WealthMortgage Calculator (Payment + Amortization)
Mortgage calculator
Show annual amortization table
For informational purposes only. Does not constitute financial advice. Consult your financial institution for the exact terms of your loan.
How mortgage math works
A mortgage is a fixed-payment annuity: each payment is identical, but its composition shifts over time. For Canadian mortgages, the calculator converts the nominal semi-annually compounded rate to the selected frequency:
c_f = (1 + r/2)^(2/f) − 1
Here r is the nominal rate and f the payments per year. The base payment uses M = P × c_f / (1 − (1 + c_f)^(−N)). Non-accelerated choices keep approximately the same annual payment total as monthly payments; accelerated options pay the equivalent of one extra monthly payment per year.
The effect of extra payments
Every extra dollar goes straight to reducing principal. The effect cascades: next month, interest is charged on a lower balance, so more of your regular payment reduces principal, and so on. Even a modest monthly prepayment can shorten a 25-year mortgage by several years and save tens of thousands of dollars in interest — the calculator shows you exactly how much.
Worked example
Take a $400,000 loan at 5.5% over 25 years. Under the Canadian semi-annual compounding convention, the monthly payment is about $2,442 and interest over 25 years is about $332,470, assuming the rate never changes. Accelerated or extra payments reduce time and interest, but the lender's contract controls prepayment privileges and penalties.
Fixed rate, variable rate, and terms in Canada
In Canada, a mortgage is negotiated in terms (typically 1 to 5 years) rather than for the full amortization period. At each renewal the rate is renegotiated. A fixed rate locks in the same payment for the term; a variable rate moves with the Bank of Canada policy rate. This calculator assumes a constant rate over the full amortization, making it a planning tool, not a loan offer.
Frequently Asked Questions
How is a Canadian mortgage payment calculated?
The nominal rate is first converted from semi-annual compounding to the selected frequency using c = (1 + rate/2)^(2/f) − 1. The annuity formula then calculates the regular payment. Each payment covers accrued interest before reducing principal.
What is the difference between biweekly and accelerated biweekly?
Standard biweekly is monthly payment × 12 ÷ 26. Accelerated biweekly is monthly payment ÷ 2, paid 26 times, which equals one extra monthly payment each year. See the FCAC payment-frequency definitions.
What happens if I make extra payments on my mortgage?
Every extra dollar goes directly to reducing the principal. This creates a cascade effect: next month, interest is charged on a lower balance, so more of your regular payment reduces principal, and so on. Even a modest monthly prepayment can shorten your mortgage by several years and save tens of thousands of dollars in interest.
What is the maximum amortization period in Canada in 2026?
Since August 2024, the maximum amortization is 30 years for first-time buyers or new construction with CMHC-insured mortgages, and 25 years for other insured mortgages. For uninsured mortgages (20% or more down payment), some lenders offer up to 30 years. These rules may change — verify with your lender. The figures from this calculator are provided for informational purposes only.
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