Mortgage Refinance Calculator
Compare your current mortgage to a refinanced one and see if breaking your mortgage makes financial sense.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
$
$
Net Savings After Penalty
$61,959.62
Refinancing saves you money
Current Payment
$2,737.57
Monthly
New Payment
$2,458.57
Monthly
Monthly Savings
$279.00
Per month
Break-Even
18 months
To recoup penalty
Comparison
Current Total Interest$257,015.64
Refinanced Total Interest$190,056.01
Interest Savings$66,959.62
- Penalty-$5,000.00
Net Savings$61,959.62
Frequently Asked Questions
When does it make sense to refinance?
Refinancing typically makes sense when the interest rate savings outweigh the penalty and fees within your remaining term. A common rule of thumb is that a rate reduction of at least 0.5%-1% is needed to justify breaking a mortgage.
How is the mortgage penalty calculated?
For variable-rate mortgages, the penalty is usually 3 months of interest. For fixed-rate, it is the greater of 3 months interest or the Interest Rate Differential (IRD), which can be much higher.
What is break-even in refinancing?
The break-even point is how many months of savings it takes to recoup the penalty cost. If you plan to keep the mortgage longer than the break-even period, refinancing saves you money.
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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