Finance
Reverse Mortgage Calculator
A reverse mortgage advances funds = eligible home value × principal-limit factor, minus costs and any mortgage. Enter your age, home value and balance to estimate the cash a HECM could provide — a ballpark, not a quote.
You & your home
Estimated current market value
$
Must be 62 or older to qualify
yrs
Paid off first from the proceeds
$
HUD uses this to set how much you can draw
%
MIP, origination and closing, as a percent of value — financed
%
Estimated funds available
$154,000
Principal limit $224,000 · PLF 44.8%
Principal limit
$224,000
Less mortgage payoff
$50,000
Less upfront costs
$20,000
Net available
$154,000
Eligible home value
$500,000
Approx. monthly tenure
$427.78
Rough estimate only
The real amount comes from HUD's official principal-limit tables and your exact rate and age on the day. This uses an approximate factor — treat it as a ballpark, not a quote.
Estimate only, not a quote or offer. Reverse-mortgage amounts are set by HUD tables and your lender. The balance grows with interest and fees and is repaid when the home is sold or you leave it.
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The basics
What is a reverse mortgage?
It turns home equity into cash for homeowners 62 and older, with no monthly payment required. Two ideas define how much you can get and what it costs.
value × PLF
Age and rate set the amount
You can borrow a share of your equity — the principal-limit factor. It grows with the youngest borrower's age and shrinks as the expected rate rises, because the loan is repaid only when you leave the home.
Age 70 unlocks about 45% of value here
the balance grows
No payments, rising balance
Instead of paying the loan down, interest and fees are added to it, so the balance grows and your equity falls. It is repaid when the home is sold or you move out for good.
Interest and fees add to the balance over time
Method
How the estimate is built
Four steps from your home value to the funds available.
- 1
Cap the home value at the FHA limit
Only home value up to the HECM lending limit counts toward the loan.
min($500,000, $1,209,750) = $500,000 - 2
Apply the principal-limit factor
Multiply the eligible value by the PLF for the youngest borrower's age and the expected rate.
$500,000 × 44.8% = $224,000 - 3
Subtract costs and any mortgage
Upfront costs and any existing mortgage must be paid from the proceeds first.
− $20,000 − $50,000 - 4
What is left is yours to draw
The remainder is available as a lump sum, a line of credit, or monthly payments.
= $154,000 available
Worked examples
More available with age
A $500,000 home with a $50,000 mortgage, at an expected 7%. The older the borrower, the higher the factor and the funds.
| Age | PLF | Principal limit | Net available |
|---|---|---|---|
| 62 | 37.0% | $185,000 | $115,000 |
| 70 | 44.8% | $224,000 | $154,000 |
| 75 | 50.0% | $250,000 | $180,000 |
| 80 | 55.8% | $279,000 | $209,000 |
| 85 | 62.2% | $311,000 | $241,000 |
Where it shows up
How retirees use it
Three common uses — each with a catch to weigh.
supplement income
Cover the gap
Tenure payments can top up retirement income for as long as you live in the home — useful when savings fall short.
Monthly payments for life in the home
clear the mortgage
End a monthly payment
The proceeds must clear any existing mortgage, which removes that monthly payment — often the main draw for house-rich, cash-poor retirees.
Pay off the existing loan first
standby credit line
A safety net
A HECM line of credit grows on the unused balance, giving a flexible reserve for emergencies later in retirement.
An unused line that grows over time
Reference
Ways to take the money
A HECM can pay out several ways — or a mix. General guidance, not advice.
| Option | How it pays | Best for |
|---|---|---|
| Line of credit | Draw as needed; unused portion grows | Flexibility and a safety net |
| Tenure | Fixed monthly for life in the home | Steady income top-up |
| Term | Fixed monthly for a set period | Bridging a defined gap |
| Lump sum | All at once (fixed rate) | A one-time large need |
Worth knowing
Six things to weigh first
A reverse mortgage is powerful and easy to misjudge — know these before applying.
equity shrinks
Less for your heirs
The growing balance eats into the equity you leave behind. If leaving the home to family matters, factor that in.
upfront costs are high
Fees are significant
FHA mortgage insurance, origination and closing costs are steep and are usually financed, reducing the funds you receive.
you keep the bills
Taxes and upkeep continue
You must keep paying property taxes, insurance and maintenance. Falling behind can trigger default and repayment.
moving triggers it
Leaving repays the loan
Moving out for more than a year — including into care — makes the loan due, which can force a sale.
counseling is required
HUD counseling first
A HECM requires independent HUD-approved counseling before you apply, to be sure you understand the trade-offs.
non-recourse
You cannot owe more than the home
A HECM is non-recourse: neither you nor your heirs ever owe more than the home is worth when it is sold to repay.
