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Canada Mortgage Payment Calculator

Wondering how much a home might cost you each month? Take a minute to estimate your monthly mortgage payment.
Canada Mortgage Payment Calculator
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» Skip ahead to: Mortgage payment breakdown | How mortgage payments work | How to shrink your payment

Mortgage details
$0$2,500,000+
Mortgage summaryThe following items show your expected payment schedule over the full amortization period.
$0Estimated monthly payment

Principal & Interest
$0.00

Mortgage Insurance
$0.00
Mortgage details
Home price$500,000

Down payment$25,000 (5.00%)

Total loan cost$0.00

Loan amount$0

Total interest cost$0
Interest rate5%

Mortgage term5 years

Amortization period25 years

Payment frequencyMonthly

No. of payments300
Amortization schedule
Payments breakdown
YearTotal PaidPrincipal PaidInterest PaidBalance
Term Total$0.00$0.00$0.00$0.00
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.

Mortgage payment calculators: They can estimate a lot, but not everything

A mortgage payment calculator is best viewed as a general budgeting tool to be used in the early stages of your home buying journey.

Plug in a few numbers and you can get a general sense of what a certain mortgage scenario might cost you — and whether it works with your current income.

A payment calculator uses rough estimates, though, so the results have to be taken with a grain of salt. The mortgage rate you enter, for example, could be different than what you’re eventually offered by a lender, who will consider additional factors like your credit score and debt service ratios.

Still, a mortgage calculator can teach you a lot about the variables that affect your mortgage. You can:

  • Understand how slight differences in interest rate affect the cost of your mortgage.

  • See the impact your down payment, amortization and payment frequency choices have on your monthly payments.

For an accurate, actionable estimate of what a particular mortgage will cost you, you’ll have to speak to a mortgage professional and get a pre-approval based on verified financial information.

  1. In the “Property Value” field, enter the price of the home you intend to buy or use the slide tool to indicate a price.

  2. In the “Down Payment” field, enter the amount of your down payment. You can use a dollar figure or a percentage of the home’s listing price.

  3. In the “Interest Rate” field, enter a potential mortgage interest rate. If you’re unsure of what value to enter, check Canada’s current mortgage rates to get an idea of a reasonable number.

  4. In the “Mortgage Term” field, choose how long you’d like your mortgage contract to last.

  5. In the “Rate Type” field, indicate whether your future mortgage will have a fixed or variable interest rate.

  6. In the “Amortization” field, choose the total length of your loan.

  7. In the “Payment Frequency” field, indicate how often you’ll make a mortgage payment.

The payment breakdown displayed by the mortgage payment calculator gives you more insight into your amortization schedule, or how long it takes to pay off your mortgage in full.

You can see how much interest (represented by the yellow bars) and how much principal (the green bars) each payment takes care of, not just for your current mortgage term, but for every year of your amortization period.

What goes into a mortgage payment?

  • Principal. The principal is the original amount you borrow. If you’re buying a $400,000 home and your down payment is $50,000, the principal is $350,000.

  • Interest. In exchange for letting you borrow money, lenders charge interest. Mortgage interest rates are a major factor in the cost of aany long-term mortgage.

  • Mortgage default insurance. If your down payment is less than 20% of the home’s purchase price, you’ll be required to buy mortgage default insurance. Your mortgage default premium will be added to your principal, which means you’ll pay interest on it.

  • Property taxes. Some lenders allow you to include your property taxes in your mortgage payment. 

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How mortgage payments work

Payment frequency

Mortgage payments must be paid according to a strict schedule. Monthly payments are the norm, but there are other options to choose from:

  • Semi-monthly. Two payments per month, or 24 per year.

  • Bi-weekly. One payment every two weeks, or 26 a year..

  • Weekly. One payment every week, or 52 payments a year.

Lenders often offer “accelerated” weekly and bi-weekly payment schedules that add up to an extra payment per year.

Payment make-up: Interest vs. principal

At the outset of your mortgage, most of your payment goes toward interest. As you progress through your amortization period, the balance shifts. By the time you reach the last year of your loan, most of your payment will be going toward the principal.

Amortization schedule

Amortization refers to how long it takes to pay off a mortgage in full. The amortization period you choose will determine the size of your mortgage payment.

The shorter your amortization period, the larger your payment becomes. That’s because you’re dividing your mortgage by a smaller number of payments.

🤓Nerdy Tip

Use a mortgage amortization calculator to see the effects different amortization periods have on your monthly mortgage payment and the overall cost of your mortgage.

Ways to decrease your mortgage payment

Make a bigger down payment

When possible, making a down payment that’s larger than the minimum required for a home purchase can significantly shrink your mortgage payment.

A larger down payment means you’re borrowing less money and being charged less interest, so not only will your monthly payment be smaller, but your overall homeownership costs will be less, too.

While it might seem ideal to put down the largest amount possible, doing so could limit the amount of money available to cover closing costs and any maintenance expenses you encounter.

Secure a lower mortgage rate

Because interest makes up such a large portion of your mortgage balance, getting a lower rate at the outset can lead to short- and long-term savings.

Your mortgage rate depends heavily on your credit standing. The lowest rates tend to go to borrowers with high credit scores and histories of stable credit usage. You might need to pay down existing debts in order to qualify for a rate that noticeably reduces your mortgage payment.

