Reverse Mortgage Calculator

Reverse Mortgage Calculator — Estimate Your HECM & Jumbo Loan Proceeds Free

Use our free reverse mortgage calculator to figure reverse mortgage proceeds in seconds. It works for normal HECM loans and jumbo reverse mortgages, and it’s designed for homeowners 62 and older (55 and older for jumbo products). No personal information needed, simply enter your house worth, age and a few loan facts to see your results instantly.

No Personal Information Required This free reverse mortgage calculator does not require your name, email, phone number or Social Security number.

Key Takeaways

• A reverse mortgage allows homeowners 62+ to convert home equity into cash without making monthly payments.
• The loan amount you qualify for is based on your age, house value, and current interest rates.
• The maximum for HECM loans is $1,249,125 in 2026; jumbo loans may be larger.
• As interest and fees are charged each month, the loan sum will grow over time.
• Calculator provides immediate results and does not collect any personal information.

How to Use This Free Reverse Mortgage Calculator

Get an estimate in under a minute. Do the following:

• Enter Your Home Value — use your best guess now A formal appraisal will be done by HUD later on to confirm that number.

• Existing Mortgage Balance Enter any remaining balance on your current home loan.

• Enter your Age — The PLF is based on the age of the youngest borrower.

• Enter the Interest Rate – use the current HECM anticipated rate as a guideline.

• Select your Payout Type – Lump Sum, Monthly Payments or Line of Credit.

• Choose your Loan Term and Closing expenses or click to include closing expenses in the loan.

Click Calculate to show your Net Loan Proceeds, Estimated Monthly Disbursement, Total Interest Accrued and entire Loan Balance Schedule.

How Reverse Mortgage Loan Calculations Work — Formulas Explained

Most reverse mortgage calculator sites hide the math. We haven’t. Here’s exactly how your numbers are computed, broken down into four simple steps.

Step 1 — The Principal Limit Factor (PLF)

The U.S. Department of Housing and Urban Development (HUD) sets the Principal Limit Factor (PLF). It is dependent on two things: your age and expected interest rate (EIR). The PLF lets you know how much of your home’s value (up to the HECM lending limit) you can borrow against.

Formula:

Principal Limit = MIN(Home Value, $1,249,125) × PLF(Age, EIR)

Example: Home Value = $400,000 | Age = 72 | EIR = 5.75% → PLF ≈ 0.435 Principal Limit = $400,000 × 0.435 = $174,000

PLF is generally increased in older ages. The greater the interest rate, the smaller your PLF will usually be. Some example values here.

Step 2 — Net Available Proceeds

Once your primary limit is determined, several expenses are deducted to arrive at your real benefit.

Formula:

Net Available Proceeds = Principal Limit − Existing Mortgage Payoff − Closing Costs − Upfront MIP

Upfront MIP = 2% × MIN(Home Value, $1,249,125)

Origination Fee = MAX($2,500, MIN(1% of home value above $200,000, $6,000))

In short: If you have an existing mortgage and owe money on it, the reverse mortgage revenues are used first to pay down that amount. Closing fees are also removed, in addition to an upfront mortgage insurance premium (MIP). The good news is that most lenders and our calculator allow you to roll your closing expenses into the loan instead of paying them out of pocket.

Step 3 — Monthly Disbursement (Tenure Payment)

If you select monthly payments instead of a lump sum, your net principal limit is amortized using a payment factor based on your interest rate and life expectancy, as found in HUD’s actuarial tables.

Simplified formula:

Monthly Payment ≈ [PL × r] ÷ [1 − (1 + r)^−n]

Where PL = Net Principal Limit, r = monthly interest rate, and n = expected loan term in months.

Step 4 — Loan Balance Growth Over Time

There are no monthly payments, so your debt increases every year. That gets put on to what you already borrowed, plus interest and an annual MIP charge (0.5% of the outstanding debt).

Formula:

Balance(t) = Initial Balance × (1 + r)^t + Accrued MIP(t)

Example: $174,000 principal at 6.5% annually is around $326,000 in 10 years, before MIP is added.

Which is exactly why our calculator includes a detailed Loan Balance Schedule – so you can see, year-by-year, how compounding interest eats away at the equity left in your property.

Sample PLF scenarios – real numbers depend on HUD’s current actuarial tables and daily rate index. Use the free HECM calculator above to get an idea of your own results.

HECM Calculator — How the FHA-Insured Reverse Mortgage Works

The only reverse mortgage insured by the Federal Housing Administration (FHA) is a Home Equity Conversion Mortgage, or HECM. It’s sponsored by HUD and available for homeowners 62 and older.

The 2026 HECM lending ceiling is $1,249,125, which is 150% of the FHFA conforming loan limit of $832,750.

There are three payout possibilities, which directly correspond to the fields in our hecm mortgage calculator:

• Lump Sum: single payment due up ahead at a fixed rate of interest.
• Monthly (Tenure) Payments: consistent monthly income, accessible with an adjustable rate.
• Line of Credit: Draw money as you need it, unused credit might grow over time, also variable rate.

All HECM borrowers MUST have an independent counseling session with a HUD-approved counselor prior to closing. This is not a choice, it is a federal duty.

HECM eligibility checklist:

• Age 62 or above (youngest borrower)
• The home must be your primary residence 
• You must have enough home equity
• You cannot be in default on any federal debt.

