Canadian Mortgage CalculatorFree online financial calculator — instant results, no sign-up
Canadian mortgages compound semi-annually; see your payment.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Canadian Mortgage Calculator
This calculator determines the monthly payment and total interest cost for a Canadian mortgage. Unlike standard loans in many other countries that compound monthly, Canadian fixed-rate mortgages are compounded semi-annually by law, altering the effective monthly interest rate.
- Mortgage amount
- The total principal balance borrowed to finance the property, in dollars (typically $50,000 to $5,000,000).
- Rate
- The annual nominal mortgage interest rate as a percentage (e.g., 5 for 5.00%).
- Amortization
- The total number of years over which the mortgage balance will be paid off completely (commonly 20, 25, or 30 years).
Formula and method
r = (1 + Rate / 200)^(1/6) - 1; k = Amortization × 12; Monthly Payment = Mortgage Amount × r / (1 - (1 + r)^(-k)); Total Interest = (Monthly Payment × k) - Mortgage Amount
- rEffective monthly interest rate derived from semi-annual compounding
- RateStated nominal annual interest rate in percent
- kTotal number of monthly payments across the amortization period
- Mortgage AmountInitial principal loan balance borrowed
The tool converts the nominal annual interest rate into an effective monthly interest rate using semi-annual compounding conventions: r = (1 + Rate / 200)^(1/6) - 1. It then multiplies the amortization years by 12 to find total payment intervals and calculates the fixed monthly payment using the standard annuity formula. Total interest is derived by subtracting the original principal from the sum of all monthly payments.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Mortgage amount500000 $
- Rate5 %
- Amortization25 years
Results
- Monthly payment$2,908.02
- Total interest$372,407.48
How to use the Canadian Mortgage Calculator
- 1Convert the nominal percentage rate into an effective monthly interest rate via semi-annual compounding.
- 2Calculate the total number of payments by multiplying the amortization term in years by 12.
- 3Apply the standard fixed-annuity formula using the effective monthly rate to establish the monthly payment.
- 4Multiply the monthly payment by the payment count and subtract the principal to determine total lifetime interest.
Reading your result
The 'Monthly payment' shows the regular principal and interest cost due each month under the specified rate. 'Total interest' shows the cumulative borrowing fee paid over the entire amortization term if the rate remains constant throughout.
Limitations
The calculation assumes fixed monthly payments over the entire amortization period and does not account for Canadian mortgage renewal terms (typically 3 to 5 years), variable rate adjustments, CMHC mortgage default insurance premiums, property taxes, or prepayment privileges.
Common questions
Why do Canadian mortgages compound semi-annually?+
Under the federal Canadian Interest Act, interest on real estate mortgages cannot be compounded more frequently than semi-annually unless otherwise explicitly contracted. As a result, Canadian fixed-rate mortgages use semi-annual compounding.
How does semi-annual compounding affect my monthly payment compared to US mortgages?+
Because Canadian mortgages compound semi-annually rather than monthly, the effective monthly interest rate is slightly lower than that of a standard US mortgage with the same nominal rate, resulting in slightly lower payments.
Does this calculation reflect a standard mortgage term in Canada?+
Canadian mortgages generally have a term of 1 to 5 years within a longer amortization period (such as 25 years). This calculator assumes the entered interest rate remains unchanged across the entire amortization period.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.