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Free prepayment penalty calculator for finance & housing — estimate common penalty structures before you refinance, sell, or make a large principal paydown. Educational only; verify with your lender.
Last updated: April 18, 2026
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Estimated penalty
$2,600
Prepayment applied
$80,000
Prepay + penalty
$82,600
Model
Penalty modeled as 6 month(s) of interest on the prepayment amount at 6.5% APR (common structure; actual formulas vary).
Disclosures
Model
N × monthly interest
Uses your note rate on the amount being prepaid (simplified).
Model
% × prepay
Helpful when the contract ties the fee to the principal you accelerate.
Model
% × remaining
Some riders use remaining balance at the time of prepayment (verify your note).
Logic
min(prepay, balance)
If you enter more than the balance, we treat prepay as the full payoff amount.
View
One number
See principal applied to the loan plus the modeled penalty in one line.
Disclaimer
Illustrative
Official payoffs include per-diem interest and lender-specific fees.
Default: $385,000 balance, $80,000 prepayment, 6.5% APR, 6 months of interest on the prepayment:
Illustrative penalty
~$2,600
We first cap your prepayment so it cannot exceed the remaining balance you enter. Depending on the penalty structure you choose, we either multiply the prepayment by a percentage, multiply the remaining balance by a percentage, or compute months of interest on the prepayment amount using your stated annual interest rate. The total cash outlay is the effective prepayment plus the modeled penalty.
Effective prepayment = min(requested prepayment, remaining balance)Months interest penalty ≈ (APR / 12) × prepayment × monthsPercent penalty = rate × balance or prepayment (per selection)Commercial yield maintenance and defeasance use different formulas; see your loan officer for those scenarios.
Compare break-even ideas with our mortgage points calculator
Explore mortgage recasts if you are making a large paydown without paying off the loan.
Get a Custom CalculatorIf your note instead specifies a flat percentage of the outstanding balance, switch to the percent-of-balance mode and align the percentage with your documents.
Not a payoff quote from your lender—confirm all amounts before wiring funds.
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