Equity release calculator – find out how much you could release

How to use our free equity release calculator

Our equity release calculator will quote you the amount of equity you can release from your home based on the age of the youngest homeowner and the value of your property.

You simply need to add:

• Your estimated property value - if you not sure how much your property is currently worth, you can get a free valuation from Zoopla or an estate agent like Yopa
• Your postcode
• Your name
• The age of the youngest homeowner
• Your email address
• Your phone number

How is equity release calculated?

The amount of cash you can release with equity release is calculated by taking the following information into account:

• Your age (or the age of the youngest homeowner if the mortgage is to be in joint names)
• The value of your property
• The type of property you have and whether it is leasehold
• Your health
• The type of lifetime mortgage you choose
• The interest rates available

As an initial guide, our equity release calculator calculates the amount you could potentially release based on your age and property value. A qualified IFA or broker can give you an accurate calculation based on more personal details such as the type of property you own and your health. This will be important as it will dictate the lifetime mortgages available to you and whether you are entitled to better rates with an enhanced lifetime mortgage.

What percentage of your home's equity could you release?

Using the information above, the calculator will work out the maximum percentage you can borrow against your home, known as the ‘loan to value’ or LTV. Multiplying this percentage by the value of your property will calculate the maximum amount you can release.

Ashley Shepherd

Over 30 years’ experience in financial services including retirement and later-life planning.

Our equity release expert’s view

Equity release is a significant long-term financial commitment that allows homeowners aged 55 and over to unlock tax-free cash from their property while retaining the right to live in it.

For those of you considering it, the key issues are understanding compound interest, the impact on inheritance, eligibility criteria, and how flexible features such as drawdown or voluntary repayments may affect long-term cost.

An equity release calculator is helpful at this stage because it provides an immediate estimate of how much could potentially be released based on age and property value, giving structure to what can otherwise feel like an abstract decision.

I think that a calculator is a valuable starting point for education and scenario planning, but it should always be followed by personalised advice to assess suitability and long-term implications properly.

How is the interest calculated on equity release?

The interest charged on a lifetime mortgage is compound interest, which means it is calculated by adding interest not just to the loan but to the interest already accrued. To keep costs down, you can choose to repay some or all of the interest or make adhoc repayments.

Use our compound interest calculator to see how much interest will be charged throughout the life of the loan and how much money you could save by making repayments.