Mortgage & Real Estate
Reverse Mortgage (HECM) Payout Calculator
Estimate net proceeds from a reverse mortgage after payoff of any existing balance and closing costs.
Formula
From principal limit to net proceeds
Net Proceeds = (Home Value × PLF) − Existing Balance − Closing Costs
Principal limitHome value multiplied by the HUD-determined principal limit factor for your age
Existing balanceAny current mortgage, which must be paid off at closing
Closing costsOrigination fee, mortgage insurance premium, appraisal, and title fees
FAQ
Common questions
HUD publishes official PLF tables based on the youngest borrower’s age and the expected interest rate at closing — they aren’t a simple formula. Ask a HUD-approved reverse mortgage counselor or lender for your PLF, or use HUD’s own HECM calculator, then enter that figure here.
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