{"id":411,"date":"2015-06-16T10:51:58","date_gmt":"2015-06-16T08:51:58","guid":{"rendered":"http:\/\/wpcalc.com\/?p=411"},"modified":"2026-10-23T10:30:49","modified_gmt":"2026-10-23T07:30:49","slug":"reverse-mortgage-loan","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/reverse-mortgage-loan\/","title":{"rendered":"Reverse Mortgage Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Reverse Mortgage Eligibility and Payment Estimator<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"411\" data-favorite-title=\"Reverse Mortgage Loan\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/reverse-mortgage-loan\/\" data-favorite-excerpt=\"Estimate how much you can borrow against your home with a reverse mortgage. Enter your property value, LTV ratio, interest rate, and payout frequency to see the installment amount you could receive.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/reverse-mortgage-loan\/\" method=\"POST\" class=\"calculator\" id=\"calculator-411\" data-post=\"411\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field\" id=\"input-1\"><label for=\"field-1\">Property Value<\/label><input type=\"text\" name=\"property_value\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"5000000\"\/><div class=\"unit\" id=\"calc-unit-1\">$<\/div><small id=\"calc-info-1\">Enter the current value of your property<\/small><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">LTV Ratio<\/label><input type=\"text\" name=\"ltv_ratio\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"60\"\/><div class=\"unit\" id=\"calc-unit-2\">%<\/div><small id=\"calc-info-2\">Loan-to-Value ratio allowed by lender<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">Disbursement Period<\/label><input type=\"text\" name=\"disbursement_period\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" value=\"15\"\/><div class=\"unit\" id=\"calc-unit-3\">years<\/div><small id=\"calc-info-3\">Loan disbursement period in years<\/small><\/div><div class=\"field\" id=\"input-4\"><label for=\"field-4\">Disbursement Frequency<\/label><div class=\"grid grid-cols-1\"><select id=\"field-4\" name=\"disbursement_frequency\"><option value=\"1\">One Time<\/option><option value=\"2\">Yearly<\/option><option value=\"3\">Half-Yearly<\/option><option value=\"4\">Quarterly<\/option><option value=\"5\">Monthly<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-5\"><label for=\"field-5\">Interest Rate<\/label><input type=\"text\" name=\"interest_rate\" id=\"field-5\" aria-describedby=\"calc-unit-5 calc-info-5\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"8\"\/><div class=\"unit\" id=\"calc-unit-5\">%<\/div><small id=\"calc-info-5\">Enter the annual interest rate<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"411\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Installment Amount<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"411\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">1<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Reverse Mortgage Loan Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ \\text{Loan Amount} = \\text{Property Value} \\times \\frac{\\text{LTV}}{100} \\\\ \\text{Installment} = \\frac{L \\times r}{1 - (1 + r)^{-n}} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(\\text{Property Value}\\) \u2014 current market value of the home<\/li>\n<li>\\(\\text{LTV}\\) \u2014 Loan-to-Value ratio allowed by the lender, in %<\/li>\n<li>\\(L\\) \u2014 loan amount (Property Value \u00d7 LTV)<\/li>\n<li>\\(r\\) \u2014 periodic interest rate (annual rate \u00f7 number of disbursements per year)<\/li>\n<li>\\(n\\) \u2014 total number of disbursements (years \u00d7 disbursements per year)<\/li>\n<\/ul>\n<p>The first formula caps the total loan by the lender's Loan-to-Value limit. The second converts that amount into equal periodic payouts using the standard annuity payment formula.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Reverse Mortgage Loan \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> a home worth $5,000,000, a lender allowing an LTV ratio of 60%, an 8% annual interest rate, and a 15-year disbursement period with monthly payouts.<\/p>\n<p>\\[ L = 5{,}000{,}000 \\times \\frac{60}{100} = 3{,}000{,}000 \\]<\/p>\n<p>\\[ r = \\frac{0.08}{12} \\approx 0.006667, \\qquad n = 15 \\times 12 = 180 \\]<\/p>\n<p>\\[ \\text{Installment} = \\frac{3{,}000{,}000 \\times 0.006667}{1 - (1 + 0.006667)^{-180}} \\approx 28{,}669.56 \\]<\/p>\n<p><strong>Result:<\/strong> the borrower can access a total loan of $3,000,000, paid out as monthly installments of approximately <strong>$28,669.56<\/strong> for 15 years.