Canadian mortgage payment calculator

Fixed-rate mortgages in Canada compound twice a year, not monthly, so US calculators get the payment slightly wrong. This one uses the Canadian method and shows every payment frequency side by side.

The Canadian formula

The Interest Act requires a mortgage to state its rate "calculated yearly or half-yearly, not in advance". For fixed rates, lenders quote the rate compounded semi-annually. To get the rate per payment, convert it like this:

monthly rate i = (1 + r/2)^(2/12) − 1
rate per payment for k payments a year = (1 + r/2)^(2/k) − 1
monthly payment = P × i / (1 − (1 + i)^−n), n = years × 12

At 4.5%, the monthly rate is (1.0225)^(1/6) − 1 = 0.37153%, not 4.5% / 12 = 0.375%. On $500,000 over 25 years that's about $2,767 a month instead of $2,779.

Payment frequencies

We follow the definitions the Financial Consumer Agency of Canada uses. Every payment is based on the monthly payment:

The schedule charges interest each period at the matching rate, rounds to the cent, and makes the last payment whatever clears the balance. The principal column always adds up to exactly the amount borrowed. Your lender's figures may differ by a few cents because of rounding.

Comparing two offers

The payment is only part of the picture. Our guide on how to compare mortgage rates uses this calculator's math to compare two offers over the term, including what happens if you break the mortgage early.

This is an estimate for general information. It is not advice about your situation. Check the final numbers with your lender, your real estate lawyer, or the official source.

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