Reverse Mortgage Calculator
A reverse mortgage lets homeowners aged 62 and over turn home equity into cash without monthly mortgage payments. This HECM calculator estimates how much you could borrow — the principal limit, what is left after paying off an existing mortgage and upfront costs, and what each payout option pays.
How much can I get from a reverse mortgage?
Reverse mortgage (HECM): A reverse mortgage (a Home Equity Conversion Mortgage, or HECM) lets homeowners aged 62 and over borrow against their home equity without monthly payments; the loan is repaid when the borrower moves out, sells, or dies. A 70-year-old with a $400,000 home, a 6% expected rate, no existing mortgage and $15,000 of upfront costs has a principal limit of about $193,600 and about $178,600 net available. The first-year cap limits the lump sum to about $116,160; tenure is roughly $947.98 a month. Source: HUD — HECM Program.
How to estimate a reverse mortgage payout
- Take the smaller of your home value and the FHA HECM lending limit ($1,249,125 for 2026) as the maximum claim amount.
- Multiply the claim amount by the principal limit factor, set by age and expected rate.
- Subtract the existing mortgage balance and the upfront costs from the principal limit to get the net available.
- Apply the first-year cap — the larger of 60% of the limit and mandatory obligations plus 10% — for the most available at closing.
Source: HUD — HECM Program · CFPB — Reverse Mortgages
Payout options
Tenure and term divide the net available by the payout period; a lender's quote will differ.
How this reverse mortgage calculator works
Enter your home's value, the youngest borrower's age, the expected rate, any existing mortgage balance, the upfront costs, and the FHA lending limit (2026 limit: $1,249,125). The calculator works out the maximum claim amount — your home value, capped at the FHA limit — then applies the principal limit factor (PLF) from HUD's tables, driven by age and rate, to get the principal limit. Subtract the mortgage and upfront costs, and what remains is the net available. It runs entirely in your browser: no personal information is collected.
One warning: the PLF figures here approximate HUD's published tables — about 0.40 at 62, 0.466 at 70 and 0.552 at 80 at 7%, falling roughly 0.018 per point of rate. Only a lender can give you the binding figure, and a HECM requires HUD-approved counseling before closing.
The reverse mortgage formula
Principal Limit = MCA × Principal Limit Factor (PLF)
Net Available = Principal Limit − existing mortgage − upfront costs
First-year cap = max(60% × Principal Limit, mandatory obligations + 10% × Principal Limit)
The PLF rises with the borrower's age and falls as the expected rate rises. The first-year cap is a HUD rule: in year one you can draw at most 60% of the principal limit, or mandatory obligations plus 10% if higher.
Worked example
A 70-year-old owns a $400,000 home outright, with a 6% expected rate and $15,000 of upfront costs; the maximum claim amount is $400,000. The PLF at 70 is about 0.466 at 7%, plus about 0.018 per point the rate falls — so about 0.484 at 6%. The principal limit is $400,000 × 0.484 = $193,600, and after the $15,000 of upfront costs the net available is $178,600. The first-year cap is the larger of 60% of $193,600 ($116,160) and mandatory obligations plus 10% ($34,360) — so $116,160 at closing. As a tenure payment for life, $178,600 over about 15.7 years of average remaining life is roughly $947.98 a month; as a 10-year term payment, $1,488.33 a month; as a line of credit, the full $178,600. (Source: HUD — HECM program.)
Payout options compared
- Lump sum. All the money at closing — fixed-rate HECM only, capped by the first-year limit.
- Tenure. Equal monthly payments while you live in the home — the smallest monthly amount.
- Term. Equal monthly payments for a fixed number of years (10 years here). Higher than tenure, but they stop.
- Line of credit. Draw only what you need, paying interest only on what you draw. Unused credit grows over time.
What sets your principal limit
- Age. The youngest borrower's age counts: the PLF rises roughly 0.008 a year in the 70–80 band.
- Expected interest rate. A lower rate means a higher PLF — about 0.018 per point. The rate is set at closing, so timing matters.
- Home value — up to the FHA limit. Value above the $1,249,125 limit adds nothing — a proprietary reverse mortgage suits higher-value homes.
- Existing mortgage and upfront costs. Both come straight off the principal limit, including the 2% upfront premium and an origination fee capped at $6,000.
Before you borrow: counseling, costs and heirs
Federal rules require counseling from a HUD-approved counselor before a HECM can close — do not decide from a calculator alone. Costs are front-loaded: the 2% upfront premium, the origination fee, closing costs, and a 0.5% annual premium, on top of compounding interest. You keep the title, but you must live there, pay taxes and insurance, and maintain the property. When the last borrower dies, moves out or sells, the loan is repaid; heirs can repay and keep the house, and FHA insurance covers any shortfall — the debt is non-recourse.
Frequently asked questions
How much can I borrow with a reverse mortgage?
It depends on your age, home value (capped at the $1,249,125 FHA limit for 2026) and expected rate. A 70-year-old with a $400,000 home at 6%, no mortgage and $15,000 of costs has about $193,600 of principal limit and $178,600 net — though only $116,160 can be taken as a lump sum in year one.
Do I need to be 62 to get a reverse mortgage?
Yes — for a HECM, the youngest borrower must be at least 62, the home must be your primary residence, and HUD-approved counseling is required before closing.
Do I still own my home with a reverse mortgage?
Yes — you keep the title. The lender places a lien on it, and you must keep living there, pay taxes and insurance, and maintain the property. The loan becomes due when the last borrower dies, sells, or moves out permanently.
What is the 2026 HECM lending limit?
$1,249,125, up from $1,209,750 in 2025. Your maximum claim amount is your home's value or the limit, whichever is lower. The calculator's limit field is editable if the limit changes.
Will a reverse mortgage affect my Social Security or Medicare?
Generally no — proceeds are loan advances, not income, so Social Security and Medicare are unaffected. They can affect need-based benefits such as Medicaid or SSI if the money sits in your account as an asset.
Sources
- HUD — HECM Program — Eligibility, counseling, principal limit factors and non-recourse protection.
- CFPB — Reverse Mortgages — How they work, their costs, and alternatives to consider.