Getting a lower rate often requires negotiating with your lender or mortgage broker. If you’re focused on scoring a lower mortgage payment, never accept the first rate you’re offered.

Choose a longer amortization period

A longer amortization period will result in lower monthly payments since you’re spreading your mortgage across multiple additional years.

An extended amortization will make things more affordable for you initially, but you might wind up paying much more in interest over the long-term.

Make changes to your mortgage mid-term

Depending on the mortgage you choose, you might be able to make changes during your mortgage term that allow you to shrink your payment. You could:

  • Switch rates. If you have a variable-rate mortgage and your payment has increased, you could consider switching to a lower fixed rate without penalty. Fixed rates can’t be swapped for variables, though. 

  • Extend your amortization. In some circumstances, lenders may allow you to increase your amortization period without breaking your mortgage and refinancing. 

  • Refinance. If rates have fallen significantly, refinancing at a new, lower rate can greatly reduce your mortgage payment. If rates are only modestly lower, the cost of refinancing might outweigh the benefits. 

Frequently asked questions


If you have pristine credit, a $50,000 down payment and are offered a mortgage interest rate of 5%, a $300,000 house would cost you $1,495 a month.

But if your credit score is low, you only have the minimum down payment of $15,000, and the best rate you’re offered is 6.25%, your monthly payment would be $1,941.

1. Principal

The first thing to do is establish the principal. This can be done by subtracting your down payment from the home’s sale price.

  • $700,000 – $140,000 = $560,000

2. Total payments

You’ll also need to know the total number of mortgage payments you’ll be making. Calculate this number by multiplying the total years of your amortization by 12, the number of months in each year.

  • 25 x 12 = 300

3. Monthly interest rate

Here’s where things get a little more complicated. Interest is an annual calculation, so you have to break down your interest rate to find out how much interest you’ll pay each month. Our formula does this in two steps.

First, you need to find out your effective annual interest rate (EAR). You do this using your actual rate (R) and the number of times interest compounds per year (C).

  • EAR = ((1 + (R/C)) ^ C) – 1

  • ((1 + (.05/2)) ^ 2) – 1 = 0.05062

Then you have to determine your monthly interest rate (R). You’ll need to plug your number of payments per year (N) into this one.

  • R = (((1 + EAR) ^ (1/N)) -1)

  • (((1+ 0.05062) ^ (1/12))-1 = .00412

4. Final calculation

You have all the numbers you need. It’s time to plug them into the formula for determining your monthly mortgage payment (P).

  • P = Principal x monthly interest rate/ 1 – (1 + monthly interest rate) ^ (-total number of payments)

  • 560,000 x 0.00412 / 1 – (1 + 0.00412) ^ (-300)

  • Monthly payment = $3,257

The monthly payment on a $500,000 mortgage depends on the interest rate and the amortization period.

At 5% and a 25-year amortization, your monthly payment would be $2,989. At 4% and 25 years, it would be $2,704.

A 5% rate and a 20-year amortization would result in a monthly payment of $3,378.

Closing costs like commissions, land transfer taxes and legal fees will need to be paid separately. A mortgage payment typically includes the principal, interest and mortgage default insurance.

If you’re having difficulty making your mortgage payment, reach out to your lender or mortgage broker and find out what options are available to you. This should happen before you miss a mortgage payment.

Lenders often help their borrowers in instances like these, so there may be a solution that works for you, like extending your amortization or switching your mortgage from a variable rate to a fixed rate.

How to calculate a mortgage payment

To illustrate how to calculate a mortgage payment on your own, we’ll use an example mortgage for a home worth $700,000. We’ll assume a down payment of 20% ($140,000), a 5% interest rate and a 25-year amortization period. We’ll also use a monthly payment frequency.

1. Principal

The first thing to do is establish the principal. This can be done by subtracting your down payment from the home’s sale price.

  • $700,000 – $140,000 = $560,000

2. Total payments

You’ll also need to know the total number of mortgage payments you’ll be making. Calculate this number by multiplying the total years of your amortization by 12, the number of months in each year.

  • 25 x 12 = 300

3. Monthly interest rate

Here’s where things get a little more complicated. Interest is an annual calculation, so you have to break down your interest rate to find out how much interest you’ll pay each month. Our formula does this in two steps.

First, you need to find out your effective annual interest rate (EAR). You do this using your actual rate (R) and the number of times interest compounds per year (C).

  • EAR = ((1 + (R/C)) ^ C) – 1

  • ((1 + (.05/2)) ^ 2) – 1 = 0.05062

Then you have to determine your monthly interest rate (R). You’ll need to plug your number of payments per year (N) into this one.

  • R = (((1 + EAR) ^ (1/N)) -1)

  • (((1+ 0.05062) ^ (1/12))-1 = .00412

4. Final calculation

You have all the numbers you need. It’s time to plug them into the formula for determining your monthly mortgage payment (P).

  • P = Principal x monthly interest rate/ 1 – (1 + monthly interest rate) ^ (-total number of payments)

  • 560,000 x 0.00412 / 1 – (1 + 0.00412) ^ (-300)

  • Monthly payment = $3,257