Quick chart
Principal limit by value and age
Estimated principal limit (before costs and any mortgage payoff) at an expected 7% — read the row for your home value and the column for age.
| Home value | Age 62 | Age 70 | Age 75 | Age 80 | Age 85 |
|---|---|---|---|---|---|
| $300,000 | $111,000 | $134,400 | $150,000 | $167,400 | $186,600 |
| $400,000 | $148,000 | $179,200 | $200,000 | $223,200 | $248,800 |
| $500,000 | $185,000 | $224,000 | $250,000 | $279,000 | $311,000 |
| $700,000 | $259,000 | $313,600 | $350,000 | $390,600 | $435,400 |
| $1,000,000 | $370,000 | $448,000 | $500,000 | $558,000 | $622,000 |
Approximate. Value above the $1,209,750 FHA limit is not counted. Real factors come from HUD tables.
How we calculate this
The method and its limits
This is a simplified estimate — the honest place to say so is here.
principal limit = eligible value × PLF
The core estimate
Eligible value (home value capped at the FHA limit) times a principal-limit factor for the youngest borrower's age, trimmed as the expected rate rises.
net = limit − costs − mortgage
What you can draw
Upfront costs and any existing mortgage are subtracted, because both must be settled from the proceeds before any cash reaches you.
- The PLF here is approximate; real factors come from HUD tables and depend on the exact expected rate.
- The monthly tenure figure is a rough spread to age 100 and ignores the loan's own growth.
- Home value above the FHA HECM limit is not counted.
- This is an estimate for orientation, never a quote or an offer.
Where to get a reverse mortgage
Where to start
Rows are ordered by borrower fit, not by any payout. HUD counseling comes first by design — it is required. Rates are ranges only; a lender gives the real figures.
| Where | Examples | Best for | Pricing |
|---|---|---|---|
| HUD-approved counselor | Required before you apply | Understanding the loan first | Low-cost / free |
| Reverse-mortgage lender | FHA-approved HECM lenders | The actual loan | Market range |
| Online marketplace | LendingTree | Comparing lenders | Market range |
| Non-profit advice | AARP, NCOA | Unbiased guidance | Free |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the terms you are offered. A HECM requires HUD-approved counseling before you apply.
Sources
Where the method comes from
- U.S. Department of Housing and Urban Development (HUD) — HECM program and principal-limit factors.
- Consumer Financial Protection Bureau — reverse mortgages, costs and consumer risks.
- FHA HECM lending limit (2024).
FAQ
Common questions
The amount is your home value (capped at the FHA limit of $1,209,750) times a principal-limit factor (PLF) set by your age and the expected rate — then minus costs and any mortgage you must pay off. On a $500,000 home at age 70 with a $50,000 mortgage, the estimate is about $154,000 available, from a principal limit near $224,000. This is an estimate; a lender uses the official HUD tables.
A reverse mortgage (usually a HECM, insured by the FHA) lets homeowners 62 and older borrow against their equity with no required monthly payments. Interest and fees are added to the balance, which grows over time. The loan is repaid — from the home, typically — when the last borrower sells, moves out for good, or passes away. You keep the title and must keep paying taxes, insurance and upkeep.
The PLF is the share of your home value you can borrow. It rises with the youngest borrower's age and falls as the expected interest rate rises — older borrowers and lower rates unlock more. At age 70 the factor is roughly 45% in this estimate; at 80 it is around 56%. HUD publishes the exact factors.
Yes. Because a reverse mortgage is repaid when you leave the home, an older borrower has a shorter expected loan life, so the lender can advance more. On the $500,000 example, the estimate rises from about $115,000 at age 62 to $209,000 at 80 — same home, more available with age.
A HECM offers several options: a lump sum, a line of credit you draw as needed (the unused portion grows over time), fixed monthly payments for as long as you live in the home (tenure) or for a set period (term), or a combination. The line of credit is popular because the available amount grows, and you only accrue interest on what you actually draw.
Yes. You keep the title and live in the home as your primary residence. But you remain responsible for property taxes, homeowners insurance, and maintenance — falling behind on those can trigger default and force repayment. The lender does not own your home; the loan is simply secured against it.
The balance grows instead of shrinking, so it eats into the equity you leave to heirs. Upfront costs — FHA mortgage insurance, origination and closing fees — are significant. You must keep up taxes, insurance and upkeep or risk default. And moving out, even to assisted living, can trigger repayment. It suits some retirees well, but the trade-offs are real.
When the loan comes due, heirs can repay the balance and keep the home, or sell it to settle the loan. A HECM is non-recourse: if the balance exceeds the home's value, FHA insurance covers the gap, so heirs never owe more than the home is worth. Any remaining equity after repayment belongs to the estate.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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