Mortgage Calculator

CalculatorsThe monthly payment, the interest over the term, and how the balance falls — including Canadian half-yearly compounding.

Home price

In any currency.

Down payment

Interest rate

% a year

Term

years

Property tax per year

Optional. Leave empty to leave it out.

Home insurance per year

Optional.

Each month, all in

2,547.62

2,022.62 loan + 400.00 tax + 125.00 insurance

loan × i ÷ (1 − (1 + i)^−months)

Loan: 320,000.00; 80% of the price; price − down payment
Total interest: 408,142.36; over 30 years; payment × months − loan
Monthly rate, i: 0.5417%; 6.6972% a year effective; r ÷ 12
Total of payments: 728,142.36; loan and interest only

In the first year 20,694.69 of the 24,271.41 paid is interest — 85.3% — and 3,576.72 reduces the loan.

Year by year

Year	Interest	Principal	Balance
1	20,694.69	3,576.72	316,423.28
2	20,455.15	3,816.26	312,607.02
3	20,199.57	4,071.84	308,535.17
4	19,926.87	4,344.54	304,190.63
5	19,635.91	4,635.50	299,555.13
6	19,325.46	4,945.95	294,609.18
7	18,994.22	5,277.19	289,331.98
8	18,640.80	5,630.62	283,701.37
9	18,263.70	6,007.71	277,693.66
10	17,861.36	6,410.06	271,283.60
11	17,432.06	6,839.35	264,444.26
12	16,974.02	7,297.39	257,146.86
13	16,485.30	7,786.11	249,360.75
14	15,963.85	8,307.56	241,053.19
15	15,407.48	8,863.94	232,189.25
16	14,813.84	9,457.57	222,731.68
17	14,180.45	10,090.96	212,640.72
18	13,504.64	10,766.77	201,873.95
19	12,783.57	11,487.84	190,386.11
20	12,014.21	12,257.20	178,128.90
21	11,193.32	13,078.09	165,050.81
22	10,317.46	13,953.96	151,096.86
23	9,382.93	14,888.48	136,208.38
24	8,385.83	15,885.59	120,322.79
25	7,321.94	16,949.47	103,373.32
26	6,186.80	18,084.61	85,288.71
27	4,975.64	19,295.77	65,992.94
28	3,683.37	20,588.05	45,404.89
29	2,304.55	21,966.86	23,438.03
30	833.39	23,438.03	0.00

How this is calculated

loan      = price − down payment
payment   = loan × i ÷ (1 − (1 + i)^−n)      principal and interest
monthly   = payment + property tax ÷ 12 + insurance ÷ 12

i  monthly rate:  r ÷ 12                   compounded monthly
                  (1 + r/2)^(1/6) − 1      compounded half-yearly
n  number of monthly payments = years × 12

Read this before you rely on the number

This is a projection, not financial advice.

This is an estimate for comparing options, not a mortgage offer or advice. It assumes the rate stays fixed for the whole term and every payment is made on time. A real mortgage also carries arrangement fees, possible mortgage insurance, and taxes and insurance that change over time, and the payment a lender quotes can differ in its rounding. The figures that bind you are the ones in your lender's offer.

Half-yearly compounding, from

Interest Act (Canada), section 6 · checked 13 September 2026
Financial Consumer Agency of Canada, sample fixed-rate mortgage credit agreement (archived) · checked 13 September 2026

Report an error in this tool

How it works

A repayment mortgage is paid off in equal monthly amounts, each covering that month's interest and paying down a little of the loan. The formula finds the one payment that brings the balance to exactly zero on the last month. Because interest is charged on whatever is still owed, the early payments are mostly interest and the late ones mostly loan: on the worked example, 85% of the first year's payments go to interest.

Over a long term the interest adds up to more than people expect. A 320,000 loan at 6.5% over 30 years costs 408,142.36 in interest — more than the loan itself. The same loan over 15 years costs 764.93 more a month and saves 226,384.52 in interest. The year-by-year table shows where each year's money goes.

