Reverse Mortgage Payment Calculator
See how your reverse mortgage balance grows over time. This free reverse mortgage calculator builds a full amortization table showing interest, fees, and your total payoff cost year by year.
Quick Answer
Starting with a $212,000 reverse mortgage balance at 6.5% interest, your loan balance grows to about $396,000 after 10 years as interest and fees accrue instead of being paid monthly.
Loan Details
Use your estimate from the Reverse Mortgage Calculator, or enter your own.
Leave at 0 if you took a lump sum or line of credit instead.
Projected Balance at Year 10
$396,000
Total Interest Accrued
$168,000
Total MIP Accrued
$14,700
Total Draws Taken
$0
Because a reverse mortgage requires no monthly payment, interest and mortgage insurance are added to your balance each month rather than billed to you. This is called negative amortization, your balance grows instead of shrinks, which is the opposite of a traditional mortgage payoff.
Reverse Mortgage Amortization Table
Yearly view| Year | Interest Added | MIP Added | Draws | Balance |
|---|
What Is a Reverse Mortgage Amortization Calculator?
A reverse mortgage payment calculator, or reverse mortgage amortization calculator, projects how your loan balance changes over time. Unlike a regular amortization table where the balance goes down with each payment, a reverse mortgage amortization chart shows the balance going up, since interest, mortgage insurance premiums, and any funds you draw are added to what you owe instead of paid down monthly.
Cost of a Reverse Mortgage Over Time
The cost of reverse mortgage grows the longer the loan is outstanding, since unpaid interest and MIP compound. Below is a general illustration of how balances can grow on a $200,000 starting loan.
| Years Outstanding | Approx. Balance (at 6.5%) |
|---|---|
| 5 years | ~$276,000 |
| 10 years | ~$381,000 |
| 15 years | ~$527,000 |
| 20 years | ~$728,000 |
Actual growth depends on your interest rate, MIP rate, and any additional draws. Use the calculator above for a figure based on your own numbers.
How to Use This Calculator
- Enter your starting reverse mortgage balance.
- Set your interest rate and annual MIP rate.
- Choose how many years to project forward.
- Add a monthly draw amount if you're taking tenure payments.
- Review the year-by-year amortization table showing balance growth.
Frequently Asked Questions
Why does my reverse mortgage balance go up instead of down?
Because no monthly payments are required, unpaid interest and mortgage insurance are added to the balance each month instead of being paid off, a process called negative amortization.
Can the balance ever exceed my home's value?
With a HECM, you or your heirs will never owe more than the home is worth at payoff, thanks to the FHA's non-recourse loan protection, even if the balance technically grows past the home's value.
How is the reverse mortgage payoff calculated?
The reverse mortgage payoff amount equals the starting balance plus all accrued interest, MIP, and any draws taken, up to the date the loan becomes due and payable.