Calculator Inputs
This page uses a single-column page flow, while the calculator fields switch to three columns on large screens, two on smaller screens, and one on mobile.
Projection Graph
The chart compares projected loan balance, projected property value, and projected remaining equity over time.
Formula Used
- Automatic maximum LTV: The calculator assigns a simple age band. Ages 55–59 use 25%, 60–64 use 30%, 65–69 use 35%, 70–74 use 40%, 75–79 use 45%, 80–84 use 50%, and 85+ use 55%.
- Maximum facility:
Property Value × Applied LTV. - Maximum cash release: If fees are rolled into the loan, the calculator subtracts total fees from the facility first. If fees are paid separately, the full facility remains available as gross cash release.
- Net cash to homeowner:
Gross Release − Existing Mortgage − Fees Paid From Cash. - Opening loan:
Gross Release + Rolled Fees. - Roll-up projection:
Next Balance = Current Balance + (Current Balance × Interest Rate). - Serviced interest: Full annual interest is paid, so the balance remains broadly level unless other assumptions change.
- Partial annual payment:
Next Balance = Current Balance + Interest − Annual Payment. - Future property value:
Current Property Value × (1 + Growth Rate)Years. - Remaining equity:
Future Property Value − Future Loan Balance, floored at zero in the display.
This is a planning model for comparison. Real lenders may use different ages, health factors, product caps, fees, early repayment rules, and underwriting criteria.
How To Use This Calculator
- Enter the property value and any mortgage that must be repaid.
- Add the youngest borrower’s age so the age-based release ceiling can be estimated.
- Input the interest rate, projection years, and expected annual property growth.
- Select either maximum release or a target net cash goal.
- Choose whether fees are added to the loan or paid from available cash.
- Pick a repayment plan: roll-up, serviced interest, or partial annual payment.
- Press the calculate button to display the result above the form.
- Review the graph, detailed result table, and warnings before comparing scenarios.
- Use the CSV and PDF buttons after calculation to export the results.
Example Data Table
| Scenario | Age | Property Value | Existing Mortgage | Applied LTV | Net Cash | Opening Loan | Projected Balance | Projected Equity |
|---|---|---|---|---|---|---|---|---|
| Example 1 | 64 | $350,000.00 | $40,000.00 | 30.00% | $61,455.00 | $105,000.00 | $251,638.61 | $219,415.31 |
| Example 2 | 73 | $500,000.00 | $50,000.00 | 40.00% | $145,905.00 | $200,000.00 | $441,469.68 | $338,359.68 |
| Example 3 | 81 | $650,000.00 | $0.00 | 50.00% | $320,205.00 | $325,000.00 | $325,000.00 | $480,168.35 |
Frequently Asked Questions
1. What does this equity release calculator estimate?
It estimates a possible release ceiling, net cash after clearing a mortgage, fees, projected loan growth, and future remaining equity under your chosen assumptions.
2. Why does age change the result?
Later-life products often increase the allowable loan-to-value as age rises. This calculator uses simple age bands so you can compare scenarios quickly.
3. What happens if I roll fees into the loan?
Rolling fees into the loan preserves more cash today, but it increases the opening balance and may raise future interest costs over the projection period.
4. Can this calculator clear an existing mortgage first?
Yes. The model first allocates release proceeds toward the entered mortgage balance, then shows the remaining cash available to the homeowner.
5. Why might my target cash not be achievable?
Your target may exceed the age-based release ceiling once fees and mortgage repayment are considered. The calculator will cap the drawdown and show a warning.
6. What is the difference between roll-up and serviced interest?
Roll-up adds unpaid interest to the balance, causing compounding. Serviced interest assumes yearly interest is paid, which helps keep the balance steadier.
7. Does this replace lender advice or legal advice?
No. It is a planning tool only. Actual products may include health underwriting, product-specific caps, inheritance protections, and early repayment terms.
8. Why is remaining equity important?
Remaining equity helps you understand the projected inheritance impact and whether the combination of borrowing, fees, and compounding still fits your long-term goals.