Reverse Mortgage Calculator

Use our free reverse mortgage calculator to estimate how much you can access from your home equity with a reverse mortgage. Based on home value, borrower age, and expected interest rates.

Financial

Currency

Home Value

Borrower Age

years

Expected Interest Rate (%)

Upfront Costs/Fees

Formula

A reverse mortgage allows homeowners aged 62+ to convert part of their home equity into cash without selling. The loan is repaid when the last borrower leaves the home. This calculator provides an estimate of available funds.

Available = Home Value x Age Factor x Rate Factor - Costs

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your home's current market value.
2Enter the age of the youngest borrower (must be at least 62).
3Enter the expected interest rate.
4Include any upfront costs to see net proceeds.
5The estimated loan amount is based on age, home value, and rates.

Examples

$350k home, 68 years old, 6% rate

1.Age factor ≈ (68-62)/(95-62) = 0.182
2.Rate factor ≈ 1 - (6/10) = 0.4
3.Estimated loan = $350k x (0.4 + 0.182) x 0.5 ≈ $101,850
4.Net proceeds = $101,850 - $5,000 = $96,850

Result: $96,850

Frequently Asked Questions

Homeowners aged 62 or older who own their home outright or have a small mortgage balance. The home must be the primary residence.

The loan is repaid when you sell the home, move out permanently, or pass away. The repayment amount is the loan balance or home value, whichever is less.

No, reverse mortgage proceeds are considered loan advances, not income, and are generally tax-free.

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Reverse Mortgage Guide

CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

Homeowners aged 62 or older who own their home outright or have a small mortgage balance. The home must be the primary residence.

The loan is repaid when you sell the home, move out permanently, or pass away. The repayment amount is the loan balance or home value, whichever is less.

No, reverse mortgage proceeds are considered loan advances, not income, and are generally tax-free.

Reverse Mortgage Calculator

Formula

How It Works

Examples

$350k home, 68 years old, 6% rate

Frequently Asked Questions

Who qualifies for a reverse mortgage?

Do I need to repay a reverse mortgage?

Are reverse mortgage proceeds taxable?

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Reverse Mortgage Calculator

Formula

How It Works

Examples

$350k home, 68 years old, 6% rate

Frequently Asked Questions

Who qualifies for a reverse mortgage?

Do I need to repay a reverse mortgage?

Are reverse mortgage proceeds taxable?

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Related Articles