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Equity Release Supermarket Equity Release Calculator
Equity Release Calculator
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Equity Release Supermarket Equity Release Calculator
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Mark Gregory
Checked for accuracy and updated on 26 January 2023

Equity Release Calculator

Get a quick estimate of how much tax free cash you could release from your home with our equity release calculator. In just two steps, our calculator can provide the maximum amount you could borrow with no further obligation. For an exact calculation use smartER – the first equity release research tool.


To get an idea of the maximum equity release lump sum you could borrow, you will need to input the following details as a minimum:

  • The value of your property - which must be a minimum of £70,000 and located in England, Wales, Scotland, or Northern Ireland
  • The age of the youngest homeowner – the minimum is 55 for a lifetime mortgage, or age 50 for home reversion plans and RIOs
  • Your postcode - lenders now offer bespoke interest rates and terms based on the location of your property in the UK

Equity Release Supermarket provide a comprehensive range of 12 equity release calculators, all of which calculate the maximum amount you could borrow based on the type of product you are interested in.

The level of detail across these calculators varies dependent upon which calculator is used. For example, our home reversion calculator, requires the percentage of your home you are looking to sell. Our equity release remortgage calculator, on the other hand, requires the interest rate and balance from your existing plan.

Remember – an equity release calculator is only as accurate as the information you provide. The more detail provided, the more accurate the results. Our smartER research tool is our most accurate equity release calculator as it allows you to input the most detailed information.

Based on the details you provide, our equity release calculator will assess the maximum lump sum you could release from your property. By taking the youngest age of the homeowner, the property value, and postcode, the calculator determines which of the 700+ equity release plans offer the highest loan-to-value for you.

For example, if someone age 60 has a property value of £300,000, the equity release calculator will identify that the maximum loan-to-value is 39.2%*. In this case, the maximum lump sum result should be £117,600.

*3rd October 2022 – More2Life Apex Extra

This will depend on the type of later life mortgage you are considering.

We have 12 equity release calculators covering a range of options including Lifetime Mortgages (our most popular product), Home Reversion Plans, Buy-to-let Plans and Retirement Interest Only (RIO) Mortgages.

Each calculator has its own formula to determine how much equity you could release from your property. Learn more about later life lending solutions and how much money you could release on our Equity Release plans page.

Once you know the amount you can borrow, you can find out which equity release plans are available to you and what the interest rates will be.

Our equity release comparison table compares all four later life options – Lifetime Mortgages, Home Reversions, Retirement Interest Only Mortgages and Retirement Mortgages. Here you will find all available products listed with eligibility, interest rates, product features and incentives. You can also request a quote for any product.

Most of our customers are now using our intelligent smartER tool. This places real-time equity release research in your hands – something that was previously only available to advisers. SmartER helps you find the best equity release match for your personal requirements. It provides you with a shortlist of plans and tells you exactly how much you could borrow based on your personal information.

We provide a range of calculators – from our standard equity release calculator to our smartER Equity Release Search.

Not all customers are looking for the same solution, so we’ve built a comprehensive range of calculators to help you find the best option for you. – from analysis calculators to bespoke product calculators.

Nine of our calculators assess how much you can borrow based on the type of product calculator you are using. For example, our enhanced equity release calculator considers a person with poor health and therefore offers a higher maximum lump sum than a standard calculator. Choose which calculator meets your requirements below.

We understand customers are increasingly wanting to use tools to access the impact equity release could have on their, and their beneficiary’s future. Therefore, our 3 analysis calculators help you build an understanding of how releasing tax free cash could be flexed to suit your requirements.

Finally, our intelligent smartER tool helps you conduct your equity release research in your own time to find the exact plans that you are eligible for – including the specific amount providers will lend and the interest rate offered.

Lump Sum

This plan offers a simple solution - providing a one-off, lump sum of money without any need for additional funds in the future. Lump sum plans have the flexibility of choosing whether you want to make repayments, or allow interest to roll-up.

Lump sum calculator

Interest Only

Take a tax free cash lump sum and make monthly interest only repayments for the life of your plan - requiring no proof of income. Repayment of an interest only lifetime mortgage will simply be the original amount you borrowed.

Interest only calculator

Enhanced/Ill-Health

With a history of poor health, enhanced plans could allow you to borrow a higher maximum lump sum due to potential reduced longevity. Completing a health and lifestyle questionnaire will assess the level of your borrowing capacity.

