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Canadian Mortgage Calculator

Enter the mortgage amount, the interest rate, the amortization and how often you will pay. You get the payment, the total interest, the time to pay off and the balance at the end of your term.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

In Canada the interest on a fixed rate mortgage is compounded twice a year, not monthly. The calculator turns the yearly rate r into a rate for each payment: i = (1 + r ÷ 2)^(2 ÷ m) − 1, where m is the number of payments a year. The payment is then the standard loan formula P × i ÷ (1 − (1 + i)^−n). Every payment frequency has the same effective yearly rate, (1 + r ÷ 2)^2 − 1, which is 5.0625% for a 5% rate.

An accelerated bi-weekly payment is the monthly payment divided by 2, paid every two weeks, and an accelerated weekly payment is the monthly payment divided by 4. Because that is more than 12 months of payments in a year, the mortgage is paid off sooner. For example, 400,000 at 5% over 25 years has a payment of 2,326.42 a month. Paid as accelerated bi-weekly (1,163.21) it takes 21 years 6 months and saves about 48,000 of interest.

Assumptions and limits

  • The amortization is the total time to repay the mortgage. The term is the length of the rate you agreed (usually 1 to 10 years), after which you renew at a new rate. The result shows what you still owe at the end of the term, assuming the rate stays the same.
  • Variable rate mortgages are quoted differently and the rate changes, so this page is for fixed rates. Mortgage default insurance premiums, property tax, land transfer tax, legal fees and the rules for a down payment are not included.
  • Lenders round payments to the cent. The schedule here keeps the exact value, so the last payment is a little different.

Frequently asked questions

Why is a Canadian mortgage calculated differently from a US one?

In Canada fixed rate mortgage rates are quoted with semi-annual compounding, which follows from the Interest Act. A US mortgage compounds monthly, so the same quoted rate gives a slightly different payment.

What is an accelerated bi-weekly payment?

It is half of the monthly payment paid every two weeks. That makes 26 half-payments, equal to 13 monthly payments a year, so you pay one extra month a year and finish sooner.

What is the difference between the term and the amortization?

The amortization is the whole time to pay off the loan, for example 25 years. The term is the period for which your rate and conditions apply, for example 5 years, and you renew when it ends.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Mortgage amount = 400000; Interest rate (% a year) = 5; Amortization (years) = 25; Payment frequency = Monthly (12 a year); Term (years, 1 to 10) = 5.

  • Payment $2,326.42
  • Payments per year 12
  • Number of payments 300
  • Time to pay off 25 years
  • Total interest $297,925.98
  • Total paid $697,925.98
  • Balance at the end of the term $354,030.03
  • Interest paid during the term $93,615.23

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.