How the rate is compounded changes the payment, and most calculators assume monthly. Canada's Interest Act requires a mortgage with blended payments to state its rate "calculated yearly or half-yearly, not in advance", and fixed-rate Canadian mortgages are compounded half-yearly — the federal regulator's sample fixed-rate agreement says the interest "is compounded twice per year but charged monthly". Half-yearly compounding means a lower monthly rate for the same headline rate: 500,000 at 5% over 25 years is 2,908.02 a month half-yearly against 2,922.95 monthly. Choose the one your mortgage offer states.

Property tax and home insurance are added to the monthly figure because they are usually paid alongside the mortgage, but they are not part of the loan and no interest is charged on them. Leave them empty to see the loan payment on its own.

Worked example

A 400,000 home, 20% down, 6.5% over 30 years, compounded monthly

Loan 400,000 − 80,000 = 320,000
Monthly rate 6.5% ÷ 12 = 0.5417%
Payment 320,000 × i ÷ (1 − (1 + i)^−360) = 2,022.62
Tax 4,800 ÷ 12 = 400.00
Insurance 1,500 ÷ 12 = 125.00
Each month 2,547.62
Year 1 20,694.69 interest, 3,576.72 off the loan
Over 30 years 408,142.36 interest

2,547.62 a month, and more in interest than was borrowed

How to use it

Enter the home price, and the down payment as a percentage or an amount.
Enter the interest rate and the term in years.
Choose how the rate is compounded. Leave it on monthly unless your mortgage states otherwise; choose half-yearly for a Canadian fixed-rate mortgage.
Add property tax and home insurance per year if you want the full monthly cost, or leave them empty.
Read the monthly figure, the total interest, and the year-by-year table.

What this tool does not do

The rate is fixed for the whole term. Variable, tracker and adjustable-rate mortgages change their payment when the rate moves.
Mortgage insurance is not added. In the US and Canada, a down payment under 20% usually means paying for it, and it can be a significant monthly cost.
No arrangement fees, closing costs, legal fees or taxes on the purchase itself.
Property tax and insurance are held constant. Both usually rise over the years.
No overpayments or lump sums. Paying extra shortens the term and cuts the interest, and is not modelled here.
Interest-only mortgages are not supported: every payment here repays some of the loan.
No currency is assumed, and a lender rounding each payment to the cent can differ slightly from the figures here.

Frequently asked questions

How is a mortgage payment calculated?

With the annuity formula: payment = loan × i ÷ (1 − (1 + i)^−n), where i is the monthly interest rate and n the number of monthly payments. It gives the single payment that leaves nothing owing after the last one. 320,000 at 6.5% over 360 months is 2,022.62 a month.

Why is so much of each payment interest at the start?

Because interest is charged on the balance still owed, and at the start almost all of the loan is still owed. On a 320,000 loan at 6.5% over 30 years, 85% of the first year's payments is interest. Each month a little more of the payment goes to the loan, and after 21 years the balance has only halved.

Is a 15-year mortgage better than a 30-year one?

It costs far less in interest and more each month. On 320,000 at 6.5%, 15 years is 2,787.54 a month against 2,022.62 over 30, and saves 226,384.52 in interest. Whether that is better depends on whether the higher payment is affordable with room to spare.

What does half-yearly compounding mean, and who uses it?

It means the annual rate is compounded twice a year rather than twelve times, so the monthly rate is slightly lower for the same headline rate. Canada's Interest Act requires a blended-payment mortgage to state its rate calculated yearly or half-yearly, and Canadian fixed-rate mortgages compound half-yearly. Use the option your own mortgage offer states.

How much does a bigger down payment save?

Every amount you do not borrow saves its share of the interest. Change the down payment and compare the total interest: on the worked example, moving from 20% to 25% down cuts the loan by 20,000 and the monthly payment by about 126.

Does this include mortgage insurance or closing costs?

No. Mortgage insurance, arrangement fees and purchase costs vary too much by country and lender to estimate honestly. Add your lender's figures to the monthly total and the upfront costs yourself.

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— every formula on this page is published so it can be checked.

Last updated 13 September 2026.