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Equity Release Calculator

Calculate how much equity you could release from your home and the total rolled-up interest owed.

Last reviewed 15 August 2026Source: Bank of England — Statistics

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Calculator inputs

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Rates & sources

Standard amortisation formulas used across UK lenders. Interest rates move daily — confirm with your lender or broker.

Source: Bank of England — Statistics — check the linked guidance and any live quote before acting.

When to use this calculator

  • Before comparing mortgage products, brokers or repayment types.
  • When you want to test how a different deposit, rate or term changes the payment.
  • When you need a quick estimate before using a formal illustration or agreement in principle.
  • When you are stress-testing your budget against a higher rate.

Example: checking the size of a lifetime mortgage

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Example: checking the size of a lifetime mortgage
InputValue
Property value£400,000
Age65
Max LTV35%
FocusIndicative release amount versus estate impact

The number that matters is not only how much can be released today, but how quickly rolled-up interest grows the balance later on.

How to read your results

Max Tax-Free Release

Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.

Owed at Age 85

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Interest Rolled Up

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Method & assumptionsAuthoritative sources

This calculator provides an indicative estimate of how much equity you may be able to release from your home through a lifetime mortgage, based on your age and current property value. Lenders typically set maximum loan-to-value ratios that increase with age — older applicants can generally access a higher proportion of their property's value. The figures shown are illustrative; actual offers depend on the specific lender, your health, property type and location, and current market conditions. This tool does not account for arrangement fees, legal costs, or the long-term compounding effect of rolled-up interest, which can significantly increase the total amount owed. Equity release is a major financial decision and UK regulation requires you to receive independent specialist advice before proceeding.

Official references

Common mistakes

  • !Mixing up loan amount and property value, which can distort affordability and LTV.
  • !Using a headline rate but forgetting fees, insurance, taxes or repayment type.
  • !Testing only one term length instead of comparing the payment and total cost together.
  • !Forgetting that a repayment mortgage and an interest-only mortgage produce very different monthly figures.

What to do next

  • Run a second scenario with a higher rate or shorter term so you can see the downside clearly.
  • Compare the result with an affordability or overpayment calculator before applying.
  • Note the monthly payment and total interest for your strongest scenarios before you speak to a broker.
  • Check whether a modest overpayment would reduce total interest — use the overpayment calculator next.

Frequently asked

Maximum LTV for equity release typically ranges from 20–50% depending on your age. Older applicants can usually release a higher percentage.

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