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Reverse Mortgage Payment Calculator
Estimate the level monthly payment a reverse mortgage could pay you for as long as you live in your home.
Short answer
A reverse mortgage can pay you a 'tenure' payment — a level monthly amount for as long as you live in the home — instead of a lump sum. The payment is your available proceeds spread to age 100 at the note rate plus ongoing insurance, so a larger available amount or an older borrower means a bigger monthly check. Enter your home value, age, rate, and any mortgage to pay off to estimate your monthly payment below.
Est. monthly payment
$1,411.18
Tenure payout for life
Available to you
$209,000
Cash, credit line, or payments
Principal limit
$227,500
45.5% of Max Claim Amount
Total closing costs
$18,500
Insurance + fees, financed
How the money breaks down
- Max Claim Amount
- $500,000
- Principal limit
- $227,500
- FHA insurance (IMIP, 2%)
- − $10,000
- Origination fee
- − $6,000
- Third-party costs
- − $2,500
- Available to you
- $209,000
How the monthly tenure payment is set
A tenure payment turns your available principal into a lifetime annuity: the calculator spreads it over the months to age 100 at the note rate plus the ongoing 0.5% insurance premium. Because the credit line grows over time, the real tenure figure your lender quotes can differ, but this shows the ballpark and how age and rate change it. You can switch a tenure plan to a lump sum or line of credit later.
How we calculate this
Every number on this page comes from the FHA Home Equity Conversion Mortgage (HECM) formula, applied step by step:
- Max Claim Amount. your home's appraised value, capped at the FHA national lending limit of $1,209,750 (2025). Equity above the cap doesn't count toward the loan.
- Principal limit. Max Claim Amount × a Principal Limit Factor set by the youngest borrower's age and the expected interest rate. Older borrowers and lower rates raise the factor. The factors here are interpolated from HUD's published PLF tables.
- Closing costs. the 2% Initial Mortgage Insurance Premium (IMIP) on the Max Claim Amount, plus a HUD-capped origination fee (2% of the first $200,000 of value + 1% above, from $2,500 to $6,000), plus third-party costs. These are financed into the loan.
- Existing mortgage payoff. a reverse mortgage must be first-lien, so any current mortgage is paid off from the proceeds before you receive anything.
- Available to you. principal limit minus closing costs minus the mortgage payoff. You can take it as a lump sum, a growing line of credit, or a level monthly 'tenure' payment estimated by spreading the amount to age 100.
Assumptions
- FHA HECM only — proprietary 'jumbo' reverse mortgages use different limits and factors not modeled here.
- Principal Limit Factors are interpolated from HUD tables; the exact factor is fixed by the expected rate set at closing.
- Third-party closing costs are an estimate and vary by lender and state; IMIP and the origination-fee cap are set by HUD.
- The tenure payment spreads available proceeds to age 100 and does not model the growing credit line — an estimate, not a lender quote.
- Educational estimates only, not a loan offer or financial advice. HUD-approved counseling is required before a HECM.
Sources
Last reviewed: July 19, 2026
Frequently asked questions
Related tools
How much can I get from a reverse mortgage?+
Your borrowing power is the Max Claim Amount (your home value, capped at the FHA limit of $1,209,750) multiplied by a Principal Limit Factor set by the youngest borrower's age and the expected interest rate. Older borrowers and lower rates get a higher factor. From that principal limit you subtract the mortgage insurance premium, origination fee, and any existing mortgage that must be paid off. This calculator estimates each step so you see what actually reaches you.
How does age affect a reverse mortgage?+
The older the youngest borrower, the more you can borrow. HUD's Principal Limit Factor rises with age because the loan is expected to run for fewer years. A 62-year-old might access around 40% of the home value at today's rates, while an 80-year-old could access well over 50%. Both borrowers on the loan must be counted, and the factor uses the younger one's age.
Do I have to pay off my existing mortgage first?+
Yes. A reverse mortgage must be in first-lien position, so any existing mortgage or home-equity loan is paid off from the proceeds at closing. What's left after that payoff — and after closing costs — is what you can take as cash, a line of credit, or monthly payments. If your current mortgage is larger than the available proceeds, you'd need to bring cash to closing to qualify.
What are the costs of a reverse mortgage?+
The main upfront cost is the Initial Mortgage Insurance Premium (IMIP), 2% of the Max Claim Amount, paid to FHA. On top of that is a HUD-capped origination fee (2% of the first $200,000 of value plus 1% above, from $2,500 up to $6,000) and third-party costs like appraisal, title, and recording. These are usually financed into the loan, which is why the amount you receive is lower than the gross principal limit.
What is a HECM?+
A HECM (Home Equity Conversion Mortgage) is the reverse mortgage insured by the Federal Housing Administration — the only federally-backed reverse mortgage and by far the most common. It's for homeowners 62 and older, requires HUD-approved counseling, and carries FHA mortgage insurance that guarantees you'll never owe more than the home is worth when the loan is repaid.
Can I receive a reverse mortgage as monthly payments?+
Yes. Instead of a lump sum you can take a 'tenure' payment — a level amount paid every month for as long as you live in the home — or a 'term' payment for a fixed number of years, or a line of credit, or any combination. This calculator estimates the tenure payment by spreading your available proceeds to age 100 at the note rate. The lender sets the exact figure.
Are reverse mortgage figures on this page exact?+
No — they're planning estimates. The Principal Limit Factor here is interpolated from HUD's published tables, and the true factor is fixed from the expected rate set at closing. Third-party closing costs vary by lender and state. Use this to understand the ballpark and the moving parts, then get an official quote and required HUD counseling before deciding.
Planning estimates only, not financial advice or a loan offer. Principal Limit Factors are interpolated from HUD tables and the exact figure is set at closing; third-party costs vary. A HECM requires HUD-approved counseling. Your lender’s figures govern.