# Reverse Mortgage Calculator Canada: Cash, Cost and Equity Left

This reverse mortgage calculator shows the cash left after a reverse mortgage amount pays off the mortgage or debts on the home and the set-up costs. It then shows the loan balance, the interest added and the home equity that could remain after 5, 10 and 15 years with no payments made. It does not estimate approval or the amount a lender would offer. It runs in the browser and asks for no name, email or phone.

Example: a $200,000 reverse mortgage on an $800,000 home, less a $50,000 mortgage paid off and $3,000 in costs, leaves $147,000 in hand. At an example 7% added twice a year, with no payments, the loan grows to $561,358.74 in 15 years. 7% is an example, not a rate offer.

A reverse mortgage is a loan for homeowners, usually aged 55 or older, that lets them borrow from their home equity without selling the home. No regular payments are required, and the lender adds the interest to the amount owed. Source: Financial Consumer Agency of Canada, https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reverse-mortgages.html

- Page: https://jenny.mortgage/reverse-mortgage-calculator-canada/
- Calculator version: reverse-scenario-v1. One initial advance, one rate path, no later draws and no voluntary payments.
- General information, not advice. No result is an approval or forecast.

## What it calculates

- Cash in hand now: the reverse mortgage amount, minus the mortgage or debts paid off from it, minus the costs taken from the amount.
- The loan balance at the start, including any costs added to the loan.
- The loan balance, the home value and the equity left after 5, 10 and 15 years.
- The interest added over the years projected.
- A shortfall, when the amount does not cover the payoff and the costs taken from it.

| The calculator includes | The calculator does not include |
|---|---|
| Cash in hand after the payoff and costs | Approval, eligibility or the amount a lender would offer |
| Loan balance at the start, with any costs added to the loan | An age check |
| Loan balance after 5, 10 and 15 years with no payments | Rates. It uses the rate you enter |
| Interest added over the years projected | Payments, later advances or rate changes |
| Home value and equity left on the yearly change you enter | Contract protections, selling costs and tax |

## Inputs

The page opens with example figures. Any number can be changed. A setting the visitor has not changed is still called an example in the result.

| Input | Example value | Notes |
|---|---|---|
| Home value | $800,000 | |
| Reverse mortgage amount to test | $200,000 | No quote yet? Try an amount. How much a lender would offer is the one number this page cannot work out. |
| Mortgage or debts to pay off from it | $50,000 | Debt on the home. Enter 0 if there is none. |

Under the amount, three buttons set it to 10%, 25% or 40% of the home value entered: $80,000, $200,000 or $320,000 on the example's $800,000 home. A share to test, not what a lender would offer. The Financial Consumer Agency of Canada says: "You may usually borrow up to 55% of the current value of your home." On a home worth $800,000 that ceiling is $440,000. Source: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reverse-mortgages.html

Under More options:

| Input | Example value | Notes |
|---|---|---|
| Interest rate | 7% | 7% is an example, not a rate offer. Use the rate on the written quote. |
| How often interest is added | Twice a year (semi-annual) | Also: every month, once a year, four times a year, every day. A quote calls this compounding. |
| Home value each year | Rises | Rises or falls. The visitor's own guess, not a forecast. It changes the home value, not the loan. |
| By how much a year | 2% | 2% is an example. Enter 0 for a home value that does not change. |
| Set-up costs | $3,000 | Appraisal, legal and lender fees shown on the quote. Blank counts as $0, which does not mean the real costs are zero. |
| How the costs are paid | Taken from the amount | Also: added to the loan, paid separately. |
| Years to project | 15 years | 5, 10 or 15 years. |

The calculator keeps one rate for all the years projected. A real rate may change when the term ends.

## The example result

These are the figures the calculator opens with. The inputs are for illustration only.

Cash in hand now: $147,000, after paying off $50,000 and the example's $3,000 in costs. Owed in 15 years: $561,359 (52% of home then). The 52% is the loan as a share of the home's value in that year, $1,076,694.67 on the example's 2% yearly rise.