Enhanced calculator

Home Reversion

The original equity release scheme. Sell a percentage, or all of your home to a lender in return for cash lump sum and a lifetime tenancy. These plans can offer a higher lump sum than a lifetime mortgage and guarantee an inheritance.

Home reversion calculator

Buy-to-let

If you have a buy-to-let property or portfolio, you could release money from these investments tax efficiently using specialist buy-to-let equity release plans. Roll-up or voluntary payment options are available.

Buy-to-let calculator

Holiday or second home

With increasing flexibility, if you are age 55+ you can now release equity from a second or holiday home you own, located in the UK. The release can used for any purpose including even buying the property itself.

Second/holiday home calculator

Drawdown

The most popular lifetime mortgage allows you to take an initial tax free lump sum and at the same time create a cash reserve facility which is held by the lender until you wish to drawdown additional money in the future.

Drawdown calculator

RIO Mortgage

A residential interest only mortgage that runs for your lifetime. The amount you can borrow is based on your pre/post retirement income and the lenders affordability checks. You are mandated to make regular monthly payments.

RIO mortgage calculator

Lender specific

Each lifetime mortgage lender has their own maximum loan-to-value criteria. Select your preferred lender to calculate your maximum release of equity.

Lender specific calculator

Switch plans

If you’ve had an equity release plan for some time, you may be able to switch to a better deal and potentially save thousands of pounds over the life of your new scheme. This calculator will identify your break-even point and how much you could potentially save over the long term.

Switch plans calculator

Voluntary repayment

A flexible feature within all equity release plans. They allow you to make ad-hoc repayments between 10%-40% of the original amount borrowed each year with no penalty. These repayments help control the future balance of your plan and can reduce the final balance.

Voluntary repayment calculator

Remaining equity

How much equity and the inheritance you leave your beneficiaries is one of the main questions for anyone releasing equity. Our calculator allows you to create scenarios to understand how much money you could leave based on the amount you borrow, HPI and interest rates.

Equity remaining calculator

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Frequently Asked Questions

Most lenders use 3 simple criteria when considering how much they will lend you with lifetime mortgage (the most popular type of equity release plan). This criteria includes:

  • the age of the youngest borrower (which must be at least 55)
  • the value of the property (which must be at least £70,000 and in the UK)
  • the postcode of the property

There are also specialist plans that will factor in your health too. These are called enhanced equity release schemes. If health factors suggest a potentially shorter life expectancy, providers can lend a higher amount. To calculate the size of your loan, you will need to complete a Health and Lifestyle questionnaire. The more severe your conditions are, the larger the loan will become.

Our exclusive range of calculators enable you to get a quick understanding of how much you could borrow across the complete range of lifetime mortgages, home reversion plans and retirement interest only mortgages (RIOs).

An equity release calculator works very differently from a standard mortgage calculator and as each use a completely different set of criteria.

When calculating residential mortgages, lenders use a range of criteria to calculate how much they will lend you. This includes your income, age, and credit history. Interest rates are typically based on the amount you want to borrow against the value of your home (known as the loan-to-value (LTV). Generally, the higher the LTV, the higher the interest rate.

With a lifetime mortgage, the amount you can borrow is calculated using the age of the youngest applicant, the property value and, in some cases, your postcode and property type. The older you are, the higher the LTV becomes and the larger the maximum equity release will be.

Another important difference between residential mortgage calculators and equity calculators, is that to be eligible for a residential mortgage, you’ll need to pass the individual lenders affordability criteria and credit checks. These do not apply when releasing equity. Your income is not taken into account and your credit status is typically not part of the calculation.

The maximum amount of tax-free cash you can borrow on a lifetime mortgage is calculated using the age of the youngest applicant, the value of the property, and the postcode.

Lenders are becoming savvier in how they calculate loans, and some now factor in whether the property is a flat or maisonette and reduce the loan-to-value accordingly. For instance, Legal & General will only take into account 85% of the property value for flats & maisonettes when applying their LTV calculations.

Aviva will also consider the tenure of the property and whether it’s freehold or leasehold. Should the property be leasehold, Aviva will calculate the maximum loan amount on how long the duration of the remaining lease is. If the lease term is shorter, they won’t lend as much.

