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Published January 3, 2024
Reading Time
4 minutes

Canada Mortgage Amortization Calculator

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An amortization calculator shows how mortgage payments affect your mortgage balance over the remainder of your loan.

Mortgage Details

Location Details

Mortgage Summary

Estimated Payment

The following items show your expected payment schedule over the full amortization period.

Doughnut chart

$2,763

Monthly Payment

Principal & Interest
$2,762.62
Mortgage Insurance
$0
Mortgage details
Home Price
$500,000
Down Payment
$25,000 (5%)
Total Loan Cost
$828,787.10
Loan Amount
$475,000
Total Interest Cost
$353,787.10
Interest Rate
5%
Mortgage Term
5 Years
Amortization Period
25 Years
Payment Frequency
Monthly
No. of Payments
300

Amortization Schedule

Balance remaining in undefined

Payments Breakdown

Year
Total Paid
Principal Paid
Interest Paid
Balance
2024$33,151.48$9,866.97$23,284.52$465,133.03
2025$33,151.48$10,366.48$22,785.00$454,766.55
2026$33,151.48$10,891.29$22,260.20$443,875.26
2027$33,151.48$11,442.66$21,708.83$432,432.60
2028$33,151.48$12,021.94$21,129.54$420,410.66

Term Total

$165,757.42$54,589.34$111,168.08$420,410.66

The line above displays the totals at the end of your mortgage term. At this time, you will renew your mortgage and choose among the rates that are available. The following analysis assumes you will lock in the same rate for the remainder of the amortization period, which may not be possible.

2029$33,151.48$12,630.55$20,520.93$407,780.11
2030$33,151.48$13,269.98$19,881.51$394,510.13
2031$33,151.48$13,941.77$19,209.72$380,568.36
2032$33,151.48$14,647.57$18,503.91$365,920.79
2033$33,151.48$15,389.10$17,762.38$350,531.69
2034$33,151.48$16,168.18$16,983.31$334,363.51
2035$33,151.48$16,986.69$16,164.79$317,376.82
2036$33,151.48$17,846.64$15,304.84$299,530.18
2037$33,151.48$18,750.13$14,401.36$280,780.05
2038$33,151.48$19,699.35$13,452.13$261,080.70
2039$33,151.48$20,696.63$12,454.85$240,384.06
2040$33,151.48$21,744.40$11,407.08$218,639.66
2041$33,151.48$22,845.21$10,306.27$195,794.45
2042$33,151.48$24,001.75$9,149.73$171,792.70
2043$33,151.48$25,216.84$7,934.65$146,575.86
2044$33,151.48$26,493.44$6,658.04$120,082.42
2045$33,151.48$27,834.67$5,316.81$92,247.75
2046$33,151.48$29,243.80$3,907.68$63,003.95
2047$33,151.48$30,724.27$2,427.22$32,279.68
2048$33,151.48$32,279.68$871.80$0.00

What you can do with an amortization schedule

Amortization calculators are helpful because even if your mortgage payment stays the same over the life of the loan, the amount earmarked for interest changes after each payment you make. 

When you use an amortization calculator, you’ll get a table that lists every payment you’ll make. You can see how much of each payment will go toward interest and how much will go toward paying off the balance of your loan. 

One instance when this information is helpful is if you’re considering making any additional payments to lower your outstanding balance. With an amortization schedule, you can estimate how many future payments you’d eliminate by paying down more of your mortgage now.

How to use an amortization table

When you use an amortization calculator, you’ll see the results in a graph that looks like this:

Each vertical column represents your mortgage payments. In the graph above, one column — part green, part yellow — represents the sum of a year of payments. The black line represents the remaining balance of your mortgage.

The height of each column stays the same from year to year. That’s because your mortgage payment is a constant. Note that if you have a variable-rate mortgage, your payments may not be as predictable.

But the amount going toward the remaining principal (green) rises over time while the amount going toward paying interest (yellow) shrinks. That’s because the interest you owe is calculated using the current principal; as your principal decreases, so does the amount you owe in interest each time you make a payment. As a result, an incrementally larger percentage of each payment goes toward paying off the principal. Hover over the black line to see the breakdown at any one point in time.

Overall, an amortization calculator shows you how those different financial forces — the upward pressure of interest costs and the downward pressure of paying down your principal — affect the balance of your mortgage over time. 

Reading the Payments Breakdown section

To see exactly where your account stands after each payment, check out the Payments Breakdown table, as shown below. Expanding any given year reveals the impact of each payment. 

Mortgage renewals can affect your amortization table

An amortization calculator projects your payments until your mortgage is paid off completely. If you just bought a home, that could mean 25 years of payments. But the length of a mortgage contract typically lasts for fewer than 10 years. Five-year mortgages have historically been the most common, which means you’d have five different mortgage contracts before you pay back the principal.

Each time you renew your mortgage, you’re subject to the prevailing mortgage interest rates at that time. That means if your first mortgage had a 4% rate, and your new mortgage rate is 6%, your monthly payment will rise. You won’t pay the mortgage off any sooner, though; that additional amount is earmarked for the increased interest.

You can adjust the term on this calculator, but the calculator uses your current interest rate even after your current term ends. A banner, shown below, marks the point at which the current mortgage contract ends. 

Amortization and mortgage prepayments

The mechanics of amortization are like the inverse of compound interest in a savings account. 

When you accumulate money in a savings account, the interest you earn increases your account balance, which means you’ll earn even more interest in the future even if you don’t deposit additional savings. 

Similarly, each time you make a routine mortgage payment, you accelerate the rate at which future payments further lower the principal. 

If you pay down your principal early by making additional payments, also called prepayments, you lower your principal, which means a bigger chunk of every remaining regular payment will pay down the principal. 

Let’s see what that looks like in practical terms. Say you took out a $300,000 fixed-rate loan at 5% interest, which would mean a monthly payment of about $1,745. Five years into your mortgage, you decide to make a one-time prepayment of $20,000. While that amount is the equivalent of just under 11.5 months of regular payments, it actually reduces your payback schedule by 2.3 years.

Nerdy Tip: Paying off your mortgage early can come with prepayment penalties, depending on your loan agreement. An open mortgage has the most flexibility to make additional payments, but it often comes with a higher interest rate than a closed mortgage.

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