Reverse Mortgage Calculator
Estimate Your Loan Balance, Withdrawals, Total Interest, Projected Home Value, and Remaining Equity Over Time.
HECM Reverse Mortgage Calculator
Calculation Results
Accumulation Schedule
| Year | Date | Interest | Draw Amount | End Balance | Cumulative Draw | Cumulative Interest |
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| Month | Date | Interest | Draw Amount | End Balance | Cumulative Draw | Cumulative Interest |
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How This Reverse Mortgage Calculator Works
This calculator estimates how a reverse mortgage balance may grow over time based on an initial lump sum advance, monthly draws, draw increases, and home value appreciation. It helps illustrate how loan proceeds, accrued interest, and changing home value can affect remaining home equity.
What Is a Reverse Mortgage?
A reverse mortgage is a type of home loan designed primarily for older homeowners that allows them to convert a portion of their home equity into cash. Instead of making monthly mortgage payments to a lender, the homeowner receives funds as a lump sum, monthly payments, a line of credit, or a combination of these options.
The loan balance increases over time because interest and fees are added to the amount borrowed. In most cases, the loan becomes due when the borrower sells the home, permanently moves out, or passes away. Reverse mortgages are often used to supplement retirement income, cover living expenses, or pay for healthcare and home-related costs.
Because a reverse mortgage uses home equity, it can reduce the amount of equity remaining in the property over time. Homeowners should carefully review the costs, risks, eligibility requirements, and repayment conditions before choosing this type of loan.
What Factors Affect Reverse Mortgage Costs?
Reverse mortgage outcomes are influenced by interest rates, borrower age, home value, available equity, disbursement method, fees, and the length of time the loan remains outstanding. Higher draw amounts and longer borrowing periods generally increase total interest and reduce remaining home equity.
What the Results Show
After you click Calculate, the tool displays your estimated mortgage balance, upfront advance, total interest, total withdrawals, equity remaining, and projected home value at the end of the selected draw period. It also provides annual and monthly schedules, along with charts that visualize balance growth and equity changes.
Who May Find This Useful
This calculator may be useful for homeowners, family members, financial planners, and anyone researching how reverse mortgage borrowing can affect long-term home equity. It is designed for educational and informational use only.
FAQs
Does This Calculator Provide an Exact Reverse Mortgage Payoff Amount?
No. It provides an estimate based on the assumptions you enter and does not include all lender-specific costs or program rules.
Does the Calculator Account for Home Appreciation?
Yes. You can enter an annual home value increase rate to estimate how property value may change over time.
Can Monthly Draws Increase Over Time?
Yes. The calculator includes a draw increase rate so you can model annual increases in monthly withdrawals.
Resources
For official information about Home Equity Conversion Mortgages (HECMs) and reverse mortgage counseling, review:
- U.S. Department of Housing and Urban Development (HUD) – Home Equity Conversion Mortgages
- Consumer Financial Protection Bureau (CFPB) – Reverse Mortgages
- HUD-Approved Housing Counseling
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