What is the Downsizing vs Equity Release Calculator?
The Downsizing vs Equity Release Calculator helps you compare two common retirement housing options: selling your home and downsizing, or staying put and releasing equity from your current property. It shows how each route affects your immediate cash position, your ongoing housing costs and your longer-term financial flexibility.
How the Calculator Works?
This calculator compares two paths side by side.
In the downsizing scenario, it estimates how much cash you could release by selling your current home, buying a cheaper property and paying moving costs. It also compares the annual running costs of your current home with the downsized property to show whether downsizing actually reduces your ongoing outgoings.
In the equity release scenario, it estimates how much cash may be available through equity release after fees and any existing mortgage constraints. It then projects how the loan balance may grow over time as interest rolls up, and how this affects your remaining equity.
You can model the released cash in two ways:
- Invested, where the cash remains part of your long-term wealth
- Spent, where the cash is excluded from long-term totals for a cleaner retirement-spending comparison
The calculator then projects both paths over time using your chosen assumptions for property growth, interest rates and investment returns, helping you see which route appears stronger under different scenarios.
Step One: Enter Property Values and Costs
Add your current home value, downsized property value, transaction costs and annual running costs for each property.
Step Two: Add Equity Release and Projection Assumptions
Enter your age, desired cash release, fees, interest rate, projection length and property growth assumptions. Choose whether released cash is treated as invested or spent.
Step Three: Compare Cash Now, Costs and Long-Term Position
Review the immediate cash available, annual cost difference and year-by-year comparison to see which route looks stronger under your assumptions.
Disclaimer: This calculator provides illustrative projections only and does not constitute financial advice, a lender quote or a product recommendation. Equity release terms, housing costs and future property values vary. Use this tool for scenario planning and take the results into a regulated advice conversation.
What does retirement mean to you?
Traditional retirement is broken. Understand how our calculator enables you to live a better life now vs later.
Retire from corporate work?
Use the tool to utilise how you can step away from the corporate world and live life on your own terms.
Work less, live more
See how part-time or project-based work can bridge your income gap while giving you more time for life.
Freedom through planning
Understand how your savings, spending and investments can work together to buy back your time.
Test-drive retirement early
Model scenarios that let you experience elements of retirement before fully stepping away.
What is the Downsizing vs Equity Release Calculator?
It is a UK-specific retirement housing decision tool that compares downsizing and equity release by showing immediate cash, ongoing cost differences and the longer-term financial impact of each route.
What does this calculator help me decide?
It helps you compare whether downsizing or equity release gives you more usable cash, lower ongoing housing costs and a stronger long-term position in retirement.
What is the difference between “cash now” and long-term position?
Cash now shows the immediate amount available under each route. Long-term position reflects what happens over time after property growth, housing costs and equity release interest are taken into account.
Does downsizing always reduce annual spending?
No. In many cases it does, but not always. The calculator shows the annual running-cost difference based on your actual inputs.
How is equity release treated in the model?
The calculator estimates available cash after fees and then projects the effect of interest rolling up over time on the loan balance and remaining equity.
What does “invested” versus “spent” cash mean?
If released cash is marked as invested, it remains in your long-term totals. If marked as spent, it is excluded from long-term totals, which is often better for like-for-like retirement spending comparisons.
Why do assumptions matter so much?
Small changes in property growth, equity release interest or how released cash is used can materially change the result. That is why the calculator is best used with conservative, central and optimistic cases.
Is this a recommendation to downsize or use equity release?
No. It is a structured comparison tool, not personalised advice. It helps you understand the trade-offs more clearly before seeking professional advice.
Does it include emotional or lifestyle factors?
No. It does not capture attachment to your home, inheritance goals, maintenance stress, local community ties or the personal value of staying put. Those still matter.
What should I look at first in the results?
Start with cash now, then annual cost difference, then who is ahead at your chosen year, and finally the trend over time rather than just the end point.
Is my data stored?
No. All calculations run locally in your browser and no personal data is transmitted.