Mortgage payment calculator
Enter the mortgage amount, rate and amortization, choose how your lender compounds and how often you pay, and see the payment, the balance at renewal and the interest.
Free · no signup Runs in your browser
How is a Canadian mortgage payment calculated?
It is the level payment that clears the loan over the amortization at your rate, with interest compounded the way your contract says. Fixed rates are conventionally compounded semi-annually, which fits the Interest Act's wording that a mortgage state its rate "calculated yearly or half-yearly, not in advance". Accelerated bi-weekly payments are half the monthly payment every two weeks, which adds up to one extra monthly payment a year.
Why we built this calculator
Most mortgage calculators on the internet are built for American mortgages, which compound monthly. A Canadian fixed-rate mortgage is conventionally quoted with semi-annual compounding, so the same 5% rate gives a slightly lower payment here than the US-style calculation would. On a $450,000 mortgage at 5% over 25 years, that is about $13.43 a month, or $4,030 over the amortization.
This calculator lets you set the compounding and the payment frequency separately, because they are separate choices. It also shows the balance at the end of your term, which is what you actually renew against. For the background on compounding, read why Canadian mortgages compound semi-annually.
It runs in your browser. Nothing you enter is sent anywhere, and there is no sign-up.
When to use it
- Comparing a quote with a different payment frequency before you sign
- Checking what accelerated bi-weekly payments actually save
- Finding the balance you will owe when the term ends and you renew
- Seeing what a rate change at renewal does to the payment
- Before running the stress test, which needs the same inputs
Mistakes it helps you avoid
- Using a US mortgage calculator. Monthly compounding overstates the payment on a fixed-rate Canadian mortgage quoted semi-annually.
- Confusing the amortization with the term. The amortization is the full payoff time; the term is how long the rate lasts.
- Assuming bi-weekly means half the monthly payment. Only the accelerated option does; a standard bi-weekly payment is the monthly total spread over 26 payments.
- Forgetting the balance at renewal. After a five-year term, most of the loan is still outstanding.
How the payment is worked out
The quoted rate is converted into the rate for one payment period, then the standard loan formula gives the level payment.
effective annual rate = (1 + rate ÷ c)^c − 1 c = compounding periods a yearrate per payment period = (1 + effective annual rate)^(1 ÷ n) − 1 n = payments a yearpayment = loan × i ÷ (1 − (1 + i)^−(n × years))accelerated bi-weekly = monthly payment ÷ 2, paid 26 times a yearaccelerated weekly = monthly payment ÷ 4, paid 52 times a yearbalance after k payments = loan × (1 + i)^k − payment × ((1 + i)^k − 1) ÷ iinterest over the term = payments made − principal repaid
Accelerated payments are larger than the standard payment for their frequency, so the loan is paid off before the full amortization. The calculator solves for the real payoff time instead of assuming the original number of years. Semi-annual compounding means interest is added twice a year, so the effective annual rate is slightly higher than the quoted rate.
Worked example: $450,000 at 5.00%, 25 years, semi-annual compounding
You borrow $450,000 on a five-year fixed term at 5.00%, amortized over 25 years, with semi-annual compounding.
- Effective annual rate: (1 + 0.05 ÷ 2)² − 15.0625%
- Rate per month0.41239%
- Monthly payment$2,617.22
- Balance after the 5-year term (60 payments)$398,283.78
- Interest paid over the term$105,317.13
- Interest over the whole 25 years$335,166.73
The payment is $2,617.22 a month, and you still owe $398,283.78 when the term ends.
Switching to accelerated bi-weekly pays $1,308.61 every two weeks, clears the mortgage in about 21.5 years instead of 25, and cuts total interest to $280,774.15, a saving of $54,392.58.
Which compounding should I choose?
Use whatever your mortgage contract states. Canadian fixed-rate mortgages are conventionally compounded semi-annually, and the Interest Act's wording that the rate be "calculated yearly or half-yearly, not in advance" is the origin of that convention. Variable-rate mortgages are often compounded monthly. If your lender quotes an annual percentage rate or a different basis, ask which one the contract uses.
Amortization limits for insured mortgages
An insured mortgage normally has a maximum 25-year amortization. Since December 15, 2024, the Department of Finance has allowed 30 years for first-time home buyers and for buyers of new builds. The minimum down payment calculator shows when insurance applies, and the FHSA calculator covers saving for the down payment.
Terms on this page
- Amortization
- The total time a mortgage would take to pay off at the current payment, such as 25 years.
- Term
- The length of time your interest rate and lender conditions apply, usually one to ten years.
- Semi-annual compounding
- Interest is added to the balance twice a year, the usual convention for Canadian fixed-rate mortgages.
- Accelerated payment
- Half the monthly payment every two weeks, or a quarter every week, which adds up to one extra monthly payment a year.
Common questions
Why is my Canadian mortgage payment lower than a US calculator shows?
Canadian fixed-rate mortgages are conventionally compounded semi-annually, while US calculators compound monthly. Semi-annual compounding gives a slightly lower periodic rate for the same quoted rate, so the payment is lower. Set the compounding to match your contract.
What does accelerated bi-weekly mean?
You pay half of your monthly payment every two weeks, which is 26 payments a year instead of 12. That adds up to the equivalent of one extra monthly payment a year, which is what the Financial Consumer Agency of Canada describes, and it pays the mortgage off sooner.
What is the difference between amortization and term?
The amortization is how long the whole loan would take to pay off, commonly 25 years. The term is how long your rate and conditions last, commonly five years. At the end of the term you renew the remaining balance at a new rate.
How much interest do I pay over a five-year term?
It depends on the balance and the rate. On $450,000 at 5.00% over 25 years with semi-annual compounding, the interest over the first five years is about $105,317. Enter your own figures to see yours.
What is the longest amortization I can have?
For insured mortgages the standard maximum is 25 years, and since December 15, 2024 it is 30 years for first-time home buyers and for buyers of new builds. For uninsured mortgages, the limit is your lender's.
What to work out next
- Mortgage stress testSee whether you would qualify, and for how much, at the rate lenders test.
- Minimum down paymentCheck the down payment you need, and when mortgage insurance applies.
- FHSA roomSaving for the down payment? See your First Home Savings Account room.
- Toronto closing costsAdd the closing costs for a Toronto purchase to your cash needs.
- Smith ManoeuvreAlready have a mortgage? See how converting it to tax-deductible debt works.
Where these numbers come from
- Justice Laws Website — Interest Act, section 6 The requirement that a mortgage state its rate "calculated yearly or half-yearly, not in advance".
- Financial Consumer Agency of Canada — Paying off your mortgage faster Accelerated weekly and bi-weekly payments add the equivalent of one extra monthly payment a year.
- Department of Finance Canada — The boldest mortgage reforms in decades The $1.5 million insured price cap and 30-year amortizations for first-time buyers and new builds, from December 15, 2024.
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- Why Canadian mortgages compound semi-annuallyA single clause in the Interest Act is why a 5% Canadian mortgage is not a 5% American one.
- How Canada's mortgage qualifying rules work: stress test, down payment and amortizationThe three rules that decide how much you can borrow: the stress test, the down payment tiers and the amortization limit.
- How property tax works in six Canadian citiesToronto taxes a 2016 value, Winnipeg taxes 45% of the value, Saskatoon and Regina tax 80%. The rate alone tells you little.
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