Reverse mortgage calculator
See how the balance on a reverse mortgage can grow when no payments are made, and how much equity could be left in the home.
Mortgage rules last reviewed: September 29, 2026
Example rate — reverse mortgage rates are typically higher than regular mortgage rates
An assumption only — home values can also fall.
- Estimated home value in 10 years
- $1,218,994
- Remaining equity
- $801,364
- Balance owed as a share of home value
- 34.3%
For illustration only. Not a rate quote, approval or pre-qualification.
| Year | Balance owed | Home value | Equity |
|---|---|---|---|
| 1 | $215,281 | $1,020,000 | $804,719 |
| 2 | $231,730 | $1,040,400 | $808,670 |
| 3 | $249,436 | $1,061,208 | $811,772 |
| 4 | $268,494 | $1,082,432 | $813,938 |
| 5 | $289,009 | $1,104,081 | $815,072 |
| 6 | $311,091 | $1,126,162 | $815,072 |
| 7 | $334,860 | $1,148,686 | $813,826 |
| 8 | $360,446 | $1,171,659 | $811,214 |
| 9 | $387,986 | $1,195,093 | $807,107 |
| 10 | $417,630 | $1,218,994 | $801,364 |
How this is calculated
- No payments are required, so interest is added to the balance and compounds semi-annually. The balance is normally repaid when you sell or move out.
- Reverse mortgages are available to homeowners aged 55 and over. Lenders lend at most about 55% of the home's value, and far less at younger ages. Actual amounts depend on your age, location and property type.
- Reverse mortgage rates are typically higher than regular mortgage rates. The rate and home growth used here are examples only.
Calculator disclaimer
Calculators are provided for general informational and illustrative purposes only.
Results are estimates and may not reflect lender-specific qualification requirements, mortgage-insurance premiums, taxes, fees, available products, payment calculations or other transaction costs.
Calculator results do not constitute:
- Mortgage approval
- Pre-approval
- A rate commitment
- A lending commitment
- Financial advice
- Tax advice
- Or legal advice
Mortgage rules, rates and lender requirements can change.
For advice about your specific circumstances, speak with the appropriate licensed professional.
But how does this apply to your business income?
This calculator estimates the numbers you entered. How a lender treats your salary, dividends or business income is a separate question, and it's the one the Mortgage Readiness Review looks at first.