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Reverse Mortgage Calculator

Estimate the HECM principal limit on your home from HUD's factor table, and what's left after costs and any mortgage payoff.

Level: Grade 7

  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

Reverse Mortgage Calculator

Inputs

At least 62. Use the nearest whole year.

From the lender's quote. On a fixed-rate loan, it's the loan's interest rate.

A reverse mortgage must pay off any loan on the home first. Use 0 if none.

Appraisal, title and recording. Use your quote.

Result

Estimated principal limit

$153,200.00

At age 72, a rate of 6.75% gives a factor of 0.383, for a principal limit of about $153,200.00. After costs and payoffs, about $76,200.00 is left.

Left after costs and payoffs
$76,200.00
Usable in the first 12 months
$15,320.00
HUD principal limit factor
0.383
Rate used in the table
6.75%
Maximum claim amount
$400,000.00Your home's value.
Upfront mortgage insurance
$8,000.00
Origination fee limit
$6,000.00The most allowed. Lenders may charge less.
Due at closing
$77,000.00
Where the principal limit goes
  • Mortgage payoff$60,000.0039.2%
  • Upfront insurance$8,000.005.2%
  • Fees and costs$9,000.005.9%
  • Left for you$76,200.0049.7%

See the step-by-step solution ↓

Step-by-step solution

  1. HUD counts the home's value here, because it's under the national limit for 2026

     limit$1,249,125.00= value counted$400,000.00

  2. Look up HUD's factor for age 72. Your rate is rounded to the nearest 1/8 of a percent first

    6.75% rounds to=6.75%

  3. Multiply by the factor to get your principal limit, the most this loan can start with

    $400,000.00×0.383=$153,200.00

  4. Find the upfront mortgage insurance: 2% of the value counted

    $400,000.00×2%=$8,000.00

  5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

    $8,000.00+$6,000.00+$3,000.00+$60,000.00=$77,000.00

  6. Subtract those from the principal limit. This is what's left for you, in total

    $153,200.00−$77,000.00=$76,200.00

  7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here the second is larger, and it can't pass the limit

    $77,000.00+$153,200.00×10%=$92,320.00

  8. Subtract the closing items to see the cash you could use in the first 12 months

    $92,320.00−$77,000.00=$15,320.00

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out roughly how much you could borrow with a federally insured reverse mortgage. Enter your home's value, your age, the expected rate and any mortgage you owe. You'll see an estimated principal limit, and what's left after costs and payoffs.

A reverse mortgage lets homeowners aged 62 and up turn part of their home's value into cash. You don't make monthly loan payments, so the amount you owe grows over time. This page covers the FHA-insured kind, called a HECM (Home Equity Conversion Mortgage). It uses the actual factor table that HUD publishes.

Where it's used

Why this math matters outside the classroom:

  • Table lookup. A homeowner aged 72 finds a factor of 0.383 and multiplies $400,000 by it to get $153,200.
  • Counting the costs. A couple adds $8,000 of insurance and a $6,000 fee to see what comes out of the limit first.
  • Clearing a mortgage. A retiree checks that a $153,200 limit covers a $60,000 mortgage and $17,000 of closing costs.
  • Comparing ages. A family compares factors at ages 65 and 75 at 7%, which are 0.333 and 0.400.

Grade level and standards: Grade 7; Common Core State Standards for Mathematics 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Enter your home's value.
  2. Enter the age of the youngest borrower.
  3. Enter the expected interest rate from a lender's quote.
  4. Enter any mortgages to pay off and your other closing costs, then read your principal limit.

What the inputs mean

Home value
Your lender will use an appraisal. HUD counts the appraised value only up to the national limit, which is $1,249,125 for 2026.
Age of the youngest borrower
The age of the youngest borrower, as a whole year. HUD's table for a younger eligible spouse who isn't a borrower has lower factors, and it's not included here.
Expected interest rate
On a fixed-rate loan, this is the loan's interest rate. On an adjustable loan, it's a 10-year index rate plus the lender's margin. A lower rate gives a higher factor.
Mortgages to pay off
A HECM must be the only loan on the home, so existing mortgages are paid off from it first.
Other closing costs
Items such as the appraisal, title and recording fees. The origination fee is added for you.

