Reverse Mortgage Payment Calculator
A reverse mortgage can pay you monthly for life (tenure) or for a fixed period (term). This calculator shows exactly how much you'd receive under each option.
About this tool
The tenure and term payment options convert your HECM proceeds into a monthly income stream. Tenure payments last for life; term payments cover a fixed number of years. This calculator computes both using the standard HECM annuity formula.
How to use it
Quick steps to get the most out of this utility.
- 1
Calculate net proceeds
Enter home value, mortgage, age, and closing costs.
- 2
Set payment preference
Tenure (lifetime) or term (fixed years).
- 3
Review payment options
All four payout options shown simultaneously for comparison.
- 4
See long-term equity impact
How loan balance grows vs home value over 25 years.
Tenure vs. Term: Choosing Your Payment Structure
Tenure payments are typically lower than term payments for the same proceeds — because they must last indefinitely, potentially 30+ years. A 10-year term concentrates the same proceeds into 120 payments, making each payment larger. The right choice depends on your other income, expenses, and how long you expect to stay in the home. Many borrowers choose tenure to eliminate longevity risk — the guarantee of income no matter how long they live.
Frequently asked questions
How is the tenure payment calculated?+
The HECM tenure payment uses HUD age 100 as the actuarial horizon. PMT = NetProceeds × monthlyAccrualRate / (1 − (1 + monthlyAccrualRate)^−n), where n = (100 − youngstAge) × 12 and monthly accrual rate = (expected rate + 0.5% ongoing MIP) / 12. A 70-year-old has n = 360 months (30 years).
Does the tenure payment stop if I live past 100?+
No — the HECM tenure payment contract guarantees payments for as long as you live in the home, regardless of whether the loan balance exceeds the home's value or you outlive the actuarial calculation. This is one of the most valuable features of the HECM tenure option and is backed by FHA insurance.
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