Reverse Mortgage Loan Calculator

Reverse Mortgage Eligibility and Payment Estimator

Input Fields

Property Value

$

Enter the current value of your property

LTV Ratio

%

Loan-to-Value ratio allowed by lender

Disbursement Period

years

Loan disbursement period in years

Disbursement Frequency

One TimeYearlyHalf-YearlyQuarterlyMonthly

Interest Rate

%

Enter the annual interest rate

CalculateReset

Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Installment Amount

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Reverse Mortgage Loan Formulas

\[ \text{Loan Amount} = \text{Property Value} \times \frac{\text{LTV}}{100} \] \[ \text{Installment} = \frac{L \times r}{1 – (1 + r)^{-n}} \]

Where:

• $$Property Value$$ = Market value of the home
• $$LTV$$ = Loan-to-Value ratio allowed by lender (in %)
• $$L$$ = Loan amount calculated from LTV
• $$r$$ = Monthly interest rate
• $$n$$ = Number of monthly payouts
• $$Installment$$ = Monthly reverse mortgage payment (if structured)

Reverse Mortgage – Calculation Example

Let’s assume:

• Property value = $300,000
• LTV = 55%
• Interest rate = 6% annually → 0.005 monthly
• Term = 15 years → 180 months

Calculation:

1. $$\text{Loan Amount} = 300,000 \times \frac{55}{100} = 165,000$$
2. $$\text{Installment} = \frac{165,000 \times 0.005}{1 – (1 + 0.005)^{-180}} \approx 1,390.87$$

You would receive $1,390.87 per month for 15 years.

A reverse mortgage allows senior homeowners to borrow against the value of their home without selling it. This calculator estimates the maximum loan amount based on property value and LTV, and also shows the possible monthly payout based on interest rate and payment period. Useful for retirement planning and financial decision-making in later years.