Free calculator · Renewal, Refinance & Switching
Mortgage Renewal Calculator
Compare your current payment with the payment at a new renewal rate, and see the interest difference over the next term.
Compare your renewal options
When your mortgage term ends you can renew with your current lender or move to a new one. Enter your balance, your current rate, and the rate you are being offered to see how the payment changes and what you would pay over the next term.
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Estimates only. This is not a quote, pre-approval, or approval. Renewal offers, penalties, and fees vary — confirm the current terms with your lender before you decide.
How this is calculated
The tool calculates the monthly payment at both your current rate and the new rate over the remaining amortization using semi-annual compounding: P = L × i ÷ (1 − (1 + i)−n), where i is the effective monthly rate and n is the number of months left. It then simulates the new term payment by payment to total the interest paid during that term and to find the balance remaining when the term ends. At 0% interest the payment is simply the balance divided by the number of months.
What changes at renewal
Renewing at a lower rate reduces your payment and the interest you pay, while a higher rate increases both. Shortening your amortization raises the payment but pays the mortgage off sooner and cuts total interest. Lengthening it lowers the payment but costs more over time. If you switch lenders, you may also face a discharge fee, an appraisal, and legal costs, so compare the full cost rather than the rate alone.
Renewing vs refinancing
A straightforward renewal keeps your balance and amortization and simply continues the mortgage at a new rate. Refinancing means borrowing more or resetting the amortization, and it usually triggers a fresh stress test and possibly a prepayment penalty if you break the current term. If you only need a better rate, a renewal or a switch at maturity is usually simpler and cheaper than a refinance mid-term.
Getting the most from your renewal
- Start shopping a few months before your term ends, since lenders compete for renewals.
- Compare the rate, the term, prepayment privileges, and any fees together, not just the headline rate.
- Ask whether you can increase your payment or make lump-sum prepayments without penalty.
- Confirm whether your new lender requires an appraisal or title insurance, and who pays for it.