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Reverse Mortgage Estimate Calculator

Work out reverse mortgage estimate instantly with clear inputs, formula shown and shareable results.

About Reverse Mortgage Estimate Calculator

A reverse mortgage converts home equity into monthly payments without requiring repayment during the borrower's occupancy. The advance rate rises with age because the expected term is shorter, and interest accrues on the growing balance.

Formula

Reverse mortgage

Eligible = value × LTV (rising with age); monthly = eligible / [((1+r)^n - 1)/r]

Worked example

With the default values below, Reverse Mortgage Estimate Calculator returns Estimated Monthly Payment of $15,055.36. Change any input above and every figure here is recalculated in your browser.

Inputs used

Property Valueminimum 0
12,000,000
Borrower Ageaccepts 60–90
68
Interest Rateaccepts 0–20 %
10 %
Payment Period In Yearsaccepts 5–25
15

Results

Estimated Monthly Payment
$15,055.36
Eligible Loan Amount
$6,240,000
Loan To Value Allowed
52.00%
Total Received Over The Period
$2,709,964.68

Step by step

  1. 1Values used
  2. 2Reverse mortgage
  3. 3Estimated Monthly Payment= 15,055.36
  4. 4Eligible Loan Amount= 6,240,000
  5. 5Loan To Value Allowed= 52.00
  6. 6Total Received Over The Period= 2,709,964.68

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

Frequently Asked Questions

Who repays the loan?

It is settled from the property on sale, usually after the borrower's death or permanent move, with heirs able to redeem it.

Why is the monthly amount modest?

Because interest compounds on every payment made for the whole remaining term, which limits what the equity can support.

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