An early payoff charge comes from your loan documents. This calculator estimates the charge for a planned sale or refinance using the structure, dates and calculation basis you enter. It does not determine whether a penalty applies or whether a particular provision is enforceable.
What you enter
Have the signed note and any prepayment addendum ready. Enter the loan date used to measure the penalty period, proposed payoff date, calculation balance and the applicable percentage or other calculation terms. Record whether a sale, refinance or partial principal payment triggers the provision.
If the provision uses a declining percentage schedule, enter each period and the applicable percentage exactly as written. Do not assume the calculation uses your original loan balance, your current balance or the amount prepaid. The documents decide that basis.
Some structures need a different calculation from a simple percentage of principal. For those, use the lender or servicer's written calculation rather than forcing the contract into this tool. Ask an attorney if you need help interpreting the provision or its legal effect.
Example
Assume a hypothetical clause charges 3% of the principal being paid off during its first stated period, 2% during the second and 1% during the third. These are made up contract terms, not a typical schedule or a statement about any lender.
If the calculation balance were $300,000 in each period, the estimated charges would be $9,000, $6,000 and $3,000. Holding the balance constant isolates the effect of the schedule. Your actual balance may change before the payoff date.
The example does not include accrued interest, release fees, unpaid charges or transaction costs. Those can affect the total payoff or net proceeds and need separate entries in your exit budget.
What would an early sale cost?
If a sale triggers the entered clause, the calculator applies the relevant period and calculation terms. The result is the modeled prepayment charge, not the total cost of selling.
Do not assume a sale is exempt just because a refinance is the transaction mentioned in a conversation. Check the written provision.
What would an early refinance cost?
If refinancing triggers the clause, the same date and calculation basis review applies. Add the resulting charge to the refinance costs when comparing the transaction.
See DSCR Prepayment Penalties: Calculate Your Exit Cost for the wider exit discussion. DSCR Refinance Proceeds Calculator handles cash left after payoff and other costs.
How does the penalty structure change the cost?
A percentage schedule uses the applicable percentage and defined principal basis. A different structure can produce a different result even on the same balance and date.
This tool supports a simple percentage schedule only unless a separate verified calculation module is supplied. It should direct unsupported structures to the written payoff calculation.
What is the cost at year 1, 2 and 3?
Enter the dates and balances you want to compare. The calculator shows the applicable period and estimated charge for each date.
The word year must follow the contract's timing definition. A calendar year, an anniversary period and a payment count are not automatically interchangeable. Request an updated payoff statement before relying on an estimated exit cost.
This calculator gives an estimate only. It is not a loan offer or approval.
Sources
- Fannie Mae Mortgage Calculator. Disclaimer; How to use this calculator. Checked October 16, 2026.