Reverse Mortgage Calculator

Estimate reverse mortgage proceeds for homeowners 62+ based on home value and age.

By Konstantin Iakovlev · Updated September 2026 · Source: HUD Mortgagee Letter 2025-22 — 2026 HECM maximum claim amount

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Approx. Loan Proceeds

$167,400.00

Equity Remaining

$232,600.00

Reverse Mortgage Estimate

Borrower Age70
Principal Limit Factor41.85%
Available Proceeds$167,400.00
Remaining Home Equity$232,600.00

Use the Reverse Mortgage Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Homeowners aged 62 and older can use a reverse mortgage to convert part of their equity into cash, and an early estimate of the proceeds helps frame the rest of a retirement plan. The figures follow the structure of the HECM (Home Equity Conversion Mortgage) program, sizing available funds from your home's value, your age and the expected interest rate; the principal limit factor used here is an approximation of HUD's tables, not a lender quote.

The starting point is the Maximum Claim Amount (MCA), set at the lower of the appraised value or the 2026 HECM limit of $1,249,125. That MCA is multiplied by the Principal Limit Factor (PLF), which is keyed to the youngest borrower's age and the expected interest rate (EIR) — usually a 10-year CMT index plus a margin — to arrive at the initial principal limit.

What the tool reports is a gross figure, before closing costs, origination fees, and the mandatory mortgage insurance premiums come out. It also leaves out an obligation borrowers sometimes forget: property taxes and homeowner's insurance remain yours to pay, and falling behind on them can push the loan into default.

Example: Eleanor's Reverse Mortgage Estimate

  1. 1 Eleanor, aged 70, owns a home valued at $650,000, and the expected interest rate is 6.00%. The calculator's approximate Principal Limit Factor for that age and rate is 41.6%.
  2. 2 First, the Maximum Claim Amount (MCA): $650,000, the appraised value, since it is below the 2026 HECM limit of $1,249,125. Then the MCA times the PLF: $650,000 × 0.416.
  3. 3 This yields an initial principal limit of about $270,400, the most Eleanor could borrow before closing costs and the upfront mortgage insurance premium.
  4. 4 The upfront premium alone is 2% of the MCA ($13,000); with other closing costs of, say, $6,000, her net proceeds would be about $251,400. A lender's quote uses HUD's exact factor tables and may differ.

Source: HUD Mortgagee Letter 2025-22 — 2026 HECM maximum claim amount · Last updated: September 2026

Frequently Asked Questions

How does a reverse mortgage work?
A reverse mortgage lets homeowners 62+ convert home equity into cash without monthly mortgage payments. You receive funds as a lump sum, line of credit, or monthly payments. The loan balance grows over time and is repaid when you sell, move out, or pass away.
How much can I get from a reverse mortgage?
The amount depends on your age, home value, and current interest rates. Generally, you can access 40-60% of your home's appraised value. Older borrowers and higher-value homes qualify for more. The 2026 HECM lending limit caps the home value used at $1,249,125.
What are the downsides of a reverse mortgage?
High closing costs (2-5% of home value), growing loan balance that reduces heirs' inheritance, mortgage insurance premiums, and the requirement to maintain the home and pay property taxes and insurance. If you fail to maintain the home or pay taxes, the loan can become due.

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