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Reverse Mortgage Calculator

See how a reverse mortgage balance compounds when no repayments are made, and how much equity might remain in your home over time.

Current home value

Amount borrowed (lump sum)

Interest rate (% p.a.)

Years from now

Home value growth (% p.a.)

Remaining equity after 10 years

$938,207

$271,318

Loan balance owed

$1,209,525

Projected home value

With a reverse mortgage you make no repayments, so interest compounds on the growing balance. Australian reverse mortgages include a statutory negative equity protection, meaning you generally can't owe more than your home is worth — but the loan still erodes the equity available to you or your estate.

Estimates only. Assumes a single lump sum, a constant interest rate and steady home-value growth.

With a reverse mortgage you borrow against your home's equity and make no repayments, so interest compounds and the balance grows over time, steadily reducing the equity left for you or your estate. Australian reverse mortgages include statutory negative equity protection, so you generally can't owe more than your home is worth when it's sold.

⚠️Bad credit pushing your rate up?

A default or error on your credit file can cost you a much higher interest rate than the one above. We're an ASIC-licensed, solicitor-led team — get a free, no-obligation assessment. No Win No Fee.

Free Credit Assessment →0489 265 737

Releasing Equity Without Losing Control

A reverse mortgage lets older homeowners access equity without selling, but the compounding balance steadily reduces what's left for you or your estate. It's a significant decision — model it carefully and get advice. Reverse mortgages don't generally depend on your credit score the way standard loans do.

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Brokers and partner sites can embed this calculator for free and keep your own branding around it. Just copy the code below. It includes a small credit link back to Australian Credit Solutions — that's the only condition of use.

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<p style="font:14px/1.5 Arial,sans-serif;color:#475569">Free <a href="https://www.australiancreditsolutions.com.au/calculators/reverse-mortgage-calculator">Reverse Mortgage Calculator</a> by <a href="https://www.australiancreditsolutions.com.au">Australian Credit Solutions</a></p>

FAQs

Reverse Mortgage Calculator Questions

How does a reverse mortgage work?

You borrow against the equity in your home and make no regular repayments; interest is added to the balance, which grows over time. The loan is usually repaid when you sell, move into care, or pass away.

Can I end up owing more than my home is worth?

Australian reverse mortgages carry a statutory negative equity protection, so you generally can't owe more than the home's value when it's sold. However, the compounding balance still reduces the equity left for you or your estate.

Does my credit score affect a reverse mortgage?

Reverse mortgages are assessed mainly on age and home equity rather than income and credit score, so they don't usually hinge on your credit file the way a standard mortgage does.

Important — this is an estimate, not advice. This calculator is a model assuming a single lump sum, a constant interest rate and steady home-value growth; actual outcomes depend on draw type, rate changes, fees and the property market. It is general information about how a reverse mortgage compounds, not financial or credit advice — seek advice from a licensed professional. Results are not guaranteed and do not constitute financial, credit or tax advice. Consider your own objectives, financial situation and needs, and seek advice from a licensed professional before making a decision. Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003 and provides credit file correction services. Last updated: 14 June 2026.