Reverse Mortgage Calculator

Why Choose Our Reverse Mortgage Calculator?

When you’re looking for a reverse mortgage calculator, you deserve straightforward answers in real time and not vague estimates.  Most online calculators only give you a rough idea and leave out the most important details: rates, APR, and closing costs.

All Reverse Mortgage Calculator, powered by ARLO™, is different.  It’s the only calculator that delivers accurate and detailed results based on your age, home value, and location.

Here’s what sets it apart:

• Real-Time Interest Rates & APR – Updated daily with fixed and adjustable options.
• Location-Specific Closing Costs – Accurate taxes and fees for your ZIP code.
• AI-Powered Loan Matching – Instantly shows the program that best fits your goals.
• Side-by-Side Comparisons – Review HECM, jumbo, and proprietary loans together.
• Amortization Tracking – See how your balance and equity might change year by year.

Unlike others, our calculator is private, fast, and free.  It requires no personal information and gives you an instant quote in seconds.

How to Use the Calculator (Step-by-Step)

• Enter Your ZIP Code – ARLO™ checks local lending limits and state specific fees.
• Confirm Your Home Value – Uses online property value data with the ability to manually adjust higher or lower if necessary.
• Add Age & Mortgage Balance – Essential to calculate your potential loan amount and available proceeds.

For eligibility details, see our HECM guide.

Compare Reverse Mortgage Options — Side by Side

Our calculator doesn’t just give you one number.  It shows you different scenarios so you can decide what works best for your retirement goals.

Max Cash Out (Highest Payout)

This option allows you to receive more cash over time than any other reverse mortgage product available.  It’s designed to maximize the amount of money you can access overall.

Best for: If your primary goal is to maximize the amount of money you can receive from your reverse mortgage, this is likely the best option for you.

 

Grow Equity Over Time (Lower Interest)

If your goal is to preserve as much equity in your home as possible, while still having a safety net for emergencies, this option may be the right fit.  With this plan, the loan balance grows more slowly than other reverse mortgage options, helping you preserve more of your home’s equity over time.

You can review the amortization schedule to see how this option works to preserve equity year after year.  It’s a wise choice for homeowners who want peace of mind knowing they’re borrowing conservatively.

Best for: Homeowners who want access to funds but value leaving more equity for later.

 

Lowest Upfront Costs

If your main priority is to minimize financed closing costs, this option may be the best fit for you.  It’s designed for homeowners who are more interested in minimizing expenses than in getting the maximum loan amount. Most fees and costs are financed in the loan itself, so you have little out-of-pocket expenses. Best for: Homeowners with a shorter-term outlook who want to limit financed closing costs.  

Fixed-Rate Lump Sum Option

This is a fixed-rate reverse mortgage, which means your interest rate will remain unchanged once the loan is closed.  If locking in a stable, unchanging rate is your top priority, this could be the right option for you.  With a Fixed Rate loan, you’ll receive your funds as a one-time lump sum payment.  There is no credit line or monthly payments available with this option. Keep in mind your specific circumstances because a Fixed-Rate loan will not offer the same flexibility as an adjustable-rate option.  It’s a good idea to compare the available proceeds from both choices before deciding what’s best for you. Best for: Homeowners seeking stability and predictability.

Not sure which path fits your needs? Review our reverse mortgage pros and cons.

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Frequently Asked Questions

Q.

How does a reverse mortgage calculator work?

A reverse mortgage calculator takes the key data points of a prospective borrower’s scenario (Age, Home Value, Amount Owed, Current Rates, etc.) to determine how much money they can receive based on the HUD Principal Limit Factors.

Q.

Are all reverse mortgage calculators the same?

No, all reverse mortgage calculators are not the same.  They will all perform the standard calculations to determine a potential borrower’s eligibility based on the company’s offered rates, but that is where the similarities end.  Lenders do not always offer the same interest rates, and the better the interest rate offered to the borrower, the more money they are going to be eligible for.  Additionally, there will be variances in the level of detail provided by the calculator, and some calculators are easier to understand than others.

Q.

How much money do you get on a reverse mortgage?

The amount of money that you ultimately get on a reverse mortgage loan will be dependent on multiple factors.  The key factors are: 1. The current value of your home.  The higher the value of your home, the larger your loan amount will be. 2. The age of the youngest borrower or spouse.  The older you are, the higher the loan amount will be. 3. Current interest rates.  The lower the rate on the reverse mortgage, the higher the loan amount will be. 4. Amount owed on the home.  The less you owe on your home, the more proceeds you will have available.