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Reverse Mortgage Loan Calculator<\/h2>\n<ol>\n<li>Enter the <strong>Property Value<\/strong> \u2014 the current market value of your home.<\/li>\n<li>Enter the <strong>LTV Ratio<\/strong> \u2014 the maximum Loan-to-Value percentage your lender allows.<\/li>\n<li>Enter the <strong>Disbursement Period<\/strong> \u2014 the number of years over which the loan will be paid out to you.<\/li>\n<li>Select the <strong>Disbursement Frequency<\/strong>: One Time (the full loan amount in a single payment), Yearly, Half-Yearly, Quarterly, or Monthly.<\/li>\n<li>Enter the <strong>Interest Rate<\/strong> \u2014 the annual rate charged by the lender.<\/li>\n<li>Read the <strong>Installment Amount<\/strong> \u2014 the fixed payout you would receive at each interval (or the lump sum if you chose One Time).<\/li>\n<\/ol>\n<h2>What Is a Reverse Mortgage?<\/h2>\n<p>A reverse mortgage is a loan that allows homeowners \u2014 typically seniors \u2014 to borrow against the equity in their home without selling it and without making monthly loan payments. Instead of the borrower paying the bank, the bank pays the borrower, either as a lump sum, a line of credit, or a stream of regular installments. The loan, plus accumulated interest, is repaid when the home is sold, the borrower moves out permanently, or the estate is settled.<\/p>\n<p>The amount you can access depends primarily on two factors: the value of your home and the Loan-to-Value (LTV) ratio the lender permits. Lenders do not allow you to borrow the full value of the property \u2014 the LTV cap protects them against falling home prices, and in government-insured programs it typically increases with the borrower's age. Multiplying the property value by the LTV ratio gives the maximum loan principal.<\/p>\n<p>This calculator then converts that principal into equal periodic payouts using the annuity formula. Each installment consists partly of principal and partly of interest, so that the loan is fully amortized \u2014 the balance reaches exactly zero at the end of the disbursement period. Choosing a longer period lowers each installment but increases the total interest paid; a shorter period does the opposite. To compare this with a traditional loan where <em>you<\/em> make the payments, try our <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-payment\/\">Mortgage Payment<\/a> or <a href=\"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/\">Loan Calculator<\/a>.<\/p>\n<h2>Assumptions, Limitations, and Practical Tips<\/h2>\n<ul>\n<li><strong>Amortizing model:<\/strong> the calculator assumes a fully amortizing payout stream. Many real reverse mortgage programs (such as the US HECM) instead let interest accrue on the outstanding balance, with no scheduled installments at all; the total debt then grows over time rather than shrinking.<\/li>\n<li><strong>Constant rate and value:<\/strong> the interest rate and property value are assumed fixed for the whole period. Variable-rate loans and home price changes are not modeled.<\/li>\n<li><strong>Costs excluded:<\/strong> origination fees, closing costs, mortgage insurance premiums, and servicing fees are not included and can noticeably reduce the net amount available.<\/li>\n<li><strong>One Time disbursement:<\/strong> if you select One Time, the calculator returns the full loan amount as a single payment, with no installment schedule.<\/li>\n<li><strong>Non-recourse feature:<\/strong> most reverse mortgages are non-recourse, meaning the repayment can never exceed the home's value at the time of repayment \u2014 a protection worth confirming with your lender.<\/li>\n<\/ul>\n<p>Because eligibility rules, LTV limits, and tax treatment vary by country and program, treat the result as an estimate for planning purposes. For a broader view of your retirement finances, combine it with our <a href=\"https:\/\/wpcalc.com\/en\/finance\/retirement-planner\/\">Retirement Planner<\/a> and <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-calculator\/\">Mortgage Calculator<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Estimate how much you can borrow against your home with a reverse mortgage. Enter your property value, LTV ratio, interest rate, and payout frequency to see the installment amount you could receive.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-411","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=411"}],"version-history":[{"count":4,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/411\/revisions"}],"predecessor-version":[{"id":67471,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/411\/revisions\/67471"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}