IRD (Interest Rate Differential) Calculator

Are you curious how to calculate IRD? Refinancing early is simply a numbers game, sometimes it works and sometimes it does.

Here is a calculator that let’s you estimate your mortgage penalty.
Edit the figures in yellow text and press after each edit.


 Current Mortgage Balance


Original Interest Rate %


Current Interest Rate (for remaining term) %


Remaining Term (in months)


3 Months Interest Penalty


Interest Rate Differential (IRD) Penalty

* For fixed-rate mortgages the penalty is typically the greater of 3-months interest or the IRD.
These are rough estimates and will not precisely match your actual penalty.