Use the Equity Release Calculator UK to illustrate how a lifetime mortgage balance could grow through compound interest and how much home equity might remain after a selected period. It does not estimate provider eligibility or give a product recommendation.
Enter your projection details
This projection does not apply any no-negative-equity guarantee or early repayment charge. Your provider’s terms control the actual outcome.
What does the Equity Release Calculator UK show?
The calculator models a lifetime mortgage where interest is charged monthly. The initial loan includes any existing mortgage repaid, extra cash released and fees added. If no monthly interest is paid, interest rolls up and compounds.
It also projects the property value using the growth rate entered and compares that value with the future loan balance. Property prices can rise or fall, so test more than one scenario.
Monthly balance = previous balance + interest − monthly payment
Remaining equity = projected property value − projected loan balance
Why compound interest matters
Interest roll-up means interest is charged on earlier interest as well as the original borrowing. Over a long period, the debt can grow to several times the amount initially borrowed. Making permitted interest payments can slow or stop that growth, but product rules differ.
Worked example
A £50,000 lifetime mortgage at 6% with no repayments grows to £122,704.68 after 15 years when interest is compounded monthly. If the £300,000 property does not change in value, projected remaining equity is £177,295.32 before selling costs and provider terms.
What affects the amount available?
Provider eligibility commonly depends on the youngest applicant’s age, property value, property type, location, health and product limits. This calculator deliberately does not guess a maximum release percentage. Obtain a personalised illustration from an authorised adviser or provider.
Payments and drawdown
Some lifetime mortgages allow voluntary interest or capital payments. Drawdown plans release money in stages, so interest is generally charged only after each amount is taken. This calculator models one initial release rather than future drawdowns.
Property growth assumptions
| Scenario | Possible effect |
|---|---|
| Property value rises | More equity may remain, but growth is not guaranteed |
| Property value stays level | Rolled-up debt takes a growing share of the property |
| Property value falls | Remaining equity can reduce more quickly |
Important alternatives to consider
- Downsizing to a less expensive property
- A retirement interest-only mortgage
- Using savings or pension income
- Family assistance where appropriate
- Releasing a smaller amount or using drawdown
Authoritative guidance
Related UK calculators
Frequently asked questions
Does this calculate how much equity release I qualify for?
No. Provider limits depend on age, property and personal circumstances. The tool projects debt from figures you enter.
Why does the balance grow so quickly?
Rolled-up interest compounds, meaning interest is charged on previous interest.
Can I pay interest each month?
Some products allow payments. Enter an illustrative monthly payment, but check the provider’s exact rules.
Does the calculator apply a no-negative-equity guarantee?
No. It shows any mathematical shortfall before guarantees or provider terms are applied.
Could equity release affect benefits or inheritance?
Yes. It can affect means-tested benefits and reduce the value of the estate.
Important: This is an illustration, not regulated financial advice or a lender quotation.