---|---|---|
| Age requirement | On Track | Must be 62+. Younger spouse affects available amount. |
| Primary residence | On Track | Must be your primary home. |
| Existing mortgage | Review | Must be paid off from proceeds, reducing available funds. |
| HUD counseling | Required | Mandatory before application. |
| Property condition | Review | Home must meet FHA standards. |
Explore Related Tools
This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer
Learn More About Reverse Mortgages
Things to Know
Essential concepts for understanding your results
Key FactorsWhat factors most affect your mortgage costs?
The four inputs with the largest impact: loan amount (every $10,000 adds ~$63/month at 6.5%), interest rate (0.5% change = $85-95/month on $300K), loan term (15-year saves $200K+ in interest but has 40-50% higher payments), and down payment (20% eliminates PMI, saving $100-300/month). Small improvements in any of these — especially rate — compound into massive savings over the loan's life.
Total CostWhy should you focus on total cost, not monthly payment?
A lower monthly payment often masks a higher total cost. Extending from 15 to 30 years cuts payments by 40% but doubles total interest. On $300,000: 15-year total = $455,000, 30-year total = $683,000. Similarly, a small rate difference (6.5% vs 7.0%) costs $35,000 over 30 years. Always compare total cost over the full term alongside monthly payment — the true cost is what leaves your pocket over the entire loan life.
PreparationHow can you improve your mortgage terms before applying?
Three high-impact actions: improve credit score (each 20-point gain saves 0.125-0.25% on rate — worth $15,000-30,000 over 30 years), reduce DTI (pay off small debts to lower your ratio below 36%), and increase down payment (reaching 20% eliminates PMI, saving $100-300/month). Spend 3-6 months optimizing these before applying — the investment of time produces returns measured in tens of thousands of dollars.
Reverse Mortgage Calculator: How Much Can You Access?
Whether you are looking for a reverse mortgage estimator, calculate reverse mortgage, how to calculate reverse mortgage, reverse mortgage formula, reverse mortgage mortgage, or home reverse mortgage — this free reverse mortgage calculator provides accurate estimates to help you plan and make informed financial decisions.
A reverse mortgage (Home Equity Conversion Mortgage — HECM) allows homeowners aged 62 or older to convert home equity into cash without selling or making monthly mortgage payments. Instead of paying the lender, the lender pays you — and the loan is repaid when you sell, move, or pass away. According to HUD, approximately 50,000 new reverse mortgages are originated annually.
Enter your age, home value, and current mortgage balance above. The calculator shows your estimated available proceeds, payout options (lump sum, monthly, credit line), and total costs over time.
How Much You Can Borrow
The amount depends on three factors: your age (older = higher percentage), home value (subject to the FHA lending limit of $1,149,825 in 2026), and current interest rates (lower rates = higher proceeds). General ranges:
| Age | % of Home Value Available | On $400K Home |
|---|---|---|
| 62 | 40-45% | $160,000-$180,000 |
| 67 | 45-50% | $180,000-$200,000 |
| 72 | 50-55% | $200,000-$220,000 |
| 77 | 55-60% | $220,000-$240,000 |
| 82+ | 60-70% | $240,000-$280,000 |
Any existing mortgage must be paid off first from the proceeds. A 72-year-old with a $400,000 home and $100,000 remaining mortgage: available proceeds = $200,000 - $100,000 = $100,000 net. If the home is fully paid off: the full $200,000 is available. The most popular payout: a credit line (chosen by ~60% of borrowers) that grows over time at the loan's interest rate, effectively increasing available funds as you age.
Costs and Risks to Understand
Costs: FHA mortgage insurance premium (2% upfront + 0.5% annual), origination fee (up to $6,000), closing costs ($2,000-$5,000), and ongoing interest accrual. Total upfront costs: $8,000-$15,000 (can be financed from proceeds). The loan balance grows over time as interest accrues on the borrowed amount — potentially consuming significant equity if you live 15-20+ years in the home.
Non-recourse protection: You (or your heirs) can never owe more than the home's value when the loan comes due. If the loan balance exceeds the home value: FHA insurance covers the difference. This protection is guaranteed by federal law for HECMs.
Risks: Reduced inheritance (equity consumed by loan growth). Property tax and homeowner's insurance must still be paid — failure to pay can trigger foreclosure. Loan becomes due if you leave the home for 12+ consecutive months (including nursing home stay). Surviving spouse not on the loan may face complications if the borrowing spouse dies (though HECM rules now provide protections for eligible non-borrowing spouses).
Frequently Asked Questions
Free Financial Checkup Guide
Get a step-by-step guide to evaluate your financial health.
No spam, ever. Unsubscribe anytime.