Mortgage Penalty Calculator

Estimate your mortgage early termination penalty. Compare IRD vs 3-month interest methods and see if breaking your mortgage makes sense.

Estimate your early termination penalty and break-even analysis

Mortgage Details

Outstanding Balance

Current Interest Rate

Months Remaining in Term

e.g., 36 = 3 years left on a 5-year term

Mortgage Type

Current Posted Rate for Remaining Term

Today's posted rate for a 3-year fixed mortgage

New Rate Available

Rate you can switch to or refinance at

Estimated Penalty

$15,120.00

Whichever is higher: 3-month interest or IRD

3-Month Interest

$5,764.50

$420,000.00 × 5.49% ÷ 12 × 3

IRD Penalty

$15,120.00

★ Applied

$420,000.00 × (5.49% − 4.29%) ÷ 12 × 36

Step 1: Calculate Rate Differential

5.49% (your rate) − 4.29% (posted rate) = 1.20%

Step 2: Interest Loss to Lender

$420,000.00 × 1.20% = $5,040.00 annually

Step 3: Multiply by Remaining Term

36 months = 3.0 years

Total IRD = $15,120.00

Current Payment

$12,668.69

New Payment

$12,392.08

Monthly Savings

$276.60

at 3.99%

Break-Even

54.7 months

You'll recoup the penalty in 5 years and 7 months. You may not save enough before the term ends.

This calculator provides estimates. Contact your lender for exact penalty amounts and current posted rates.