Mortgage payment calculator
Estimate your monthly mortgage payment from home price, down payment, interest rate and amortization.
How much will my mortgage payment be?
Your payment comes down to four things: how much you borrow, the interest rate, how long you take to pay it off (amortization) and how often you pay. Change any one of them and the number moves. Put your own figures into the calculator below, then scroll down for the formula, an illustrative example and the mistakes we see most often.
- Enter your property value, down payment, interest rate and amortization for an estimate
- Mortgage default insurance is added automatically when your down payment is under 20%
- It also estimates land transfer tax for your province
- Bi-weekly accelerated payments shorten your amortization without changing the rate
Mortgage Details
Location Details
Estimated Payment
Your expected payment schedule over the full amortization period.
$2,712
Monthly Payment
Mortgage Details
Home Price
$500,000
Interest Rate
5%
Down Payment
$50,000 (10.0%)
Mortgage Term
5 Years
Total Loan Cost
$813,662
Amortization Period
25 Years
Loan Amount
$463,950
Payment Frequency
Monthly
Total Interest Cost
$349,712
No. of Payments
300
CMHC Premium
$13,950
Land Transfer Tax
$6,475
Results are estimates. Your actual payment may differ.
How the calculation works
Every mortgage payment runs on the same amortization formula. First purchase, fifth renewal, a refinance to pay off the credit cards: the maths doesn't change.
Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
P = loan amount (price − down payment + any insurance premium), r = periodic interest rate, n = total number of payments over the amortization
One Canadian quirk: fixed-rate mortgages are compounded semi-annually by law, not monthly. Lenders convert the annual rate into an equivalent monthly (or bi-weekly) rate before running the formula, which is why Canadian payments come out slightly lower than U.S.-style calculators show for the same rate.
Worked example (illustrative)
Say you buy a $500,000 home with $50,000 (10%) down. That leaves a $450,000 principal. Because the down payment is under 20%, a default insurance premium of 3.10% applies, adding $13,950 for a total loan of $463,950. Using an example rate of 5.00% over 25 years (an assumption for illustration, not a quote):
Property tax, heating and condo fees sit on top of that. They aren't part of the mortgage payment, but a lender counts them when deciding how much you qualify for, so run the home affordability calculator next if you haven't set a budget yet.
Already own? Same formula, different questions
Homeowners use this page too. If your 2021 five-year fixed is coming up for renewal, plug in your remaining balance and a few example rates to see how big the jump could be, then compare offers with the renewal payment calculator. If you're weighing a refinance to restructure your mortgage and roll in high-interest balances, the debt consolidation savings calculator shows the before-and-after on your monthly outflow.
Common mistakes to avoid
- Forgetting the default insurance premium when the down payment is under 20%
- Comparing a monthly figure to a bi-weekly figure without converting first
- Using an advertised rate without confirming it's available for your closing date
- Ignoring property tax and heating, which lenders include in affordability even though they're not part of the mortgage payment
- Assuming a longer amortization is a better deal, when it usually means more total interest
Want a realistic rate to plug in? Check current mortgage rates, and budget for closing with the land transfer tax estimator.
Frequently asked questions
How are mortgage payments calculated in Canada?
Canadian mortgage payments are calculated using the loan amount, the periodic interest rate (your annual rate converted to the rate per payment), and the number of payments left in your amortization. Fixed-rate mortgages in Canada are compounded semi-annually by law, so lenders convert the annual rate to an equivalent periodic rate before applying the standard amortization formula.
What's the difference between amortization and term?
Amortization is the total time it takes to pay off your mortgage in full, commonly 25 or 30 years. Term is the length of your current contract with a specific rate and lender, typically 1 to 5 years. You renew your term several times over one amortization.
Does a bigger down payment always lower my payment?
Yes. A larger down payment shrinks the loan your payment is calculated on. At 20% down you also skip mortgage default insurance, so there's no premium added to the balance.
How does payment frequency affect what I pay?
Bi-weekly accelerated payments (26 payments of half your monthly amount) add up to roughly one extra monthly payment a year. That shortens your amortization and cuts total interest, even though the rate itself doesn't change.
Do I need CMHC insurance and does it affect my payment?
If your down payment is under 20% of the purchase price, mortgage default insurance (from CMHC or a private insurer) is mandatory, and it's only available on homes under $1.5M. The premium is usually added to the loan, so it nudges your monthly payment up rather than being paid upfront.
Why is my payment higher than a simple online estimate?
Simple estimates often skip the insurance premium, use monthly instead of semi-annual compounding, or leave out property tax and heating, which lenders count toward affordability. This calculator applies Canadian compounding and insurance premium bands for a closer figure.
Ready to turn the estimate into an application?
Free to apply, no obligation. An agent reviews your file and walks you through the lender options.
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Learn moreBest available rate from 8Twelve's lender panel, subject to qualification and lender approval. OAC. Your rate depends on your individual financial situation.