Mortgage Amortization Calculator
See your full amortization schedule with Canadian semi-annual compounding and prepayment privileges.
Payment
$2,965.21
Total Interest
$389,563.71
Total Cost
$889,563.71
APR (APR)
5.14%
| Period | Payment | Interest | Loan Amount | Balance |
|---|---|---|---|---|
| 1 | $25,486.89 | $10,095.66 | $489,904.34 | |
| 2 | $24,955.09 | $10,627.46 | $479,276.88 | |
| 3 | $24,395.28 | $11,187.27 | $468,089.61 | |
| 4 | $23,805.97 | $11,776.57 | $456,313.03 | |
| 5 | $23,185.63 | $12,396.92 | $443,916.12 | |
| 6 | $22,532.61 | $13,049.94 | $430,866.18 | |
| 7 | $21,845.19 | $13,737.35 | $417,128.82 | |
| 8 | $21,121.56 | $14,460.98 | $402,667.84 | |
| 9 | $20,359.82 | $15,222.73 | $387,445.11 | |
| 10 | $19,557.95 | $16,024.60 | $371,420.51 | |
| 11 | $18,713.83 | $16,868.71 | $354,551.79 | |
| 12 | $17,825.26 | $17,757.29 | $336,794.50 | |
| 13 | $16,889.87 | $18,692.67 | $318,101.83 | |
| 14 | $15,905.22 | $19,677.33 | $298,424.50 | |
| 15 | $14,868.70 | $20,713.85 | $277,710.65 | |
| 16 | $13,777.57 | $21,804.98 | $255,905.67 | |
| 17 | $12,628.97 | $22,953.57 | $232,952.10 | |
| 18 | $11,419.87 | $24,162.68 | $208,789.42 | |
| 19 | $10,147.08 | $25,435.47 | $183,353.95 | |
| 20 | $8,807.24 | $26,775.31 | $156,578.64 | |
| 21 | $7,396.82 | $28,185.73 | $128,392.91 | |
| 22 | $5,912.11 | $29,670.44 | $98,722.48 | |
| 23 | $4,349.19 | $31,233.36 | $67,489.12 | |
| 24 | $2,703.94 | $32,878.60 | $34,610.52 | |
| 25 | $972.03 | $34,610.52 | $0.00 |
An amortization schedule shows exactly how every mortgage payment splits between interest and principal, month by month, for the whole time it takes to pay the loan to zero. Canadian mortgages have a quirk that catches many borrowers out: they compound semi-annually by law, not monthly like most other countries — so the effective monthly rate is slightly lower than a naive division of the quoted rate by 12.
This calculator uses the correct Canadian semi-annual compounding convention, and separates the two numbers Canadians most often confuse: the term (how long your current rate is locked in) and the amortization period (how long it takes to pay off the mortgage entirely).
Why Canadian Mortgages Compound Semi-Annually
By federal law, Canadian mortgages are quoted as compounding semi-annually, not in advance. That means the effective monthly rate is calculated as (1 + annual rate ÷ 2)² for the effective annual rate, then converted down to a monthly figure — not simply the annual rate divided by 12. The difference is small per month, but it is the legally correct method and what your lender actually uses.
Term vs Amortization: Two Different Numbers
The amortization period is the total time — commonly 25 years — needed to pay off the mortgage completely at the current payment. The term, usually 3 to 5 years, is how long your interest rate is locked in before you renew at whatever rate is available at that time. A mortgage can have a 25-year amortization but a 5-year term, meaning you renegotiate the rate five times before the loan is paid off.
Prepayment Privileges and How to Use Them
Most Canadian mortgage contracts include prepayment privileges — the right to make lump-sum payments (commonly 10–20% of the original principal per year) and/or increase your regular payment (commonly by 10–20%) without penalty. Prepaying beyond your privilege limit, or breaking the mortgage before the term ends, can trigger a penalty of three months’ interest or an Interest Rate Differential (IRD) charge, whichever is greater.
Worked Example: $500,000 Over a 25-Year Amortization at 5.2%
On a $500,000 mortgage at 5.2%, amortized over 25 years and compounded semi-annually as required by Canadian law, the monthly payment is $2,965.21.
Over the full 25-year amortization you would pay $389,563.71 in interest, for a total of $889,563.71.
If your term is 5 years, the balance remaining when it is time to renew is approximately $443,916.12 — you would then renew at whatever rate is available at that time for the remaining amortization.
Effective monthly rate = (1 + annual rate ÷ 2)² raised to 1/12, minus 1; Payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Fixed vs Variable, and Accelerated Payments
This calculator models a fixed-rate mortgage. Variable-rate mortgages instead move with the lender’s prime rate, so the interest/principal split shifts with every rate change even though the payment may stay level. Accelerated biweekly or weekly payment options — paying the monthly amount split into smaller, more frequent instalments — add the equivalent of one extra monthly payment per year and shorten the amortization noticeably.
Prepayment Privileges and Break Penalties
Federally regulated lenders must disclose your prepayment privileges clearly, but the exact percentage (commonly 10–20% of original principal per year) is set by the lender, not by federal law. Prepaying beyond that allowance, or breaking the mortgage before the term ends, typically costs the greater of three months’ interest or the Interest Rate Differential (IRD) — the IRD is usually far larger on a fixed-rate mortgage when rates have fallen since you signed.
Frequently Asked Questions
Why is my Canadian mortgage payment slightly different from a US-style calculator?
Canadian mortgages are legally required to compound semi-annually rather than monthly. This calculator uses that convention, so the effective monthly rate — and therefore the payment — is slightly lower than a calculator that simply divides the annual rate by 12.
What's the difference between my mortgage term and amortization period?
The amortization period (often 25 years) is the total time to pay off the mortgage at the current payment. The term (often 3-5 years) is how long your current interest rate is locked in before you renew — you can renew multiple times before the mortgage is fully amortized.
How much can I prepay without a penalty?
Most Canadian mortgages allow lump-sum prepayments of 10-20% of the original principal per year, plus a payment increase of a similar percentage, without penalty. Check your specific mortgage contract, since the exact allowance is set by the lender.
What is an Interest Rate Differential (IRD) penalty?
An IRD is the penalty many Canadian lenders charge for breaking a fixed-rate mortgage before the term ends, calculated from the difference between your rate and the lender's current rate for a similar remaining term. It can be far larger than the standard three-months-interest penalty, especially when rates have dropped since you signed.
How much faster does an accelerated biweekly payment pay off my mortgage?
Accelerated biweekly payments (half your monthly payment, paid every two weeks) add up to 26 half-payments a year — the equivalent of one extra monthly payment annually — typically shortening a 25-year amortization by three to four years.
What happens to my payment when my mortgage term ends?
At renewal, you negotiate a new rate and term for the remaining amortization period — your payment will change to reflect whatever rate is available at that time, calculated over the amortization years remaining, not a fresh 25 years.
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