Interactive guide · Mortgage & Property

How to Calculate Reverse Mortgage

Available proceeds, accruing balance and what is left for heirs.

Open as a plain tool

The formula

How this number is built

principal limit = min(value, lending limit) × principal limit factor · balance compounds at rate + insurance premium

Step by step

Calculating it yourself

Step 1

Confirm eligibility: age, primary residence, and sufficient equity.

Step 2

Note that any existing mortgage must be repaid from the proceeds first.

Step 3

Compare the upfront costs against a home equity line or downsizing.

Step 4

Model the balance over your realistic time in the home to see what remains for heirs.

Questions

What people ask next

Can I lose the house?

Yes, if you stop paying property tax, insurance, or fail to maintain it as your primary residence.

What do heirs inherit?

Whatever equity remains after the balance is repaid. They can repay the loan and keep the home, or sell it.

Search intent

Searches this page answers

Related search	Goes to
reverse mortgage calculator	Reverse Mortgage Calculator
hecm loan	Reverse Mortgage Calculator
reverse mortgage pros and cons	Reverse Mortgage Calculator

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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.