Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and view amortization.
Updated
Payment Breakdown
How Mortgage Payments Are Calculated
Monthly mortgage payments are calculated using a standard amortization formula that accounts for the principal loan amount, interest rate, and loan term.
Where:
M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate
n = Total number of payments
Your total monthly housing cost may also include property taxes, homeowners insurance (PMI if applicable), and HOA fees, which are not included in this basic calculation.
Frequently Asked Questions
How are monthly mortgage payments calculated?
Payments use the standard amortization formula based on the loan amount, interest rate, and amortization period, so each payment covers that month's interest plus some principal. Early payments are mostly interest; later ones are mostly principal.
What is the difference between the term and the amortization period?
In Canada, the amortization period is the total time to pay off the mortgage (often 25 years), while the term is the length of your current rate contract (often 5 years). You renegotiate the rate at each renewal.
Do extra payments really save money?
Yes — extra payments go straight to principal, which shrinks the balance that interest is charged on. Even small annual prepayments can cut years off a mortgage.
Why might this differ slightly from my lender's numbers?
This calculator uses monthly compounding. Canadian fixed-rate mortgages legally compound semi-annually, and lenders may round differently, so treat results as a close estimate rather than a quote.