⚠️ Mortgage Penalty Calculator
Estimate what you might owe in a prepayment penalty for paying off or refinancing your mortgage early.
What Is a Prepayment Penalty?
Some mortgages charge a fee if you pay off or refinance the loan earlier than agreed, to compensate the lender for interest they expected to earn. Not all loans have this penalty, and rules vary widely by lender, loan type, and state, so always check your loan documents for the exact terms.
The Formula
Lenders commonly use one of two methods. The percentage-of-balance method charges a flat percentage of your remaining loan balance: Penalty = Balance × Percentage. The months-of-interest method charges a set number of months of interest at your current rate: Penalty = Monthly Interest Amount × Number of Months. This calculator shows both so you can compare against what your loan agreement specifies.
This tool is for general planning and educational purposes only. Your actual penalty, if any, is defined by your promissory note or loan agreement, and this estimate should not be treated as a final figure.