Formula and method

maximum claim amount = the lesser of home value and $1,249,125
principal limit = maximum claim amount × factor (HUD table, by age and rate)
upfront insurance = maximum claim amount × 2%
origination fee limit = 2% of the first $200,000 + 1% of the rest (at least $2,500, at most $6,000)
first-year limit = the greater of 60% of principal limit, or closing items + 10% of principal limit

The maximum claim amount is the value HUD counts for your home. The principal limit is the most your loan can start with, before anything comes out of it.

The factor comes straight from HUD's table. Older borrowers get a higher factor, and higher rates get a lower one. HUD rounds your rate to the nearest 1/8 of a percent first, so 6.70% becomes 6.75%.

Closing items here mean the insurance, the fee, your other costs and any mortgage payoff. You can't always use all your money at once. In the first 12 months, federal rules limit what you can draw, and the rest stays available later.

Worked example

A $400,000 home, a youngest borrower aged 72, a 6.75% expected rate, a $60,000 mortgage to pay off and $3,000 of other closing costs.

  1. The home is under the limit, so HUD counts $400,000.
  2. HUD's factor for age 72 at 6.750% is 0.383.
  3. Principal limit: $400,000 × 0.383 = $153,200.
  4. Upfront insurance: $400,000 × 2% = $8,000.
  5. Origination fee limit: 2% × $200,000 + 1% × $200,000 = $6,000.
  6. Due at closing: $8,000 + $6,000 + $3,000 + $60,000 = $77,000.
  7. Left after that: $153,200 − $77,000 = $76,200.
  8. First-year limit: $77,000 + 10% × $153,200 = $92,320, which leaves $15,320 to use in the first 12 months.

Result: The estimated principal limit is $153,200. About $76,200 is left after costs and the payoff, with $15,320 usable in the first 12 months.

Understanding the result

The principal limit isn't cash in hand. It's the starting ceiling. The figure that matters most to you is what's left after costs and payoffs.

If the left-over figure is negative, the loan can't cover your existing mortgage. You'd need to bring the difference to closing.

Waiting raises the factor, and a lower rate raises it too. Try a few ages and rates to see how much they matter.

A larger payoff can change which first-year rule applies. That's why the first-year figure can look small next to the total.

Assumptions and limitations

  • It uses HUD's table for FHA case numbers assigned on or after October 2, 2017, which HUD's latest review says is still current.
  • The upfront insurance is 2% of the maximum claim amount.
  • The origination fee is set at the federal limit, the most a lender can charge. Yours may be lower.
  • Exact ties when rounding the rate go up to the next 1/8 of a percent.
  • It doesn't cover private reverse mortgages, or a HECM used to buy a home.
  • It doesn't include set-asides. A lender may hold back funds for property tax and insurance after a financial review.
  • It doesn't include a younger eligible non-borrowing spouse, whose age could lower the factor.
  • The national limit is the one for 2026, and HUD normally updates it each year.
  • The balance grows with interest and a yearly 0.5% insurance charge. This page doesn't project that.
  • This is an estimate, not an offer. Only a lender can give you real numbers, and you may not qualify.

Frequently asked questions

How much can I get from a reverse mortgage?

It depends mainly on the age of the youngest borrower, the expected rate and your home's value. Then costs and any existing mortgage come out. In the example, a $400,000 home gives a $153,200 limit, and about $76,200 is left.

What is a principal limit factor?

It's a number from HUD's table, set by age and expected rate. Multiply it by the maximum claim amount to get the principal limit. At age 72 and 6.750%, it's 0.383.

Do I have to repay a reverse mortgage?

There are no monthly loan payments, but the loan does come due. That happens when the last borrower dies, or the home stops being a borrower's main home, among other events. You also keep paying property tax and insurance.

Can I take all the money at once?

Not usually. In the first 12 months, you can use the greater of 60% of the limit, or your closing items plus 10% of the limit.

Why does a higher rate mean less money?

Your balance grows faster at a higher rate. So HUD's factor is lower, to keep the loan within the home's expected value.

Sources

How this calculator is checked

Method: HUD principal limit factor workbook (case numbers on or after October 2, 2017), copied by script; cross-checked against the nine factors printed in HUD's FY 2025 actuarial review, Exhibit I-1. HUD ML 2017-12, 2025-22 and 2014-21; 24 CFR 206.31. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-31. Found a problem? Tell us.

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