Reverse Mortgage Calculator

Thinking of retiring but not sure you have enough superannuation saved to live comfortably? This Reverse Mortgage Calculator can help you find out how many years you will be able to live off the equity in your home before it returns to a zero value or protected level. The interest that accumulates on a reverse mortgage compounds monthly and grows rapidly. You can use this calculator to see if using a reverse mortgage could be worthwhile for you.

Reverse Mortgage Calculator


Reverse Mortgage Calculator Assumptions

  • How much you can borrow is calculated on lenders' Age and LVR model which can differ from lender to lender.
  • The property increase/decrease rate remains constant over the life of the loan however in reality this rate may rise and fall over time.
  • Interest rate does not change over the loan term.
  • No rounding is done throughout calculation whereas account balance is rounded to at least the nearer cent in practice.
  • The fees do not change over the loan term. However fees may vary over time in practice.
  • Outstanding loan is calculated each month by summing up any payments made to the borrower, current monthly interest and fees and previous month's loan balance.
  • The remaining home equity is calculated by subtracting the loan balance from current property value.
  • "No negative equity guarantee" ensures that you will never leave a debt to your estate from taking out equity release. On 18 September 2012, the Government introduced statutory 'negative equity protection' on all new reverse mortgage contracts. This means you cannot end up owing the lender more than your home is worth.


This Reverse Mortgage Calculator has been provided in good faith as a guidance tool only. Results are not financial advice, are a guide only, and are not a guaranteed outcome or quote. You should always discuss your individual situation with an Australian Credit Licensee or Authorised Credit Representative.

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