Home / Calculators / Reverse Mortgage

Reverse Mortgage Calculator

See how a reverse mortgage balance grows over time, and how much home equity you'd realistically have left in 5, 10, 15, 20, or 25 years.

📉 Balance growth 🏠 Equity projection 🛡️ Non-recourse aware

What this calculator does — and doesn't do: This tool projects how your loan balance and home equity would change over time if you have (or are considering) a specific reverse mortgage balance. It does not estimate how much you'd initially qualify to borrow — that figure comes from HUD-published age-based tables that only a HUD-approved lender or counselor can calculate exactly for your situation.

🏠
Your home & loan
$
$
Use a real quote from a lender, or a hypothetical amount to explore how the numbers work.
📈
Rate & appreciation assumptions
Current HECM rates have run roughly 6.5%–7.75% in 2026 for variable-rate loans — check current rates with a lender for your exact quote.
💡 The annual FHA mortgage insurance premium (0.5% of the balance) is automatically included in the balance growth — this rate is fixed by FHA and isn't adjustable.
Projected at year 10
—
Loan balance
—
Remaining equity
—
Balance reaches home value
—
📊
Balance & equity over 25 years
YearLoan balanceHome valueYour equity

Disclaimer: This calculator projects loan balance and home equity based on the assumptions you enter — it is not a loan quote and does not estimate your initial borrowing amount, which depends on HUD age-based tables. Actual interest rates, mortgage insurance costs, and home value changes will vary. HUD-approved counseling is required before closing on a HECM reverse mortgage. For informational purposes only — not financial or lending advice. Consult a HUD-approved counselor or reverse mortgage lender for guidance specific to your situation.

📖
How to use this calculator
1
Enter your home value and a loan balance to project
If you've already gotten a lender quote, use that starting balance for the most accurate picture.
2
Adjust the interest rate to match current quotes
HECM rates are variable and change with the market — use a current rate from a lender for the most realistic projection.
3
Check the year your balance reaches your home's value
This is the point where the non-recourse FHA protection actually starts covering the gap — useful context for estate planning conversations with heirs.
❓
FAQs
Unlike a traditional mortgage, you're not making monthly payments toward a reverse mortgage. Instead, interest and the annual FHA mortgage insurance premium (0.5% of the balance) accrue and are added to the loan balance every month, so what you owe grows over time rather than shrinking.
No. FHA-insured HECM reverse mortgages include a non-recourse feature: you or your heirs will never owe more than the home's value when the loan becomes due, even if the loan balance has grown larger than the home is worth. FHA insurance covers the difference.
The initial amount you can borrow (called the principal limit) is determined by HUD-published actuarial tables based on the youngest borrower's exact age and the expected interest rate, applied against the lesser of your home's appraised value or the FHA lending limit ($1,249,125 in 2026). This calculator doesn't estimate that starting amount — a HUD-approved lender or counselor can give you an exact figure for your situation.
Yes. HUD-approved counseling is mandatory before closing on a HECM reverse mortgage. The session covers how the loan works, alternatives, total costs, and your rights and responsibilities as a borrower.
The loan becomes due. Heirs typically have the option to repay the balance and keep the home (often by selling or refinancing), or let the lender sell the home to satisfy the debt. Because of the non-recourse feature, heirs are never required to pay more than the home's value, even if the loan balance is higher.
📋 Quick facts (2026)
Minimum age (HECM)
62
Annual MIP
0.5% of balance
FHA lending limit
$1,249,125
🎯
Comparing this to a regular home loan? See our mortgage calculator for standard forward-mortgage payments.

Related guides:

How This Calculator Works

This calculator projects how a reverse mortgage loan balance compounds over time. Each month, your expected interest rate plus the fixed 0.5% annual FHA mortgage insurance premium are applied to the outstanding balance, and the result is added back to what you owe — the same way the balance actually accrues on a real HECM loan. Your home's value is projected forward separately at your chosen appreciation rate, and remaining equity is simply the difference between the two, floored at zero to reflect the FHA non-recourse guarantee.

Why This Tool Doesn't Estimate Your Initial Loan Amount

How much you can initially borrow on a HECM — called the principal limit — is set by HUD using detailed actuarial tables based on the exact age (in months) of the youngest borrower and the expected interest rate at closing. These tables aren't published in a simple formula, and reproducing an approximation risks giving you a misleading number for what is, for most people, one of the largest financial decisions of retirement. A HUD-approved reverse mortgage counselor or lender can calculate your exact principal limit — this calculator instead focuses on what happens after you have a balance, which is math we can calculate precisely and transparently.

The Non-Recourse Feature, Explained

The table above will often show your projected loan balance eventually exceeding your projected home value — this isn't a sign the loan "fails," it's the point where FHA mortgage insurance actually earns its cost. Because HECM loans are non-recourse, once the balance crosses the home's value, FHA insurance covers the difference when the loan comes due, and neither you nor your heirs are ever responsible for more than the home is worth.