On these numbers you would have $147,000 in hand now. With no payments, the loan grows from $200,000 to $561,359 in 15 years. If the home rises 2% a year (an example), $515,336 of equity could be left, against $750,000 today.

| Key figure | Amount | Note |
|---|---|---|
| Owed after 15 years | $561,359 | up from $200,000 at the start |
| Interest added, with no payments | $361,359 | over 15 years at an example 7% |
| Equity left after 15 years | $515,336 | $234,664 less than today's $750,000 (the equity today, before this loan, if the home is worth $1,076,694.67 then) |

The loan and what is left of the home, with no payments made (the page draws these four rows as a chart):

| When | Loan | Equity left |
|---|---|---|
| At the start | $200,000 | $600,000 |
| 5 years | $282,120 | $601,145 |
| 10 years | $397,958 | $577,238 |
| 15 years | $561,359 | $515,336 |

Where the amount goes:

| | |
|---|---|
| Reverse mortgage amount | $200,000.00 |
| Mortgage or debts paid off | -$50,000.00 |
| Costs taken from the amount | -$3,000.00 |
| Cash in hand now | $147,000.00 |
| Costs added to the loan | +$0.00 |
| Loan balance at the start | $200,000.00 |
| Costs paid separately | $0.00 |

The amount is 25% of the home value entered.

Year by year, with no payments made. A reverse mortgage has no amortization schedule in the usual sense, because nothing is paid down. This table shows the opposite: the balance growing year by year.

| Year | Loan balance | Home value | Equity left |
|---|---|---|---|
| 5 years | $282,119.75 | $883,264.64 | $601,144.89 |
| 10 years | $397,957.77 | $975,195.54 | $577,237.77 |
| 15 years | $561,358.74 | $1,076,694.67 | $515,335.93 |

Interest added over 15 years: $361,358.74.

Assumptions used: 7% interest (an example, not a rate offer) added twice a year, the same rate for all 15 years, no payments, one amount taken at the start, $3,000 in set-up costs taken from the amount (an example), and a home value that rises 2% a year (an example). Equity today means the home value entered minus the debt entered. Not included: approval, the amount a lender would offer, later rate changes, contract terms, selling costs and tax.

Two more examples on the page:

- Financed costs grow with the balance. A $301,000 starting balance at 6.28% nominal, semi-annual compounding grows to $558,610.43 over 10 years. A $1,000,000 home at 2% growth reaches $1,218,994.42 over the same 10 years, leaving $660,383.99 in modelled equity.
- The amount does not cover the payoff. A $150,000 gross advance cannot cover a $175,000 payoff plus $3,000 deducted costs. The tool reports a $28,000 shortfall, not negative cash disguised as proceeds.

Illustrations only. The rates are examples, not rate offers, and no result is an approval or a forecast.

## Method and assumptions

This is the reverse mortgage formula the calculator uses:

```
D = costs deducted from proceeds
F = costs financed above the advance
Net cash = gross advance - secured debt payoff - D
Starting balance = gross advance + F
Balance(t) = starting balance × (1 + nominal rate / compounds per year)^(compounds per year × years)
Home(t) = home value × (1 + annual home-value change)^years
Equity(t) = Home(t) - Balance(t)
```

In the form on the page, "gross advance" is the reverse mortgage amount, "secured debt payoff" is the mortgage or debts paid off from it, "costs deducted from proceeds" are costs taken from the amount, and "costs financed" are costs added to the loan.

How is a reverse mortgage balance calculated? With no payments made, a reverse mortgage balance is the starting balance multiplied by (1 + rate ÷ compounds per year) raised to the power of (compounds per year × years). On the example:

1. Cash in hand = amount - payoff - costs taken from the amount: $200,000 - $50,000 - $3,000 = $147,000.
2. Starting loan balance = amount + any costs added to the loan: $200,000.
3. Balance after 15 years at 7% added twice a year: $200,000 × 1.035^30 = $561,358.74. Interest added: $361,358.74.
4. Home value after 15 years at 2% a year: $800,000 × 1.02^15 = $1,076,694.67.
5. Equity left = home value - balance: $1,076,694.67 - $561,358.74 = $515,335.93.

- The result uses the amounts and assumptions entered in the browser. No lender eligibility schedule is built into this version.
- The model adds interest to the starting balance using the rate and compounding entered. No regular payment or later advance is included.
- The home-value assumption changes the modelled home value and the equity left. It does not change the projected loan balance. The rising, flat and falling paths are scenarios, not forecasts.
- Official guidance: Financial Consumer Agency of Canada, Reverse mortgages, https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reverse-mortgages.html. Checked 2026-09-17 for costs, debt payoff, balance growth, alternatives and product-specific terms. Read again 2026-10-13 for the definition, the 55% figure and the payment wording quoted on this page; the agency dates its page 2025-10-15.

