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Reverse Mortgage Calculator

Thinking about tapping into your home equity during retirement? The Reverse Mortgage Calculator helps older homeowners estimate how much money they can access through a reverse mortgage—providing clarity, confidence, and peace of mind for retirement planning



Reverse Mortgage Calculator

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What is Reverse Mortgage Calculator

The Reverse Mortgage Calculator is a financial planning tool designed specifically for homeowners aged 62 or older. It estimates how much equity you can convert into tax-free cash using a reverse mortgage—also known as a Home Equity Conversion Mortgage (HECM). Unlike traditional mortgages, a reverse mortgage allows you to borrow against the value of your home without making monthly payments, as long as you continue to live in the property.

This tool is especially useful for retirees who want to supplement their income, cover medical costs, or pay off debts without selling their home. It provides a quick and personalized estimate based on your age, home value, and existing mortgage balance.




How it works

Reverse Mortgage Calculator

To use the Reverse Mortgage Calculator, you enter key details such as your age (or the youngest homeowner’s age), current home value, existing mortgage balance, and location. The calculator then applies FHA guidelines and reverse mortgage formulas to estimate how much equity you can access—either as a lump sum, monthly payments, or a line of credit.

For instance, older homeowners with more home equity and lower mortgage balances generally qualify for higher payouts. The tool also considers factors like interest rates and lending limits, which vary annually. While the actual amount will depend on lender terms and HUD rules, the calculator gives a reliable approximation that helps you understand if a reverse mortgage fits your long-term retirement goals.



Frequently Asked Questions

Who qualifies for a reverse mortgage Toggle
Homeowners aged 62 or older who live in the property as their primary residence and have substantial home equity may qualify
Will I lose ownership of my home Toggle
No. You retain ownership of your home. The loan is repaid when you move out, sell the home, or pass away.
How much money can I get from a reverse mortgage Toggle
It depends on your age, home value, current mortgage balance, and interest rates. Older borrowers with more equity usually qualify for more.
Are reverse mortgage proceeds taxable Toggle
No. The funds you receive from a reverse mortgage are considered loan proceeds, not income, so they are generally tax-free.
What happens if I outlive the reverse mortgage Toggle
You won’t be forced to move out. The loan only becomes due when you sell the home, move out permanently, or pass away.