Free reverse mortgage calculator
Estimate the available principal limit on a HECM reverse mortgage — enter home value, age, and expected rate to see borrowing capacity, updated live, as you type.
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This is an estimate only. Actual reverse mortgage amounts depend on FHA MCA limits, appraisal, and HUD guidelines. Consult an HUD-approved counselor before proceeding.
Results are estimates. Consult a professional.
How the reverse mortgage calculator works
Most reverse mortgages in the United States are Home Equity Conversion Mortgages (HECMs), insured by the Federal Housing Administration. The amount you can borrow — called the principal limit — is determined by three variables: your home's appraised value (capped at the HECM lending limit set by HUD), your age (or the younger spouse's age on a joint application), and the expected interest rate. HUD publishes a Principal Limit Factor (PLF) table that maps age and rate to a percentage of the home's value.
Worked example: $400,000 home, age 72, 6.5% expected rate
Margaret is 72 years old and owns her home free and clear, appraised at $400,000. She wants to know roughly how much a HECM reverse mortgage would make available. The lender quotes an expected interest rate of 6.5%, which HUD uses to look up the applicable PLF.
Estimated principal limits by home value and borrower age
The table below shows estimated principal limits at a 6.5% expected interest rate. Older borrowers receive a higher PLF — more equity access — because the loan is expected to run for fewer years. Actual limits require a formal HECM counseling session and lender quote.
| Borrower Age | $300,000 Home | $400,000 Home | $500,000 Home | $600,000 Home |
|---|---|---|---|---|
| Age 62 | $120,000 | $160,000 | $200,000 | $240,000 |
| Age 70 | $144,000 | $192,000 | $240,000 | $288,000 |
| Age 75 | $165,000 | $220,000 | $275,000 | $330,000 |
| Age 80 | $186,000 | $248,000 | $310,000 | $372,000 |
Estimates based on approximate PLFs of 0.40 / 0.48 / 0.55 / 0.62 at ages 62 / 70 / 75 / 80 and an expected rate of 6.5%. PLFs change when expected rates change. Source: HUD HECM PLF tables (illustrative).
The 2024 HECM lending limit is $1,149,825. Homes worth more than this limit are capped at the lending limit for principal-limit calculation purposes, so a $1.5M home and a $1.15M home produce nearly identical principal limits.
Tips for evaluating a reverse mortgage
A reverse mortgage can be a powerful retirement tool or a costly mistake, depending on how and when you use it. These five considerations belong in every evaluation.
- HECM counseling is required — and valuable — HUD mandates that every HECM applicant complete an independent counseling session with an approved agency before applying. This is not just a formality; counselors explain costs, alternatives, and long-term implications that lenders may not volunteer. Sessions typically cost $125–$200.
- A line of credit grows over time — If you draw a HECM as a line of credit rather than a lump sum, the unused portion grows at the same rate as the loan accrual rate. Establishing the line of credit early — even if you do not draw it — lets the available credit grow larger as a buffer for future expenses.
- You still owe property taxes and insurance — A reverse mortgage does not eliminate housing costs. Failure to pay property taxes, homeowners insurance, and maintain the home in good condition can trigger default and foreclosure even on a reverse mortgage.
- Compare alternatives first — A HELOC, cash-out refinance, or downsizing may provide access to equity with lower costs. HECMs have substantial upfront fees (2% upfront MIP plus closing costs); run the comparison if you need funds for a specific, short-term purpose.
- Understand the impact on heirs — When the last borrower moves out permanently or dies, the loan becomes due. Heirs typically have 6–12 months to repay the balance (by refinancing or selling), keep the home, or walk away. A non-borrowing spouse who is on title but not on the loan faces different protections under rules that changed in 2014.
Accuracy and limitations
Principal limit estimates depend on PLF tables published by HUD, which are updated when expected interest rate assumptions change. The figures in this calculator use approximate PLF values at 6.5% expected rate for illustration; your actual principal limit requires a formal lender quote based on current published tables, a certified appraisal, and your exact age at closing. Costs including upfront mortgage insurance premium (2% of lending limit), ongoing annual MIP (0.5% of outstanding balance), origination fees, and closing costs will reduce the net amount you receive.
Not financial advice — consult a financial professional for your specific situation.
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