Reverse Mortgage Calculator
This calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.
How the reverse mortgage calculator works
It estimates the principal limit — the share of your home’s value you can borrow — from your age and the interest rate (older borrowers and lower rates allow more), then subtracts any existing mortgage to show the proceeds available.
Worked example: with home value of $450,000, age of youngest borrower of 70 and expected interest rate of 6.50%, the reverse mortgage calculator shows estimated available proceeds of $209,700.
- Principal limit
- $209,700
- Existing mortgage
- $0
- Available to you
- $209,700
- Home equity
- $450,000
The formula
Available proceeds = home value (capped at the HECM limit) × principal limit factor − existing mortgage balance.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the reverse mortgage calculator
How does a reverse mortgage work?
Homeowners 62+ borrow against their equity and make no monthly payments. The loan, plus accrued interest, is repaid when you sell, move out, or pass away.
How much can I get from a reverse mortgage?
It depends on your age, the home’s value (up to an FHA limit) and interest rates. Older borrowers and lower rates unlock more, as the calculator estimates.
What are the downsides?
Interest compounds on a rising balance, fees can be high, and it reduces the equity left to heirs. HUD counseling is required to ensure you understand the trade-offs.
Is the Reverse Mortgage Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.