Reverse mortgage calculator: monthly payout from your home
A reverse mortgage lets homeowners aged 60+ draw a monthly amount against their house for up to 20 years and keep living in it; the lender recovers the loan plus accrued interest from the sale after the borrowers' lifetime or if they move out permanently. The payout depends on the home value, the lender's loan-to-value cap and the interest rate.
- Maximum loan (LTV × value)
- ₹72 L
- Total paid to you
- ₹29.86 L
- Balance owed at end (incl. interest)
- ₹72 L
- Equity left for heirs if value stays flat
- ₹48 L
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
The loan including accrued interest may not exceed the LTV cap at the end of the payout period. Monthly payout = future-value annuity that accumulates (with interest at the loan rate) to the cap minus the compounded lump sum: payout = cap × r ÷ ((1+r)ⁿ − 1). Payouts are not taxable income; the house is revalued every few years and payouts may be reset.
Worked example
₹1.2 crore house, 60% LTV, 10.5%, 15 years: cap ₹72 lakh; monthly payout about ₹16,600, ₹29.9 lakh received in total, with ₹72 lakh owed at the end and ₹48 lakh of equity remaining at today's value (more if the house appreciates).
Frequently asked questions
Who is eligible for a reverse mortgage in India?
Homeowners aged 60 or above (spouse 55+) with a self-occupied, self-owned house with clear title; the loan runs up to 20 years and borrowers keep living in the house.
Is the reverse mortgage payout taxable?
No. Payouts are treated as loan instalments, not income; any gain is taxed only when the house is eventually sold.
What happens after the borrower's death?
Heirs can repay the balance and keep the house, or the lender sells it, recovers the loan plus interest and hands any surplus to the heirs.
Sources and what to verify: Reverse Mortgage Loan Scheme (NHB) guidelines.
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.