Reverse Mortgage Calculator
Estimate your HECM reverse mortgage payout, net available cash, monthly income options, upfront costs, and balance growth.
How a Reverse Mortgage Works
A reverse mortgage, officially called a Home Equity Conversion Mortgage or HECM, is an FHA-insured loan that allows homeowners age 62 or older to convert part of their home equity into cash. Unlike a traditional mortgage, you do not make required monthly principal-and-interest payments to the lender. The loan is generally repaid when the home is sold, the last borrower moves out, or the borrower passes away. If you first want to estimate how much equity you have, start with our home equity calculator.
How much you can get from a reverse mortgage depends mainly on your age, your home's appraised value, your existing mortgage balance, and the expected interest rate. Older borrowers typically qualify for a higher principal limit, while higher expected rates reduce the amount available. For 2026, FHA caps the HECM maximum claim amount at $1,249,125, so values above that amount do not increase the insured borrowing base.
A reverse mortgage calculator is useful because payout options can look very different depending on how you plan to use the loan. Some borrowers prefer a lump sum, others want fixed monthly payments for a set term, and others care more about lifetime tenure income or line-of-credit growth. This calculator estimates the principal limit, net proceeds after upfront costs, and payment options so you can compare those outcomes in one place.
Upfront costs usually include the FHA upfront mortgage insurance premium, lender origination fees, and other closing costs such as appraisal, title, and recording fees. Ongoing interest and annual MIP are added to the loan balance over time, so the balance generally grows instead of shrinking. That is why a long-term projection matters: it shows how a reverse mortgage can affect remaining equity later in retirement.
You still own your home with a HECM, but you must continue paying property taxes, homeowner's insurance, and maintenance costs. If those obligations are not met, the loan can go into default. Because a HECM is a non-recourse loan, neither you nor your heirs owe more than the home's value when the loan becomes due, but less equity may remain for future inheritance. It is worth comparing this option with a traditional mortgage calculator before choosing a path.
Reverse Mortgage Payout Examples
These examples show how age, home value, and existing mortgage balance can change a HECM reverse mortgage estimate. They use the calculator's default 5.5% expected rate and rounded results, so use the calculator above for your own exact inputs.
| Age | Home value | Mortgage balance | Estimated net cash | Estimated tenure payment |
|---|---|---|---|---|
| 62 | $400,000 | $0 | $151,288 | $843/mo |
| 70 | $400,000 | $0 | $179,316 | $1,075/mo |
| 75 | $600,000 | $100,000 | $198,800 | $1,281/mo |
What People Usually Want to Know
How much money can I get from a reverse mortgage?
The estimate depends on the youngest borrower's age, home appraised value, existing mortgage balance, and expected interest rate. Older borrowers, more home equity, and lower expected rates usually increase the available HECM payout.
Can I use a reverse mortgage to buy a home?
A HECM for Purchase can be used to buy a primary residence if you meet FHA age, occupancy, down payment, and property requirements. This calculator is focused on estimating proceeds from a home you already own.
Why is the net cash lower than the principal limit?
The principal limit is reduced by upfront mortgage insurance, origination fees, closing costs, and any existing mortgage payoff. The calculator shows both the principal limit and the net amount available after those deductions.
What is the difference between HECM and proprietary reverse mortgages?
A HECM is FHA-insured and follows FHA program limits. Proprietary or jumbo reverse mortgages are private products that may support higher-value homes, but their rates, fees, and protections vary by lender.