Reverse mortgage calculator
Reverse mortgage calculator: the equity left in your home over timeThis calculator shows what you could owe on a reverse mortgage over time and how much of your home would still be yours. Enter your home's value, a lump sum, regular payments or both, and it shows the balance and your equity at any year up to 30, with a table at 5, 10, 15 and 20 years.
Project the equity left in your home
Lenders set how much you can borrow from the younger borrower's age.
Your best estimate, or a recent appraisal from a local agent.
Leave at $0 for a lump sum only.
Default 7%. Change it to the rate a lender quotes you.
Default 3%. A lower figure is the safer test.
Equity left after 15 years, at age 85
$1,153,336
That is 87% of the home's projected value.
- Projected home value
- $1,324,272
- Amount owing
- $170,937
- Money you received
- $60,000
- Interest and fees added
- $110,937
- General limit at 7030% of the home's value. Each lender sets its own limit.
- $255,000
An estimate, not a prediction or an offer. It uses the same method and default assumptions as the Moneysmart reverse mortgage calculator, last updated by Moneysmart on 27 October 2026: the rate and growth stay constant, no repayments are made, and fees are added to the loan. A broker must show you ASIC's own projections before helping you apply, and a lender before it assesses your application. Lending is subject to approval.
Talk to us about a reverse mortgageEquity left under the three projections a lender must show you
| After | Your figures | Rate 2 points higher | No price growth |
|---|---|---|---|
| 5 yearsage 75 | $900,325 | $891,442 | $764,942 |
| 10 yearsage 80 | $1,021,749 | $995,247 | $729,420 |
| 15 yearsage 85 | $1,153,336 | $1,093,990 | $679,063 |
| 20 yearsage 90 | $1,292,870 | $1,174,645 | $607,676 |
“Rate 2 points higher” keeps your growth figure and adds two percentage points to the rate. “No price growth” keeps your rate and holds the home at today’s value. Method matched to the Moneysmart reverse mortgage calculator on 2 November 2026, where you can also run it against a named lender’s limits.
It uses the same method and default assumptions as Moneysmart's reverse mortgage calculator, run by ASIC, the government's credit regulator: a 7% interest rate, 3% a year growth in the home's value, and interest added to the loan each month with no repayments.
Under the result, a table runs the two stress tests a lender must show you before you take one out: interest rates two points higher, and no growth in the home's value at all.
How a reverse mortgage balance grows
You make no repayments on a reverse mortgage, so interest is added to the loan every month and then charged interest itself. At 7%, a balance roughly doubles in ten years and quadruples in twenty.
| Drawn today | After 10 years at 7% | After 20 years at 7% |
|---|---|---|
| $50,000 | $100,483 | $201,937 |
| $100,000 | $200,966 | $403,874 |
| $150,000 | $301,449 | $605,811 |
Your home's value usually grows too, and what is left for you is the home's value minus the amount owing. That is why the calculator's headline figure is equity, not the amount you can borrow.
How to use the reverse mortgage calculator
Age of the youngest borrower
Lenders set how much you can borrow from the younger partner's age. The calculator shows the general limit at that age, which is 15% of the home's value at 55 rising one point a year.
Home value and growth
Your best estimate of what the home would sell for today, and how fast you expect it to grow. Moneysmart's default is 3% a year. A lower figure is the safer test.
What you draw
A lump sum now, regular payments for a set number of years, or both. Leave the regular payment at $0 if you only want a lump sum.
Rate and fees
Moneysmart's default rate is 7%. Add any set-up or monthly fees the lender adds to the loan, and leave out any you would pay yourself.
The three projections a lender has to show you
Before assessing you for a reverse mortgage, a lender or broker must show you equity projections made with ASIC's own calculator. That is a requirement of the National Credit Act, and the scenarios are set by ASIC rather than chosen by the lender.
| Projection | Interest rate | Home value growth |
|---|---|---|
| Your figures | As agreed with the lender | 3% a year unless you change it |
| Higher rates | Two points higher | 3% a year unless you change it |
| No growth | As agreed with the lender | 0% a year |
The table under our calculator runs the same three, so you can see them before you speak to anybody. Look hardest at the no-growth column, because it shows what is left if your home does not rise in value at all.
When the balance passes the value of the home
On a long enough timeline, or with little growth, the amount owing can pass what the home is worth. Reverse mortgages taken out since 18 September 2012 carry negative equity protection, so you cannot owe the lender more than the home sells for.
The protection caps the debt. It does not leave anything for you or your estate, and the calculator shows "$0, protected" when a projection reaches that point.
Where these numbers come from, and when they were checked
The method and default assumptions were matched to the Moneysmart reverse mortgage calculator on 2 November 2026. Moneysmart last updated that page on 27 October 2026.
Moneysmart's version also lets you pick a named lender and applies that lender's age and loan limits. Run it there as well, and bring both results when you talk to us about a reverse mortgage in Perth.
Common questions about the reverse mortgage calculator
How does a reverse mortgage calculator work?
It adds interest to the loan each month, because no repayments are made, and grows your home's value by a yearly rate. Subtracting the amount owing from the projected value gives the equity left. This one uses Moneysmart's method, with a 7% rate and 3% growth as defaults.
How much can I borrow on a reverse mortgage?
As a general guide, 15% of your home's value at 55, rising about one percentage point a year, so around 25% at 65 and 35% at 75. Each lender sets its own limits, minimum age and property value, and for a couple the younger borrower's age is used.
How fast does a reverse mortgage balance grow?
At 7% compounding monthly, a balance roughly doubles every ten years. $100,000 drawn today would be about $200,966 after ten years and $403,874 after twenty, before any fees. Drawing less, or drawing later, slows that down a lot.
What interest rate does the calculator assume?
It starts at 7%, which is Moneysmart's default, and you can change it to the rate a lender has quoted you. The stress test column adds two points to whatever rate you enter, as ASIC's projections do.
Can I owe more than my house is worth?
Not on a reverse mortgage taken out since 18 September 2012. Those loans carry negative equity protection, so the lender accepts the sale proceeds as full payment. The calculator shows $0 equity when a projection gets there, because nothing is left for you or your estate.
Is this the same as the Moneysmart reverse mortgage calculator?
It uses the same method and default assumptions, checked against Moneysmart's calculator on 2 November 2026. Moneysmart's version also applies named lenders' limits and prints a report, so it is worth running both. A broker must show you ASIC's projections before helping you apply.
Our other calculators
The other calculatorsMost people need two or three of these to get the full picture of what a purchase actually costs.
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The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Any figures shown are estimates only. Lending is subject to approval, and to the lender's terms, conditions, fees and charges. Consider whether the information is appropriate for you before acting on it.
Get in touch
The calculator estimates. A lender decidesThe Reverse Mortgage Calculator works off what you type in. A broker works off your payslips, your credit file and the lender's own policy, send us four details and we will tell you where you actually stand.
Would rather just talk?
Ringing is quicker than waiting for us to ring you, and you get a broker rather than a queue.
1300 813 113