Amortization Calculator Canada
Break down every payment of a Canadian mortgage into principal and interest — from the first month to the last of a typical 25-year amortization.
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Formula
I_tinterest in month tP_tprincipal in month tB_tremaining balanceMfixed monthly paymentrmonthly interest ratetmonth indexNote for Canada: Canadian fixed rates compound semi-annually rather than monthly, so a lender's official schedule can differ slightly from the standard monthly schedule shown here.
Estimates only — not financial advice.
Frequently Asked Questions
Why is interest so high at the start of an amortization?
Interest is charged on the remaining balance, which is largest at the start. As you pay down principal, each payment shifts toward principal and away from interest.
What is the difference between mortgage term and amortization in Canada?
The term is the length of your rate contract — often 5 years in Canada. The amortization is how long it takes to pay the mortgage off in full — often 25 years.
Can I shorten my amortization in Canada?
Yes. Lump-sum prepayments or switching to accelerated biweekly payments cut the balance faster. Most Canadian mortgages include a yearly prepayment privilege — a set amount you can pay extra without penalty — so check your contract for the exact limit.
Does this schedule use Canadian semi-annual compounding?
This estimate uses the standard monthly formula. Canadian fixed rates are quoted compounded semi-annually, so your lender's exact schedule may differ by a few dollars.