Updated: January 23, 2026
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A reverse mortgage calculator shows how much cash you can get from your home's equity. Unlike traditional mortgages where you make monthly payments, reverse mortgages let you turn part of your home's value into money you can spend now.
MoneyGeek's reverse mortgage calculator shows you the potential loan amount. You'll need specific information about your home and situation.
INPUT | WHAT TO INPUT |
|---|---|
Home Value | Enter your home's current market value. Lenders use this to figure out how much equity you have available for a reverse mortgage. |
Existing Mortgage Balance | If you still owe money on your mortgage, the reverse mortgage pays it off first. This reduces how much cash you'll get. |
Expected Interest Rate | The interest rate determines how fast you'll use up your home equity. Lower rates mean your equity lasts longer and you qualify for more money. |
Age of the Youngest (Or Only) Borrower | Lenders use your age to estimate how long you'll live in the home. Older borrowers get larger amounts because the loan term is expected to be shorter. |
OUTPUT | WHAT OUTPUT MEANS |
|---|---|
Lump Sum | Get all your money upfront in one payment. Best for immediate needs like home repairs or paying off debt. |
Line of Credit | Draw money as needed up to your limit. Works well if you want access to cash over time for unexpected expenses. |
Monthly Payments for Life | Get steady monthly payments as long as you live in your home. Supplements retirement income and covers ongoing expenses. |
A reverse mortgage works when you need cash, have substantial home equity and plan to stay in your house for years. It doesn't work if you want to leave your home to your kids or might move soon.
Here's when reverse mortgages work (and when they don't):
Linda is a 70-year-old retired school teacher living in the suburbs of a mid-sized city. She enjoys her retirement, keeping herself occupied with gardening, book club meetings and her grandchildren. Linda wants her lifestyle and independence to continue, but her savings are low.
Linda owns her home outright and is considering tapping into its equity to supplement her pension and social security. She considers a reverse mortgage.
A reverse mortgage with monthly income payments is the best option for Linda because she needs a steady income stream to sustain her lifestyle in retirement. Owning her home outright gives Linda the chance to access its equity as supplemental income, covering essential expenses without monthly loan repayments.
Robert's 65 and just retired from civil engineering. Medical bills piled up, and he needs money for his grandchildren's college. He wants to leave his home to his kids, so a reverse mortgage worries him.
Not for Robert. He's got conflicting goals: he needs money now but wants to keep his legacy intact. A home equity loan or HELOC works better. He can access the money he needs without compromising what he'll leave his children.
Jasmine's 68, a former music teacher who still directs the local choir and fills her days with music and community service. Her family home has been passed down through the generations.
She wants to convert part of her home into a small community music studio and is thinking about using a reverse mortgage.
A reverse mortgage probably isn't the best choice for Jasmine. While a reverse mortgage gives her immediate access to equity without monthly payments, she should look at other options to keep her family legacy intact. Personal loans offer straightforward repayment and lower interest rates than credit cards if she qualifies. She might also look into grants from local community organizations. That way she keeps all her equity without taking on debt.
Some immediate steps you might consider taking after calculating your potential reverse mortgage:
Speak with a Department of Housing and Urban Development (HUD)-approved reverse mortgage counselor to get a comprehensive understanding of the reverse mortgage process. They review your options and discuss financial implications. Find a list of HUD-approved counseling agencies on the HUD website.
Gather necessary documents, such as proof of age (like a government-issued ID), proof of residence, documentation of income, your home's title and recent property tax statements, plus details about your existing mortgage and any homeowners association (HOA) fees.
Consider how the reverse mortgage fits into your long-term financial plan, especially with estate planning and any plans to leave assets to heirs. Understand how your preferred payment option fits with your budget.
If you intend to leave your home to your heirs, discuss your reverse mortgage plans with them as it may impact their inheritance by reducing home equity.
A reverse mortgage and a HELOC both let you access home equity, but work differently. A reverse mortgage provides income without repayments. A HELOC requires monthly payments. Review our comparison table for details.
Comparison Area | Reverse Mortgage | HELOC |
|---|---|---|
Age Requirement | 62+ years | None |
Repayment | No monthly repayments required | Monthly payments required |
Access to Funds | Lump sum, line of credit or monthly payments | Credit line, borrow as needed |
Impact on Home Equity | Reduces equity over time, paid upon sale or death | Reduces equity as funds are drawn |
Purpose | Supplementing retirement income | Home improvements, debt consolidation |
Interest Rates | Fixed or variable, generally higher than HELOCs | Variable rates, may increase over time |
Risk of Foreclosure | Lower, as long as property taxes and insurance are paid | Yes, if payments are missed |
A reverse mortgage is a loan for homeowners 62 and older that lets them convert part of their home equity into cash without monthly mortgage payments. The loan is repaid when the homeowner sells the house, moves out or passes away.
Reverse mortgages can be paid out as a lump sum, a line of credit, monthly payments or a combination of these options.
Enter your home value, existing mortgage balance, expected interest rate and the age of the youngest borrower. The calculator estimates the loan amount and potential payment options.
The amount depends on your home’s value, current interest rates and the age of the youngest borrower. Typically, older borrowers with higher home values can access more funds.
No, reverse mortgage payouts are not considered income and are not taxed.
Alternatives include home equity loans, home equity lines of credit (HELOCs), refinancing your mortgage or selling the home and downsizing.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