Q.

How do interest rates affect the reverse mortgage calculation?

Interest rates play a vital role in many aspects of the reverse mortgage calculations.  There are two key interest rates to look at on the reverse mortgage.  The Expected Interest Rate (Lender’s Margin + 10-year CMT Index) is the rate that affects the initial Loan to Value calculation, as well as the other calculations for monthly payment plans, and for any tax and insurance set aside.  The lower the expected rate, the higher the loan-to-value that you can borrow.  The Initial Interest Rate (Lender’s Margin + 1-year CMT index) is the rate that affects the interest accrual on the loan as well as the line of credit growth rate.

Q.

How is the line of credit growth rate calculated?

The line of credit growth rate is calculated by adding the Mortgage Insurance Renewal Rate to the Actual loan interest rate.  As of September 2025, the Mortgage Insurance Renewal Rate is 0.50%.  If, for example, your current loan rate is 5.50%, then your line of credit growth rate would currently be 6.00%.  The actual interest rate on the loan can vary either month to month or year to year.  The Mortgage Insurance Renewal Rate is set in stone once the reverse mortgage loan is closed.

Q.

How is the monthly tenure payment calculated?

The maximum monthly tenure payment a borrower could be eligible for is calculated by using a financial calculator.  It must factor in the Expected Interest Rate, the net Principal Limit (available proceeds to the borrower), and the length of time until the youngest borrower reaches the age of 100.  Sample Scenario: A 70-year-old borrower with a $500,000 home value in California, expecting a 6.125% rate, and no existing mortgages or liens (free and clear).  This hypothetical scenario would result in a Net Principal Limit of $185,497.57 and would result in a max tenure payment $1,181.24. Whenever a borrower opts for a tenure payment, the payments do not stop for as long as the borrower is living in the property and the loan is in good standing.

Q.

How is a monthly term payment calculated?

A term payment under a reverse mortgage is a monthly payout chosen for a fixed period of time, unlike a tenure payment, which continues for life as long as you live in the home as your primary residence and keep up with property taxes and insurance.  Borrowers often choose the term option when they want extra income for a set number of years.  For example, to bridge the gap until Social Security or a pension begins.  The monthly term payment amount is calculated using a financial calculator and depends on the expected interest rate, the net Principal Limit (available loan proceeds), and the length of the term selected.  The shorter the timeframe, the larger the monthly payment; conversely, a longer term reduces the monthly payment.  Importantly, a term payment cannot extend beyond the borrower’s 100th birthday.  If it does, the system defaults to a lifetime tenure payment.  In short, a term payment is best for borrowers who want larger payments for a limited period, while a tenure payment is designed for those who prefer a steady income for life.

Q.

What is the 60% rule for a reverse mortgage?

The 60% rule that is often cited on reverse mortgages pertains to the initial disbursement limit.  The overwhelming majority of reverse mortgage loans are originated under the HECM (Home Equity Conversion Mortgage) program that is insured by HUD (Department of Housing and Urban Development).  The HUD rules limit borrowers to advancing 60% of the total Principal Limit (Loan Amount) either at the time of closing or during the first year the loan is in place.  The exception to this rule is if the “Mandatory Obligations” are at 50.01% or higher of the Principal Limit.  Mandatory obligations include all closing costs and any existing lien(s) against the property that must be paid at the time of closing.  When the mandatory obligations exceed that threshold, a borrower is permitted to advance an additional 10% of the Principal Limit (if available) above the mandatory obligations.  For example, if the Principal Limit is $200,000 and the total mandatory obligations are $150,000, the borrower would be able to advance an additional $20,000 either at the time of closing or during the first year the loan is in place.

Q.

How much can a 70-year-old borrow on a reverse mortgage?

The amount a 70-year-old can borrow will depend on their home value and the current interest rates.  HUD publishes a Principal Limit Factors table that outlines the recommended loan-to-value ratios for each age at every expected interest rate.  Every 1/8^th (0.125%) change to the expected interest rate will change the loan-to-value.  The best-case scenario for a 70-year-old borrower would be a 57.6% loan-to-value ratio, which would require an expected interest rate of 3% or lower.  3% is the absolute floor for the calculations.  On the flip side, the table goes all the way up to 18% and at an 18% expected rate, a 70-year-old borrower could get a 11.3% loan-to-value.  As of September 2025, expected interest rates tend to range from 5.75% – 6.25%.  At a 6.00% expected rate, a 70-year-old could borrow 41.5% loan-to-value.