Equity Release Calculator
This calculator shows how a lifetime mortgage balance grows through compound interest over time — and how much of your property’s value would remain for your estate. Enter your loan amount, property value, and number of years, then toggle house price growth on or off to compare scenarios.
This calculator is for illustration purposes only. It does not constitute financial advice. Actual interest rates, property values, and outcomes will vary.
For illustration purposes only — not financial advice. Actual interest rates, property values, and outcomes will vary.
How to use this calculator
Enter the amount you are considering borrowing, your property’s current value, and how many years you want to model. The calculator compounds interest at 6% — a reasonable mid-range illustration rate. Toggle house price growth on to add a projected property value line, and adjust the rate to reflect your view of the market.
Why compound interest matters
Compound interest means each year’s interest is added to the loan balance, and the following year’s interest is charged on that higher balance. The result is that a lifetime mortgage balance grows faster over time, not at a steady rate. A £100,000 loan at 6% becomes approximately £179,000 after 10 years and £321,000 after 20 years — without any repayments.
This is not necessarily a problem if property values rise at a similar or faster rate. The calculator lets you compare both scenarios.
See our guide to how does equity release work? for a full explanation of how interest rolls up, including a worked example table.
What the no negative equity guarantee means
All products from Equity Release Council member lenders include a no negative equity guarantee. This means that even if the loan balance eventually exceeds the property’s sale value — for example, after a long loan period or a fall in house prices — neither you nor your estate can be asked to repay more than the property sells for. The lender absorbs the shortfall.
See our guide to what is a no negative equity guarantee?
Can I make repayments to slow the loan growth?
Some lifetime mortgage products allow voluntary interest payments or partial capital repayments, which slow or stop the loan balance from growing. If preserving equity for your estate is a priority, products with voluntary payment options are worth exploring with an adviser.
See our guide to can I pay back equity release early?
How much can I actually borrow?
The amount available depends on your age and your property value. The older you are, the higher the percentage of your property value a lender will typically offer. See our what age can you get equity release? page for an LTV-by-age table.
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Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026