Buying and selling property
Reverse Mortgage Calculator
Project a reverse mortgage year by year: the loan as interest compounds, the value of the home, and the equity left.
- Cost
- Free
- Your figures
- Stay in your browser
- Rates checked
- 22 October 2026
A typical maximum at 70 is 25% to 30% of the home's value, $225,000 to $270,000.
Establishment and valuation fees, added to the loan at the start.
Reverse mortgage rates are usually higher than standard home loan rates.
Moneysmart's calculator assumes 3% a year. Try a lower rate as well.
Loan balance at 85
$284,895
Up from $100,000 today. Interest is added to the loan each month, so it compounds.
- Home value at 85
- $1,402,171
- Equity left at 85
- $1,117,276
- Loan to value ratio at 85
- 20.3%
- Equity would reach zero at
- Not before 95
Reverse mortgages taken out from 18 September 2012 have statutory negative equity protection: you cannot owe more than the home's market value when it is sold.
Estimate only, based on the figures entered and the assumptions listed below. It is not a quote, an offer of credit or personal advice.
Your home and the loan by age
The home's value and the loan balance at each birthday to 95, if the rates entered hold. The gap between the lines is your equity.
- Home value
- Loan balance
Home value ends at $1,884,400. Loan balance ends at $572,542.
Show the figures as a tableHide the table
| Point | Home value | Loan balance |
|---|---|---|
| Age 70 | $900,000 | $100,000 |
| Age 71 | $927,000 | $107,229 |
| Age 72 | $954,810 | $114,981 |
| Age 73 | $983,454 | $123,293 |
| Age 74 | $1,012,958 | $132,205 |
| Age 75 | $1,043,347 | $141,763 |
| Age 76 | $1,074,647 | $152,011 |
| Age 77 | $1,106,886 | $162,999 |
| Age 78 | $1,140,093 | $174,783 |
| Age 79 | $1,174,296 | $187,418 |
| Age 80 | $1,209,525 | $200,966 |
| Age 81 | $1,245,810 | $215,494 |
| Age 82 | $1,283,185 | $231,072 |
| Age 83 | $1,321,680 | $247,776 |
| Age 84 | $1,361,331 | $265,688 |
| Age 85 | $1,402,171 | $284,895 |
| Age 86 | $1,444,236 | $305,490 |
| Age 87 | $1,487,563 | $327,574 |
| Age 88 | $1,532,190 | $351,254 |
| Age 89 | $1,578,155 | $376,646 |
| Age 90 | $1,625,500 | $403,874 |
| Age 91 | $1,674,265 | $433,070 |
| Age 92 | $1,724,493 | $464,377 |
| Age 93 | $1,776,228 | $497,946 |
| Age 94 | $1,829,515 | $533,943 |
| Age 95 | $1,884,400 | $572,542 |
How this calculator works
A reverse mortgage lets older homeowners borrow against their home without regular repayments. Interest is added to the loan each month, so the debt grows faster over time.
The projection shows the loan and the home's value side by side, so you can see how much equity is left at each age.
Assumptions
- Interest compounds monthly and is added to the loan, along with any monthly fee and regular drawdown.
- The home's value grows by the rate entered each year, rising a little each month.
- The maximum loan is a typical age-based guide. Each lender sets its own limits.
- Statutory negative equity protection means you cannot owe more than the home is worth when it is sold.
Government rates, thresholds and fees were checked against official sources on 22 October 2026. They change, so confirm them before you rely on a figure.
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