This free equity release calculator estimates the tax-free cash you can release from your home based on your age and property value. No personal details required, and it includes inheritance protection options.
How does equity release work?
Equity release is a type of loan secured against your home that allows you to unlock the value you have built up over the years. You receive your equity as a tax-free lump sum or in smaller payments, and the loan is repaid — along with accumulated interest — when you die or move into long-term care.
The two main types of equity release are:
- Lifetime mortgage — the most common type; you take out a loan secured on your home while retaining ownership. Interest rolls up over time and is repaid when the property is sold.
- Home reversion — you sell all or part of your home to a provider in exchange for a lump sum or regular payments, while retaining the right to live there rent-free. Less common than lifetime mortgages.
How much equity can I release from my home?
The amount you can release depends on the value of your property and the age of the youngest homeowner. The maximum loan-to-value (LTV) typically ranges from 29.6% at age 55 to 58.4% at age 83.
Example: If you are 65 years old with a property valued at £300,000, the typical LTV at age 65 is 38.80%. You could release up to £116,400 in equity.
Equity release LTV by age
| Youngest Homeowner Age | Maximum LTV |
|---|---|
| 55 | 29.60% |
| 58 | 32.20% |
| 60 | 34.10% |
| 63 | 36.80% |
| 65 | 38.80% |
| 68 | 41.80% |
| 70 | 44.00% |
| 73 | 48.30% |
| 75 | 51.30% |
| 78 | 56.00% |
| 80 | 58.10% |
| 83 | 58.40% |
| 85 | 58.40% |
| 90+ | 52.00% |
LTV percentages are based on typical market rates and vary by lender. After age 85, available LTV generally decreases.
Is equity release a good idea?
Whether equity release is right for you depends on your personal circumstances. It can be a good option if you:
- Need funds in retirement but do not want to move or downsize
- Want to help family members get on the property ladder with an early inheritance
- Need to pay for home renovations, care costs, or consolidate debt
- Have no dependants who rely on inheriting your full property value
However, equity release has important drawbacks:
- Compound interest — interest rolls up over time, and the total amount owed can grow significantly. On a £100,000 release at 6% interest, the debt roughly doubles every 12 years.
- Reduced inheritance — the value left for your heirs will be lower
- Impact on benefits — releasing equity could affect your eligibility for means-tested benefits
- Early repayment charges — if you want to repay the loan early, significant penalties may apply
Always seek independent financial advice before proceeding with equity release.
Equity release with inheritance protection
Many equity release plans offer inheritance protection, which lets you ring-fence a percentage of your property’s value for your heirs. For example, you might protect 25% or 50% of the property value.
How it works: If your home is worth £300,000 and you protect 25%, then £75,000 is guaranteed for your heirs regardless of how much equity you release. The remaining £225,000 is used to calculate your maximum release amount.
Note that choosing inheritance protection reduces the amount you can release.
How interest compounds on equity release
Since most equity release plans require no monthly repayments, interest compounds on the original loan plus any previously accumulated interest:
| Amount Released | Interest Rate | After 10 Years | After 20 Years |
|---|---|---|---|
| £50,000 | 5.0% | £81,445 | £132,665 |
| £100,000 | 5.0% | £162,889 | £265,330 |
| £100,000 | 6.0% | £179,085 | £320,714 |
| £150,000 | 5.0% | £244,334 | £397,994 |
All plans regulated by the Equity Release Council include a no-negative-equity guarantee, meaning you (or your estate) will never owe more than the property is worth.
No personal details required
This equity release calculator does not require any personal details. It is free to use with no obligation — simply enter your age and property value to see an estimate.
Frequently asked questions
How much equity can I release from my home?
It depends on your age and property value. At age 65 with a £300,000 home, you could release approximately £116,400 (38.80% LTV).
Is equity release a good idea?
It depends on your circumstances. It provides tax-free cash but reduces your estate. Always seek independent financial advice.
Do you have to pay back equity release?
The loan is repaid when you die or move into care, typically by selling the property. No monthly repayments are required.
What is the minimum age for equity release?
You must be at least 55 years old to qualify.