Mortgage Renewal Calculator 2026
See your new payment at renewal, compare rate scenarios, calculate lump sum prepayment savings, and see how switching to accelerated bi-weekly payments affects your total interest and payoff date.
Renewal Details
How It Works
At renewal, this calculator starts from your remaining mortgage balance and remaining amortization, then applies your new renewal rate to work out what your payment will be going forward. If you enter your previous rate as well, it shows the difference side by side, so you can see exactly how much your payment is changing before you sign anything.
If you add a lump sum, that amount is subtracted from your balance before the new payment is calculated, which lowers both your ongoing payment and the total interest you will pay over the remaining amortization. The calculator shows both effects separately, how much your payment drops and how much interest you save overall, since a lump sum affects both numbers differently depending on how much time is left on your mortgage.
Switching your payment frequency works a little differently. Regular bi-weekly and weekly options simply divide your monthly payment evenly across more payment dates, with no change to your total annual payment. Accelerated bi-weekly and accelerated weekly options instead treat your current monthly payment as the baseline and pay that same amount more frequently, which works out to one extra full monthly payment every year. The calculator applies that extra payment directly against your principal and recalculates your amortization and total interest accordingly.
The rate scenario comparison takes the two alternative rates you enter and runs the same payment calculation for each of them, alongside your actual renewal rate, so you can see all three outcomes side by side rather than having to calculate them one at a time.
Frequently Asked Questions
Should I put a lump sum down at renewal? Putting a lump sum down at renewal reduces your principal directly, which lowers your monthly payment and reduces the total interest you pay over the remaining amortization. Use this calculator to see exactly how much you would save in interest and how many years you could pay off your mortgage earlier.
What is an accelerated bi-weekly payment? Accelerated bi-weekly payments divide your monthly payment by two and deduct that amount every two weeks. Because there are 26 bi-weekly periods in a year rather than 24, you effectively make one extra monthly payment per year, which reduces your amortization and total interest significantly over time.
How much does a higher renewal rate cost? Even a 1 percent rate increase at renewal can add hundreds of dollars per month to your payment and tens of thousands of dollars in total interest over the remaining amortization. Use the scenario comparison section to see exactly what different rates would mean for your specific balance and timeline.
Can I prepay a lump sum without a penalty at renewal? Most lenders allow lump sum prepayments at renewal without the penalty that would normally apply mid-term. Renewal is generally the best window to put extra money against your mortgage, so it is worth confirming your own lender’s specific renewal prepayment terms before your renewal date arrives.
How does the rate scenario comparison work? Enter a lower and a higher rate alongside your actual renewal rate, and the calculator shows the resulting payment for all three side by side. This makes it easy to see exactly what a better or worse negotiated rate would mean before you commit to anything with your lender or broker.
What You Need to Know
Renewal time is one of the few moments in a mortgage where you genuinely have leverage. Your lender wants to keep your business, and shopping your rate with a broker or another bank, even briefly, often results in a better offer than the one that arrives automatically in the mail. Running your numbers here before that conversation gives you a clear target to negotiate against, rather than accepting the first rate offered.
It is also worth thinking about lump sum payments and accelerated payments together rather than as separate decisions. If you have savings available at renewal and can also comfortably handle a slightly higher payment frequency, combining both strategies compounds the interest savings well beyond what either one produces on its own.
One thing this calculator does not do is account for prepayment penalties if you are renewing early, before your current term actually ends, or if your lender’s renewal prepayment allowance has a specific cap. Always confirm your lender’s exact terms directly before making a large lump sum payment, since policies vary and an unexpected penalty can offset some of the savings this calculator projects.
This calculator is provided for general educational purposes and gives estimates only. Actual renewal terms, prepayment allowances, and rates vary by lender and by country, so please speak with your mortgage lender, broker, or a financial advisor before making any renewal or prepayment decisions.