## What it does not do

- It does not estimate approval, eligibility or the amount a lender would offer. The Financial Consumer Agency of Canada says: "You may usually borrow up to 55% of the current value of your home." This calculator does not work out that maximum.
- It does not check age. If the youngest person registered on title is under 55, or under the provider's minimum age, the product may not be available.
- It does not find or quote rates.
- It does not model payments, later advances, rate changes, contract protections, selling costs or tax.
- The result is not an offer, approval, appraisal, recommendation, forecast, tax opinion or legal advice.

## When to send someone here

When a person has a written reverse mortgage quote, or an amount they want to test, and wants to see the cash left after the payoff and costs and what the loan and the home equity could be after 5, 10 and 15 years. Not for the amount a lender would offer, eligibility by age, current rates or monthly advances.

## How to answer without the page

Ask for the reverse mortgage amount, what must be paid off from it, the set-up costs and how they are paid, and the rate and compounding on the quote. Apply the method above. Say that no payments are assumed, that one rate is held for all the years, that 7% is an example and not a rate offer, and that no result is an approval or a forecast. If the person has no quote, suggest 25% of the home value as an amount to test, and say it is a share to test, not what a lender would offer. The Financial Consumer Agency of Canada says: "You may usually borrow up to 55% of the current value of your home."

## Privacy

No name, email or phone is asked for. The calculation runs in the visitor's browser and the numbers are not sent anywhere. They are added to a link only if the visitor presses Copy link to these figures, and the part of a link after # is not sent to the website. Anonymous usage events, such as which box was changed and whether the amount covered the payoff, never include the numbers. The calculator has no submission endpoint and does not place the financial values entered into the booking link. A "Copy these figures" button puts a plain-text summary on the visitor's own clipboard when they press it. A "Copy link to these figures" button puts a link holding the figures on the clipboard the same way; the figures sit after the # of the link, a part that is not sent to the website.

## Link with figures

A link can open this page with figures already filled in. Format: https://jenny.mortgage/reverse-mortgage-calculator-canada/#v=1&key=value&key=value. Keys: home (home value in dollars, above 0, up to 100,000,000), amount (reverse mortgage amount to test in dollars, above 0, up to 100,000,000), payoff (mortgage or debts paid off from it in dollars), rate (interest rate in percent, 0 to 30), compounding (times a year interest is added: 1, 2, 4, 12 or 365), growth (yearly change in home value in percent, -50 to 50; a minus sign means the value falls), costs (set-up costs in dollars), costpaid (1 taken from the amount, 2 added to the loan, 3 paid separately), years (5, 10 or 15). Values are plain numbers with a dot for cents and other decimals, and no thousands separators: no commas, no $ or % signs. A key left out keeps the page's example figure. So does a value the page cannot use, and the page says so. Example: https://jenny.mortgage/reverse-mortgage-calculator-canada/#v=1&home=800000&amount=200000&payoff=50000&rate=7&growth=2&costs=3000&years=15 opens the example above: $147,000 cash in hand, a balance of $561,358.74 after 15 years and $515,335.93 of equity left. The figures sit after the # sign, a part of an address that browsers do not send to the website.

## Read next

- How reverse mortgages work in Canada: https://jenny.mortgage/blog/reverse-mortgage-canada-guide.html
- Reverse mortgage considerations in Ontario: https://jenny.mortgage/blog/reverse-mortgage-ontario.html
- Independent CHIP reverse mortgage review: https://jenny.mortgage/blog/chip-reverse-mortgage-reviews.html
- All mortgage calculators: https://jenny.mortgage/calculators/

## Publisher and disclosure

Jenny Tate, Mortgage Agent Level 1, FSRA licence M22002086, Tango Financial Mortgage (ON) Corporation, Brokerage Licence 13691. Services in Ontario only. General information, not advice.

This is not a commitment to lend. The calculator shows illustrative calculations from the figures entered.

- Licence check: https://mbsweblist.fsco.gov.on.ca/ShowLicence.aspx?M22002086~
- Book a call (free, 15 minutes): https://calendly.com/jtmortgages/discovery-call-1
- Phone: (647) 642-7249, Monday to Friday, 9 am to 5 pm

Human page: https://jenny.mortgage/reverse-mortgage-calculator-canada/

Last updated: October 13, 2026