Prepayment penalty estimator
Estimate the greater of 3-month interest or IRD using lender posted vs discounted rates.
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Principal remaining on the mortgage today.
Prepayment penalty estimator
Derive the payout penalty by comparing 3-month interest with posted and discounted IRD scenarios.
How this calculator works
Estimate mortgage break penalties based on term and rate details.
Use it before refinancing or selling a property.
Inputs you will need
- Current interest rate and term
- Remaining balance
- Time left in term
Assumptions and limitations
- Uses simplified penalty calculations.
- Actual lender formulas can differ.
- Confirm with your lender before making decisions.
Example scenarios
Fixed-rate penalty
Estimate IRD vs three-month interest.
Variable-rate penalty
Calculate a three-month interest penalty estimate.
Related tools
Save and compare scenarios
Create a free account to save scenarios, compare options side by side, and share results with your broker team.
Frequently asked questions
Why is the penalty so high?
Fixed mortgages can use IRD formulas that increase penalties when rates fall.
Is the penalty exact?
No. This is an estimate. Ask your lender for an official payout quote.
Can penalties be avoided?
Sometimes by porting or timing the change near maturity.