Reverse Mortgage Calculator
Turn home equity into monthly income without selling — RML vs RMLeA
Configure Reverse Mortgage
Results
Property Value vs Loan Outstanding
House appreciates while loan grows — the equity gap is what heirs inherit
Key Insights
CFP Note — When Reverse Mortgage Fits Best
Reverse Mortgage works best when you are property-rich but income-poor — a senior citizen with a paid-off home but limited pension / SWP income. It is most appropriate when your heirs are financially settled (they don't need the house as their security net) and the property is worth over ₹75 lakh so the eligible loan is meaningful. If you have adequate retirement corpus and strong SWP income, or if your children depend on inheriting the house, traditional routes (SWP, SCSS, RBI Floating Bonds, annuity) are usually cleaner.
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Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.
Reverse mortgage — turning a home into retirement income
A reverse mortgage lets a senior citizen who owns a home borrow against its value and receive money — often as a monthly payout — without selling or moving out. The loan, plus interest, is settled later, usually from the sale of the property after the borrower’s lifetime, so the home funds retirement while remaining a place to live.
This calculator estimates the monthly payout a property could generate under a reverse-mortgage arrangement, based on its value, the borrower’s age and the loan terms. It suits asset-rich but cash-poor retirees; the trade-offs — interest accruing over time and a reduced inheritance — mean it is a decision to weigh carefully with family.
How this calculator works
- 1Enter the property value, the borrower’s age and the expected loan terms.
- 2The calculator estimates the monthly payout the reverse mortgage could provide.
- 3It illustrates how the outstanding amount grows as payouts and interest accrue.
Frequently asked questions
What is a reverse mortgage?
A reverse mortgage lets a senior homeowner receive money — often monthly — against the value of their home, while continuing to live in it. The loan and accrued interest are typically repaid later from the sale of the property, usually after the borrower’s lifetime, rather than through regular repayments.
Who is a reverse mortgage suitable for?
It can suit senior citizens who own their home but need additional income and have limited other savings — asset-rich but cash-poor retirees. It is less suitable if leaving the property to heirs is a priority, since the outstanding loan reduces what remains. It is a decision best discussed with family.
What happens to the house at the end?
On the borrower’s passing (or permanent move-out), the lender is repaid from the property, and any remaining value passes to the heirs, who may also have the option to settle the loan and keep the home. The exact terms depend on the scheme, so read them carefully.
Illustrative only; reverse-mortgage terms vary by lender and scheme. Consider the impact on inheritance and discuss with family.
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