Mortgage Penalty Calculator | Yvonne Khadra, REALTOR®

Mortgage balance

Mortgage typeYour contract rate

Months left in term

Lender's current rate for remaining term

Use the rate for the term closest to the time you have left.Original rate discount (if any)

Some lenders use posted rates minus your original discount, which makes the penalty larger.

Estimated prepayment penalty

$7,500

Calculated using interest rate differential.

Three months' interest: $3,930
Interest rate differential (IRD)5.24% − 4.24% × 30 months: $7,500
Penalty (greater of): $7,500

Variable-rate mortgages typically charge three months' interest. Fixed-rate mortgages charge the greater of three months' interest or the IRD. Every lender calculates the IRD differently, so ask yours for an exact payout statement. Porting or blending your mortgage into a new purchase can often avoid the penalty.

These tools are for information purposes only and reflect rules as of November 2026. They are not financial advice. Please speak with your bank, mortgage broker, lawyer or accountant before making any financial decisions. The website owner does not guarantee the accuracy of any calculation and is not liable for any loss arising from its use.

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