How Reverse Mortgage Calculator

A Reverse Mortgage Calculator is a valuable tool for individuals considering a reverse mortgage. This financial instrument allows homeowners to convert part of their home equity into cash, providing a source of income during retirement.

Formula: The calculation involves determining the loan amount using the formula: Result=(Home Value−Current Mortgage Balance)×(1+Interest Rate100)Loan TermResult=(Home Value−Current Mortgage Balance)×(1+100Interest Rate​)Loan Term

How to Use:

  1. Enter the Home Value, Current Mortgage Balance, Interest Rate, and Loan Term.
  2. Click the “Calculate” button to obtain the reverse mortgage amount.
  3. The result will be displayed in the designated field.

Example: Suppose your home value is $300,000, the current mortgage balance is $100,000, the interest rate is 5%, and the loan term is 10 years. After using the calculator, you find that the reverse mortgage amount is $224,338.47.


  1. What is a Reverse Mortgage?
    • A reverse mortgage is a loan that allows homeowners to convert part of their home equity into cash, typically used as a source of income during retirement.
  2. Who is eligible for a Reverse Mortgage?
    • Eligibility is usually based on age, with most programs requiring homeowners to be at least 62 years old.
  3. Is the interest rate fixed or variable?
    • Interest rates for reverse mortgages can be fixed or variable, depending on the loan terms.
  4. How is the loan amount determined?
    • The loan amount is determined by factors such as home value, current mortgage balance, interest rate, and loan term.
  5. Can I lose my home with a reverse mortgage?
    • No, as long as you comply with the loan terms, you can remain in your home.
  6. What happens if I outlive the loan term?
    • You can continue to live in your home, and the loan will not need to be repaid until you move out or pass away.
  7. Can I repay the reverse mortgage early?
    • Yes, you can repay the loan at any time without incurring a prepayment penalty.
  8. Are there any upfront costs for a reverse mortgage?
    • Yes, there are closing costs and fees associated with obtaining a reverse mortgage.
  9. What happens to the home after the borrower passes away?
    • The heirs can choose to repay the loan and keep the home, or the home can be sold to repay the loan.
  10. Is counseling required before obtaining a reverse mortgage?
    • Yes, HUD requires potential borrowers to undergo counseling to ensure they fully understand the terms and implications of a reverse mortgage.

Conclusion: A Reverse Mortgage Calculator is a valuable resource for individuals exploring the option of a reverse mortgage. It provides a quick and efficient way to estimate the potential loan amount based on key financial inputs. As with any financial decision, it’s essential to seek professional advice and thoroughly understand the terms and conditions before proceeding with a reverse mortgage.

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