Reverse Mortgage Calculator
This reverse mortgage calculator projects debt and remaining home equity as unpaid interest builds up. Enter an initial advance and monthly drawdowns, then compare the result with zero property growth.
Home and borrowing
Added at the start of each month throughout the projection. Enter zero for a lump sum only.
Use zero for unchanged value or a negative percentage for falling value.
Interest and fees
Hypothetical starting rate. Interest is added monthly at one-twelfth of the annual rate.
Added to the initial debt. Enter zero for fees paid separately.
Added at the start of each month before interest.
Results
Correct the marked input to calculate the projection.
Remaining equity
$802,073.64
Property value less projected debtProjected debt
$444,300.29
Includes financed fees and interestCapitalised interest
$254,300.29
Cumulative unpaid interestTotal cash drawn
$190,000.00
Initial advance plus monthly drawdownsAfter 15 years, projected property value is $1,246,373.93. With zero property growth, remaining equity is $355,699.71. Financed fees total $0.00.
Debt and remaining equity
Annual projections under your entered property growth assumption.
After 15 years, projected debt is $444,300.29 and remaining equity is $802,073.64.
Annual projection
Year zero includes the initial advance and setup fee. Interest and fees are cumulative.
| Year | Debt | Interest | Cash drawn | Fees | Home value | Equity |
|---|---|---|---|---|---|---|
| 0 | $100,000.00 | $0.00 | $100,000.00 | $0.00 | $800,000.00 | $700,000.00 |
| 1 | $113,461.45 | $7,461.45 | $106,000.00 | $0.00 | $824,000.00 | $710,538.55 |
| 2 | $127,896.02 | $15,896.02 | $112,000.00 | $0.00 | $848,720.00 | $720,823.98 |
| 3 | $143,374.07 | $25,374.07 | $118,000.00 | $0.00 | $874,181.60 | $730,807.53 |
| 4 | $159,971.03 | $35,971.03 | $124,000.00 | $0.00 | $900,407.05 | $740,436.02 |
| 5 | $177,767.79 | $47,767.79 | $130,000.00 | $0.00 | $927,419.26 | $749,651.47 |
| 6 | $196,851.07 | $60,851.07 | $136,000.00 | $0.00 | $955,241.84 | $758,390.77 |
| 7 | $217,313.89 | $75,313.89 | $142,000.00 | $0.00 | $983,899.09 | $766,585.20 |
| 8 | $239,255.97 | $91,255.97 | $148,000.00 | $0.00 | $1,013,416.07 | $774,160.10 |
| 9 | $262,784.24 | $108,784.24 | $154,000.00 | $0.00 | $1,043,818.55 | $781,034.31 |
| 10 | $288,013.37 | $128,013.37 | $160,000.00 | $0.00 | $1,075,133.10 | $787,119.73 |
| 11 | $315,066.32 | $149,066.32 | $166,000.00 | $0.00 | $1,107,387.10 | $792,320.78 |
| 12 | $344,074.93 | $172,074.93 | $172,000.00 | $0.00 | $1,140,608.71 | $796,533.78 |
| 13 | $375,180.57 | $197,180.57 | $178,000.00 | $0.00 | $1,174,826.97 | $799,646.40 |
| 14 | $408,534.84 | $224,534.84 | $184,000.00 | $0.00 | $1,210,071.78 | $801,536.94 |
| 15 | $444,300.29 | $254,300.29 | $190,000.00 | $0.00 | $1,246,373.93 | $802,073.64 |
This projection assumes a constant rate, monthly interest and no repayments. Monthly drawdowns continue for the full period. Property growth compounds annually.
Figures round to cents for display. Calculations retain precision between months. Sale costs, tax and pension effects are excluded. The result is a scenario estimate, not a borrowing limit or loan offer.
CSV includes the assumptions and full annual schedule. Export PDF opens your browser's print dialog. Your entries stay in this browser.
Capitalised Interest and Drawdowns
Capitalised interest is unpaid interest added to the loan balance. When no regular repayment reduces the debt, each month's interest increases the balance used for the next month's calculation.
This calculator adds the initial advance and financed setup fee at the start. It then adds each monthly drawdown and monthly fee before calculating that month's interest. An advance received earlier therefore accumulates more interest than one received later.
The monthly calculation is closing debt = (opening debt + drawdown + fee) × (1 + annual rate ÷ 1,200). Total cash drawn excludes fees and interest. Different advance dates or daily interest rules can produce different lender figures.
Reading the Equity Projection
Remaining equity equals the projected property value minus the projected debt. The annual schedule shows both amounts, so a rising property value cannot hide a rising loan balance.
In the hypothetical starting example, the home starts at $800,000, with a $100,000 initial advance and $500 monthly drawdowns. At 7% interest over 15 years with no fees, projected debt reaches $444,300.29. Capitalised interest accounts for $254,300.29 of that debt.
At 3% annual property growth, the example's home value reaches $1,246,373.93 and remaining equity is $802,073.64. At zero growth, the home stays at $800,000 and equity falls to $355,699.71. Neither growth assumption predicts a future sale price.
A negative equity figure means projected debt exceeds the assumed home value. The calculation keeps that shortfall visible and does not cap debt at the property's value. It does not determine the amount legally recoverable under a loan contract.
Private Reverse Mortgages and Government Loans
The Australian Securities and Investments Commission (ASIC) publishes the Moneysmart reverse mortgage calculator. References to ASIC's calculator and Moneysmart's calculator mean the same public tool. Its projection does not approve an application or endorse a lender's offer.
The Home Equity Access Scheme is a separate government loan with its own eligibility and payment rules. Services Australia provides scheme-specific calculators. Its fortnightly interest calculation differs from this tool's monthly model.
Use this calculator to compare capitalised-interest scenarios on consistent assumptions. For qualification, provider choices and legal protections, read how reverse mortgages work in Australia.