Amortization Calculator
Calculate your complete loan repayment schedule and see how extra payments can save you money and time.
Your monthly payment
$2,326.42
Total principal
$400,000.00
Total interest
$297,925.98
Total cost
$697,925.98
Amortization Summary
Payment Breakdown
Yearly Amortization Preview
| Year | Principal Paid | Interest Paid | Total Payment | Remaining Balance |
|---|---|---|---|---|
| 1 | $8,309.03 | $19,608.01 | $27,917.04 | $391,690.97 |
| 2 | $8,729.67 | $19,187.37 | $27,917.04 | $382,961.30 |
| 3 | $9,171.61 | $18,745.43 | $27,917.04 | $373,789.69 |
| 4 | $9,635.92 | $18,281.12 | $27,917.04 | $364,153.77 |
| 5 | $10,123.74 | $17,793.30 | $27,917.04 | $354,030.03 |
About Amortization in Canada
In Canada, amortization periods typically range from 5 to 30 years, with 25 years being the most common for mortgages. The longer the amortization period, the lower your regular payments will be, but the more interest you'll pay over the life of the loan.
Canadian mortgages are typically compounded semi-annually, which is different from many other countries. This means interest is calculated twice a year, even if you make payments monthly, bi-weekly, or weekly.
Making extra payments can significantly reduce your amortization period and save you thousands in interest costs. Most Canadian mortgages allow for annual prepayment privileges of 10-20% of the original principal without penalty.
Accelerated bi-weekly payments can help you pay off your mortgage faster. Instead of making 26 payments per year (regular bi-weekly), you make 26 payments that are each half of a monthly payment, effectively making one extra monthly payment per year.