Mortgage Payoff Calculator Canada
Find out how much faster you could be mortgage-free. Add extra monthly payments or a yearly lump sum and see your new payoff date, time saved, and interest saved — calculated with Canadian semi-annual compounding.
Your Mortgage
🏠 Balance & Rate
💳 Payments
⚡ Extra Payments
Lump sum applied to principal once a year.
Paying Off Your Mortgage Early in Canada
How extra payments shorten your mortgage
Every mortgage payment is split between interest and principal. Your required payment is fixed, but any extra you send goes straight to principal. That shrinks the balance future interest is charged on — so each extra dollar early in your mortgage saves more than the same dollar later. Canadian fixed rates compound semi-annually, which is exactly how this calculator runs the numbers.
Monthly extras vs annual lump sums
A steady extra amount each payment period usually beats one lump sum a year, because the money starts reducing your balance sooner. But a yearly lump sum — from a bonus, tax refund, or savings — still makes a real dent. Try both above: even $200 extra a month on a typical mortgage can shave years off the schedule and save tens of thousands in interest.
Watch your prepayment privileges
Most Canadian lenders let you prepay roughly 15–20% of the original balance per year without penalty — but that's typical, not a rule, and your contract is what counts. Go over your limit and you could face a prepayment charge: for a fixed-rate mortgage, that's usually the greater of 3 months' interest or the interest-rate differential (IRD). Check your mortgage terms before sending big lump sums.
Why the early years matter most
Early in your amortization, most of each payment goes to interest and only a slice touches principal. Extra payments flip that dynamic: they attack principal when the balance is highest, which is when each dollar has the biggest effect on total interest. If you're going to prepay aggressively, doing it sooner rather than later pays off more.
The numbers above are estimates to help you plan — confirm the final schedule with your lender. Adjust the extras, watch the payoff date move, and come back whenever your rate changes.