The older you are, the more you can borrow. For example, if your home is valued at £300,000, at age 55, you can borrow a maximum of 33.2%* of the property's value (the LTV) - that's a maximum loan amount of £99,600. At 75 it's 54.5%* - or £163,500.

Equity release calculators will only give you a rough idea of the maximum you can borrow with a lifetime mortgage, home reversion plan or retirement interest only (RIO) mortgage. For a specific maximum loan calculation, try our intelligent smartER research tool, which can calculate the maximum loan amount for every equity release scheme based on your personal criteria.

*Based on M2L Apex plan maximum LTV – 1.9.2022

There are a number of factors that will affect your final mortgage balance on the day the equity release loan is repaid.

Lifetime mortgages run until the last person has died or moved into a long-term care facility. From the day the plan starts, to the date of repayment, interest will be charged by the lender. Assuming no repayments are made, interest will therefore compound over that period.

The final calculation of how much the equity release plan will cost is the interest rate charged by the lender against the amount of equity that’s been released. The equity release provider will charge interest on the amount borrowed either monthly or yearly until the loan is repaid.

Should the equity release plan be repaid early, an extra set of costs could potentially be incurred – early repayment charges. These should also always be accounted for when calculating the true cost of how much a lifetime mortgage could cost over your lifetime.

You can request a personalised illustration (KFI) from your Equity Release Supermarket adviser, which demonstrates yearly what your future equity release balance will be.

Interest only lifetime mortgages could be an ideal way to borrow, if you have a good disposable income and could make monthly interest repayments to your mortgage provider.

Interest only (IO) lifetime mortgages work similarly to residential interest only mortgages. By repaying the accruing monthly interest, only the initial amount borrowed is repayable when the plan ends.

The difference between equity release IO plans and residential IO mortgages is the qualifying criteria - as residential mortgages require proof of income and stricter credit checks to qualify. They will potentially offer higher loan-to-values too, which means if affordability is good, they will lend more than an IO lifetime mortgage.

Proof of income is not necessary to calculate the maximum loan size for a lifetime monthly mortgage. Instead, they use the age of the youngest applicant and the property value to calculate how much equity can be released.

The amount you can borrow with an IO lifetime mortgage is slightly less than with a ‘standard’ lifetime mortgage. Based on age 55, you could release up to 27% of the property value, which is lower than its lump sum counterpart. To calculate how much an interest only lifetime mortgage can release, based on your age and property value, try our unique smartER calculator tool.

Lifetime mortgages are the most popular type of plan. They are designed to run for the remainder of your lifetime and are typically repaid when the last homeowner dies or moves into long-term care.

Our calculators for lifetime mortgages are designed to give you a rough idea of the amount you could borrow, and the results are based upon the mortgage running for the remainder of your life. They include a drawdown calculator, standard lump sum calculator and enhanced lifetime mortgage calculator.

Buy-to-let plans are only available from specialist equity release lenders, and they are not actually lifetime mortgages, as they are not regulated by the Financial Conduct Authority (FCA).

The amount you could borrow is determined by the value of the rental property – which must be between £70,000 and £6m and be located in England, Scotland, or Wales. If you have several rental properties, you can apply in multiple on each of the properties in the buy-to-let portfolio.

Lenders’ standard terms for loan-to-value criteria are much lower than for a standard lifetime mortgage. For example, they would typically calculate the maximum borrowings from 14% of the property value at age 55, rising to 45% between ages 90-95.

Home reversion is a different type of equity release scheme and was once the foundation stone of today’s flexible lifetime mortgages. You can read about how home reversion plans work here.

The amount you can receive depends upon the percentage of your property you wish to sell to the home reversion provider. This could be anywhere up to the full 100% of your property value.

If you wish to contribute payments to the home reversion company in the way of rent, this could increase the amount you can borrow. To meet Equity Release Council standards, no rent should be paid. However, companies such as Crown will allow payments if the maximum loan amount needs to be higher.

Please note that home reversion works very differently to lifetime mortgages as you are selling a percentage of your property to a lender in return for a lifetime tenancy. You no longer own your home as you do with a lifetime mortgage. To get an idea of what you could borrow, why not use our home reversion calculator.


Call us anytime

Our range of equity release calculators are designed to give you an idea about how lifetime mortgages and other equity release plans could help you. Please remember that they are only a guide. Your local expert adviser is on hand to answer all your questions and find the right plan for you. If you’re ready, why not call them now?