Reverse mortgage calculator (estimate proceeds & equity)

Estimate potential reverse mortgage proceeds from age, home value, rates, and payoffs. View balance vs home value over time (educational only).

Your inputs

About this calculator

Estimate FHA reverse-mortgage proceeds from home value and borrower age. Not a loan offer—confirm with a HUD-approved counselor.

Your information

Enter your best estimates below.

Estimated home value today.

We use the lower of your home value and the FHA national limit (1,249,125).

Youngest borrower on the loan — must usually be 62+.
72
Used to estimate how much you can borrow (planning table, not the live HUD table).
5.25%

Clamped to 3–7% in this simplified model (official tables use finer increments).

Interest that builds on the loan balance over time.
6.50% + 0.50%

We add ~0.50% annual MIP to the note rate for a simple accrual speed (not a full servicing model).

Liens that must be paid off at closing.
Fees and costs paid at closing.

How we run the estimate

Change home appreciation below. Home value, age, and loan rates stay in the panel above.

3.0%
FHA lending limit
Claim amount cannot exceed $1,249,125 (2026-style national cap)
Principal limit factor
Planning table—your lender uses the live HUD table, which can differ
Mortgage insurance on the loan
0.5% per year on top of your note rate
Cash to you at closing
Existing loans and closing costs are paid before you receive money
Long-term chart
20-year projection at 3% home appreciation per year

Your results

Principal limit

Estimated maximum loan amount

$298K

After payoffs and fees, about $191,375 could be available as cash or a credit line at closing (simplified). Based on a home value cap of $550,000 and a 54.25% borrowing factor for your age.

Net at closing (est.)

$191,375

Home value used (FHA cap)

$550,000

Loan balance vs. home value

Assumes no voluntary prepayments and no further draws after closing. Net equity is home value minus loan balance (not fees or selling costs).

  • Home value
  • Loan balance
  • Your remaining equity
012345678910111213141516171820Year$-450000$0$450K$900K$1.4M

Uses of principal limit at closing

Single stacked bar: liens, estimated fees, and net cash at closing.

  • Cash to you
  • Closing costs
  • Liens paid
At closing$0$75K$150K$225K$300K

Year-by-year snapshot

Selected years — scroll for full horizon.

YearLoan balanceHome valueNet equity
0$298,375$550,000$251,625
1$319,945$566,729$246,784
2$343,073$583,966$240,893
3$367,874$601,728$233,854
4$394,468$620,030$225,563
5$422,984$638,889$215,905
6$453,561$658,322$204,760
7$486,349$678,345$191,996
8$521,508$698,978$177,470
9$559,208$720,238$161,030
10$599,633$742,144$142,512
11$642,980$764,717$121,737
12$689,461$787,977$98,516
13$739,303$811,944$72,642
14$792,747$836,640$43,893
15$850,054$862,087$12,033
16$911,505$888,309-$23,196
17$977,398$915,327-$62,070
18$1,048,054$943,168-$104,886
19$1,123,818$971,855-$151,962
20$1,205,059$1,001,415-$203,643

Beyond this calculator

Home equity is one asset in your net-worth picture

This illustration sizes FHA reverse-mortgage proceeds—not a loan offer. A complete Retirelens plan also evaluates:

  • Heirs, estate, and staying in the home long term
  • Property taxes, insurance, and upkeep while you live there
  • Medicaid and other programs sensitive to home equity
  • Alternatives such as downsizing or other borrowing

Free to startNo credit card required

Interpretation

What this means

Planning context for the estimates above. Not tax, legal, or investment advice.

We use $550,000 as the home value for sizing (after any FHA limit). With a 54.25% borrowing factor for your age, the maximum loan amount is about $298,375 — the ceiling on what can be advanced in this simplified model.

After paying about $95,000 toward liens and $12,000 in closing costs, about $191,375 remains as cash or available credit in this estimate.

Over 20 years, if the note rate plus our simple MIP add-on held and the home appreciated about 3.0% annually, net equity (home minus loan) would land near -$203,643 — highly sensitive to appreciation, maintenance, taxes, insurance, and whether you take future draws.

HUD requires counseling for a HECM. Compare this output only as a conversation starter with a HUD-approved housing counselor and a licensed lender.

Methodology

How this calculator works

The rules and math behind this estimate.

We start with the lower of your home value and a planning FHA national lending limit. A borrowing factor for your age and expected interest rate comes from a small planning table (older borrowers and lower rates usually mean a higher factor) — not copied from official HUD tables.

Maximum loan amount equals capped home value × borrowing factor. At closing we first allocate to liens up to that limit, then to your entered closing costs, and treat the remainder as cash or line availability. For the long-run chart we accrue interest monthly using the note rate plus a flat 0.50% annual stand-in for ongoing mortgage insurance, with no voluntary payments and no further draws.

Real FHA reverse mortgages include exact insurance rules, set-asides, index margins, life-expectancy set-asides, and underwriting. This tool is educational only and not an offer of credit.

Help

Frequently asked questions

Straight answers to common questions about this calculator.

How much money can I get from a reverse mortgage?

It depends on your age, home value, interest rates, and what you still owe on the home. Older borrowers and higher home values usually mean more available — up to program limits.

What is a reverse mortgage?

A loan against your home for people 62+. You generally do not make monthly principal and interest payments like a regular mortgage. The balance grows over time and is usually paid when you leave the home.

Will I lose my home?

You keep title, but you must pay property taxes, insurance, and upkeep. If you do not, the lender can foreclose — same as with any home loan.

Is this a real lender quote?

No. This is a planning estimate only. Real loans use official government tables, fees, and counseling. Talk to a HUD-approved counselor before deciding.

Your full retirement picture

Retirement is more than money

Free to startNo credit card required

A good retirement plan covers money, health, how you spend your time, people you care about, and what you pass on. That is how Retirelens looks at the full picture.

Finance

Know where you stand and what to do next with your money.

74% of planners reported satisfaction with retirement income vs. 43% of non-planners (Goldman Sachs)

Health

Secure solid coverage, stay ahead with preventive care and healthy habits a staple.

68% of adults ages 50–64 said they were concerned that federal policy changes could affect their health insurance coverage. (University of Michigan)

Purpose

Shape days you look forward to, with steps to get there.

Research shows that a stronger sense of purpose is associated with lower mortality risk among adults over age 50. (American Medical Association)

Connections

Strengthen relationships and build a support circle.

A longitudinal study of adults aged 65+ found that older adults with more diverse social networks had a lower risk of death and better cognitive and physical function than those with less diverse networks. (Chico Health Aging Project)

Legacy

Organize your assets and document so your family isn't left guessing.

Without a proper estate plan, more than half of families experience disputes or have assets end up under court control. (LegalShield)