Aarp Reverse Mortgage Calculator

Introduction: Welcome to the AARP Reverse Mortgage Calculator, a tool designed to help you estimate the potential loan amount for a reverse mortgage. Whether you are exploring options for supplemental income in retirement or considering tapping into your home equity, this calculator provides a quick assessment based on your home value, interest rate, and desired loan term.

Formula: The calculator uses the reverse mortgage formula, which considers the home value, interest rate, and loan term to determine the potential loan amount. The formula accounts for the compounding interest over the selected loan term.

How to Use:

  1. Enter the current value of your home.
  2. Input the annual interest rate for the reverse mortgage.
  3. Specify the desired loan term in years.
  4. Click the “Calculate” button to obtain your estimated reverse mortgage loan amount.

Example: Suppose your home is valued at $400,000, and you are considering a reverse mortgage with an interest rate of 4.5% and a loan term of 15 years. Inputting these values into the calculator and clicking “Calculate” will provide you with an estimate of the potential reverse mortgage loan amount.


  1. Q: Can I change the loan term for this calculator? A: Yes, you can input different loan terms to see how they impact the potential reverse mortgage loan amount.
  2. Q: Is the interest rate fixed for the reverse mortgage? A: The interest rate used in the calculator is assumed to be fixed. Actual reverse mortgage products may have variable rates.
  3. Q: Can I use this calculator for any home value? A: Yes, you can input various home values to estimate the potential reverse mortgage loan amount based on your specific circumstances.
  4. Q: How is the reverse mortgage loan amount paid back? A: The reverse mortgage is typically repaid when the homeowner moves, sells the home, or passes away. The loan amount, plus accrued interest, is then paid from the sale of the home.

Conclusion: The AARP Reverse Mortgage Calculator is a valuable tool for individuals exploring the potential benefits of a reverse mortgage. Use this calculator to estimate your reverse mortgage loan amount and make informed decisions about leveraging your home equity in retirement. Always consult with financial advisors for personalized advice based on your specific circumstances.

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