Reverse Mortgage · Calculator
Reverse Mortgage Calculator
See how compound interest erodes your home equity over time — before you sign. Model how a reverse mortgage or home equity release affects your property equity over time. See compound interest growth, equity erosion, and the impact on your estate.
Important: Reverse mortgages are complex, high-cost financial products regulated by ASIC. They may affect your Age Pension eligibility, reduce your estate, and compound debt over time. Always seek independent financial and legal advice before proceeding. Consider alternatives like the Home Equity Access Scheme (government).
01 —INPUTS
Current market value of your home
Most reverse mortgages require age 60+. Younger ages get lower LVR limits.
Reverse mortgage rates are typically 1.5-2% above standard variable
Assumed annual property price growth
02 —RESULTS
Final debt$768,676
Total drawn$100,000
Final property value$1,675,022
Remaining equity$906,346
Equity remaining54.1%
Last 5 Years
AgeDebtEquity
91$554,657$933,579
92$601,803$931,080
93$652,956$925,913
94$708,457$917,778
95$768,676$906,346
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Tax Accuracy & Sources
This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.
What is a reverse mortgage?
A reverse mortgage lets homeowners aged 60+ borrow against their home equity without making repayments. The loan plus compound interest is repaid when the home is sold — usually when you move into aged care or pass away. Regulated reverse mortgages since 2012 include a no-negative-equity guarantee.
How much equity will be left?
That depends on your property value, how much you draw down, the interest rate, and how long you live in the home. Because interest compounds on the growing debt, the amount owed can grow surprisingly fast. This calculator shows year-by-year projections so you can see exactly how equity erodes over time.
Does a reverse mortgage affect my Age Pension?
It can. Lump sum drawdowns that sit in your bank account may count as an asset for the Age Pension assets test. Money drawn and spent within the same fortnight does not count. If you're receiving the Age Pension, speak with a financial counsellor before taking out a reverse mortgage.