Calculator IRD Penalty
Calculate your Interest Rate Differential (IRD) penalty for breaking a fixed mortgage early. Shows the penalty amount, breakeven timeline, and whether switching lenders actually saves you money.
IRD Penalty Calculator
Calculate your Interest Rate Differential (IRD) penalty for breaking a fixed mortgage early. Shows the penalty amount, breakeven timeline, and whether switching lenders actually saves you money.
IRD Penalty
$16,500
3 Months Interest
$6,363
Actual Penalty
$16,500
Penalty Type
IRD
Penalty Before Statutory Cap
$16,500
Saved by the s.10 Cap
$0
Monthly Savings
$458
Breakeven
36
Net Savings/Loss
$0
This uses a simplified IRD formula. Big 5 banks use a posted-rate formula that typically produces a higher penalty. Request the exact calculation from your lender before making a decision. The Interest Act s.10 cap shown for terms longer than five years applies to individual borrowers and reflects the term as written; it does not apply to mortgages given by a corporation, and after January 1, 2012 it also does not apply to partnerships, business trusts or unlimited liability companies. Exercising the right requires an actual tender of principal, interest to date and three months further interest. This is general information from a mortgage brokerage, not legal advice.
All calculations use Canadian semi-annual compounding per the Bank Act. These results are estimates for educational purposes only and do not constitute financial advice. Speak with a licensed mortgage broker for advice specific to your situation.
API Access for Developers & AI Agents
This calculator is available as a free JSON API. AI agents, chatbots, and developers can send mortgage data and get instant results.
POST /api/calculate/ird-penalty
{
"balance": 500000,
"contractRate": 5.09,
"currentRate": 3.99,
"termYears": 5,
"monthsLeft": 36
}
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Open →This uses a simplified IRD formula. Big 5 banks use a posted-rate formula that typically produces a higher penalty. Request the exact calculation from your lender before making a decision. The Interest Act s.10 cap shown for terms longer than five years applies to individual borrowers and reflects the term as written; it does not apply to mortgages given by a corporation, and after January 1, 2012 it also does not apply to partnerships, business trusts or unlimited liability companies. Exercising the right requires an actual tender of principal, interest to date and three months further interest. This is general information from a mortgage brokerage, not legal advice.