Mortgage Payment Calculator Canada
Canadian math: semi-annual compounding, not in advance. Change the frequency and watch what accelerated payments really do to the amortization.
Today's lowest insured five-year fixed.
The formula, openly
Canada prices mortgages with interest compounded semi-annually, not in advance. To get the rate for one payment period:
i = (1 + j/2)^(2/n) − 1 A = P × i ÷ (1 − (1 + i)^−N) j = annual rate n = payments per year P = principal N = total payments
American calculators use i = j/n. On a $500,000 mortgage at 5% over 25 years that is a $14.93 monthly difference — small enough to look like rounding, large enough to be wrong on every page it appears.
Your full amortization schedule as a PDF
Every payment to the last, with the interest and principal split and the balance at each renewal. Free.
Questions
Why is your payment lower than another calculator's?
Because Canadian mortgages compound semi-annually, not monthly. The formula converts the nominal annual rate to a periodic rate as (1 + rate/2)^(2/n) − 1. Calculators built on American conventions divide the rate by twelve instead, which overstates every payment they produce.
Does accelerated bi-weekly actually save money?
Yes, but not for the reason usually given. An accelerated bi-weekly payment is your monthly payment cut in half and paid 26 times, which is thirteen monthly payments a year rather than twelve. The saving comes from the extra payment, not from the frequency. Plain bi-weekly, at 26 payments equal to twelve months of payment, saves almost nothing.
What is the difference between term and amortization?
The term is the length of this contract — usually one to five years. The amortization is how long it would take to clear the debt at the current payment, usually 25 or 30. At the end of the term you renew the remaining balance.
Does this include property tax and insurance?
No — this is principal and interest only. Your lender may collect property tax with the payment on an insured mortgage. Use the closing costs calculator for the full monthly picture.
The math is free. Acting on it is the point.
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
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