Jumbo Reverse Mortgage Calculator — For Homes Above $1,249,125

If your property is worth more than the HECM maximum, you can use a jumbo reverse mortgage calculator to discover what your options are. The FHA does not offer jumbo (or proprietary) reverse mortgages, although they are available from private lenders and can be used on residences worth up to about $4 million.

Major changes from a typical HECM:

• The minimum age is considerably lower – often 55, but this varies by lender and state.
• Usually higher interest rates . No upfront MIP as the loan is not FHA-insured .
• The loan-to-value ratios differ for each lender, but are generally between 40% and 65%, depending on your age and the value of the home.

To use our calculator for a jumbo estimate, input the same fields as a HECM. Keep in mind our calculator employs HECM PLF logic, thus jumbo findings are an approximation. Some lenders that provide jumbo reverse mortgages include: Finance of America (HomeSafe, up to $4M), Longbridge Platinum, and AAG/FAR.

Pro Tip: If your home is worth more than $1,249,125, enter $1,249,125 as your home value to view your maximum HECM proceeds. Then compare that number to a jumbo quotation from a direct lender jumbo loans can occasionally release an additional $50,000 to $200,000 or more in cash, depending on the value of your house.

Reverse Mortgage Calculator AARP — What AARP Recommends

AARP does not have its own reverse mortgage calculator. Instead, the organization refers homeowners to HUD-approved counseling and educational services before proceeding with a HECM.

AARP’s official view is that homeowners should always talk to a HUD-approved counselor before signing anything – a requirement that this page’s calculator supports by allowing you gain understanding first, with zero compulsion to give contact details.

AARP also calls a reverse mortgage a “last resort” and advises that homeowners explore options such as a HELOC, cash-out refinance or home equity loan before going the reverse mortgage way. AARP also has been a vocal supporter of non-borrowing spouse safeguards, which were enhanced by FHA rule revisions in 2015 to better protect spouses not listed as co-borrowers.

Like AARP, our free reverse mortgage calculator provides an estimate of your HECM loan without the need for personal information or a meeting with a counselor upfront.

Reverse Mortgage Calculator Without Personal Information

This calculator does not require any personal information. No name. No e-mail. No phone. No Social Security number. No credit check.

A lot of reverse mortgage calculator sites make you fill out a contact form in order to see the results, then sell your contact details to lenders who will call and email you constantly. We developed this tool differently.

What inputs ARE needed all non personal:

• Value of house
• Current mortgage balance
• Borrower’s age
• Interest rate

These are all either public knowledge or something you already know. No data is stored No advertising cookies are set And nothing is shared with third parties.

Reverse Mortgage in Australia — How Calculations Differ

In Australia, what Americans term a reverse mortgage is often called “equity release”. These products are regulated under the National Consumer Credit Protection Act (NCCP) and the Australian Securities and Investments Commission (ASIC).

Some major differences with the U.S. system:

• No government-backed program: Unlike the FHA-insured HECM in the US, all Australian reverse mortgage programs are from private lenders.
• Minimum age is lower, generally 60 against 62 in the U.S. Beginning loan-to-value (LVR) limits Australian lenders normally cap LVR at 15–20% at age 60, increasing by approximately 1% per year of age (eg about 35% at age 75).
• Higher interest rates: Australian reverse mortgage rates are often between 7.5% and 8.5% p.a. (as of 2026), which are higher than the lower U.S. HECM rates.
• The key lenders are Heartland Seniors Finance, P&N Bank and IMB Bank.
• Negative equity protection: Since 2012, every Australian reverse mortgage must have a “no negative equity guarantee” (NNEG), similar in spirit to the non-recourse protection put into U.S. HECM loans. 

Note for Australian Calculator Users: This calculator is based on U.S. HECM logic. For Australian borrowers, you may still use it as an approximate estimate Enter your house worth in AUD and use the interest rate offered by your lender and, remember, Australia’s lower LVR limitations mean your true available amount will likely be smaller than what the HECM based formula implies. For an exact figure, talk to an ASIC-licensed credit adviser.

Reverse Mortgage vs. Alternatives — Which Is Right for You?

There are other ways to access your home equity than a reverse mortgage. That’s how it stacks up against other popular choices.

True Cost of a Reverse Mortgage — Fees, MIP, and Interest

Reverse mortgage consumers are often surprised at the up-front and recurring payments. Here are the actual 2026 numbers.

• Upfront MIP: 2% of MIN(home value, $1,249,125) On a $400,000 home, that’s $8,000.
• Origination fee: MAX( $2,500, 1% of value over $200,000), up to $6,000.
• Third-party closing costs generally include: Appraisal (around $500–$800) Title insurance Recording fees $2,000–$4,000.
• Annual MIP: 0.5% of your outstanding loan balance, which accrues monthly and is added to your loan balance.
• Loan Servicing Fee: Up to $35/month. Some lenders charge this, some don’t.

For a $400,000 home, total upfront expenditures are approximately $10,000 – $18,000, depending on the state.

On top of all this, the interest accumulates. Even with a small initial amount it might grow to be a considerable sum over 15-20 years. That is precisely what our loan balance plan is designed to demonstrate to you.

Pros and Cons of a Reverse Mortgage