Reverse mortgage calculator
See how the loan and your home equity could change over time. This is an illustration, not a borrowing estimate.
Your numbers
View my results$200,000 advance less $75,000 mortgage payout. Fees are added to the loan.
The gap is your estimated equity before selling costs. It can become negative in this illustration.
Year-by-year numbers
| Year | Home value | Loan balance | Equity |
|---|---|---|---|
| 0 | $800,000 | $205,000 | $595,000 |
| 1 | $800,000 | $219,601 | $580,399 |
| 2 | $800,000 | $235,242 | $564,758 |
| 3 | $800,000 | $251,997 | $548,003 |
| 4 | $800,000 | $269,946 | $530,054 |
| 5 | $800,000 | $289,173 | $510,827 |
| 6 | $800,000 | $309,769 | $490,231 |
| 7 | $800,000 | $331,832 | $468,168 |
| 8 | $800,000 | $355,467 | $444,533 |
| 9 | $800,000 | $380,785 | $419,215 |
| 10 | $800,000 | $407,907 | $392,093 |
Opening loan: $205,000. Interest added over 10 years: $202,907.
Assumes one advance, no payments during the period and a constant interest rate. Selling costs and repayment charges are excluded.
Details and assumptions
The opening loan equals the gross advance plus financed fees. It grows at a constant nominal annual rate compounded semi-annually. The mortgage payout reduces the cash you receive, not the loan you owe. No additional advances or repayments are modelled.
Home values change at your chosen annual percentage. The example excludes selling costs, property taxes, insurance, maintenance, discharge fees and prepayment charges. Actual rates can change at renewal. Some variable-rate products use different compounding. A contractual equity protection, where available, has conditions and is not modelled here.
Formula: loan after t years = opening loan × (1 + annual rate ÷ 2)2t, using the rate as a decimal. Values are rounded only for display.
Read about interest and costs