Mortgage Penalty Calculator: Early Repayment Charge Estimator

Your details

Fixed-rate mortgages use the higher of IRD or 3-months interest. Variable-rate closed mortgages typically use 3-months interest only.
The remaining principal on your mortgage at the time you break the term.
The annual interest rate locked in on your current mortgage contract.
%
The lender's current advertised (posted) rate for a term matching your remaining months. Used only for the IRD calculation.
%
How many months are left before your mortgage term matures. For example, if 3 years remain, enter 36.
months
Currency
Estimated penaltyHigh penalty
$11,700.00

The prepayment charge your lender is likely to apply

Three months interest$4,125.00
Interest Rate Differential (IRD)$11,700.00
Method appliedInterest Rate Differential (IRD)
Rate differential1.3%
Term remaining3 yr
3 Months Interest$4,125.00
IRD$11,700.00
Penalty Charged$11,700.00

Estimated penalty: $11,700.00 (Interest Rate Differential (IRD))

  • Your estimated prepayment penalty is $11,700.00, calculated using the Interest Rate Differential (IRD) method.
  • The IRD charge ($11700.00) exceeds three months interest ($4125.00) because there are 36 months remaining and your rate is above the current posted rate.
  • With more than 2 years remaining, penalties tend to be significant. Consider whether potential interest savings from a lower rate outweigh the penalty before deciding to break.
  • Ask your lender for their exact posted rate for the closest matching term and whether any prepayment privileges reduce the penalised balance before finalising your decision.

Next stepCompare this penalty against your potential savings from refinancing at a lower rate. A mortgage broker can pull your lender's exact posted rates and run an official calculation at no cost.

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