Finance Calculators
Mortgage Calculator
A mortgage payment spreads the amount borrowed over the term at the agreed rate: principal and interest every month, with interest weighted towards the early years. Enter the price, the down payment, the term and the rate, and the result shows the monthly payment, the total interest, the payoff date and what extra payments save.
Calculator
Formula Used
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = loan amount (home price minus down payment), r = monthly interest rate, n = total months.
About This Calculator
What It Does
Calculate your monthly mortgage payment based on the home price, your down payment, the loan term, and the interest rate. See the loan amount, total interest, and total repayment over the life of the loan. This calculator covers principal and interest only — it does not include property taxes, homeowners insurance, HOA fees, or mortgage insurance (PMI). Use it to understand how your down payment size, loan term, and interest rate interact. A larger down payment means a smaller loan and less interest. A shorter term means higher payments but dramatically less total interest.
Worked Example
Example 1 — Standard: A CA$400,000 home with CA$80,000 down (20%) leaves a CA$320,000 loan. Over 25 years at 5.5%: monthly payment ≈ CA$1,963. Total interest ≈ CA$268,900. Example 2 — 15-year term: Same CA$320,000 at 5.5% over 15 years: monthly payment ≈ CA$2,614. Total interest ≈ CA$150,500. Saving over CA$118,000 in interest. Example 3 — Larger down payment: A CA$400,000 home with CA$120,000 down (30%) leaves a CA$280,000 loan at 5.5% over 25 years: monthly payment ≈ CA$1,718. Total interest ≈ CA$235,400.
Real-World Usage
Home buyers use this to determine their price range before starting their search. Compare fixed and variable rate scenarios. See how a 15-year vs 30-year term fits your budget. Real estate agents use it to illustrate affordability. Refinancing decisions: compare current loan terms against a new offer. Use it to plan — a larger down payment reduces not just your monthly payment but also the total interest by tens of thousands.
Local Context
Canadian mortgages have a maximum 25-year amortization for insured mortgages (less than 20% down). Rates are typically fixed for 1-5 years. The Bank of Canada rate and bond yields drive pricing. CMHC insurance is required below 20% down. Stress test rules require qualifying at 5.25% or 2% above contract rate. Provincial land transfer taxes add 1-3% upfront.
Variable-Rate Mortgages: How the Rate Is Reset and What to Compare
An adjustable or variable-rate mortgage starts below the going fixed rate, but the interest rate does not stay put: at each reset it is recalculated from a reference index plus a fixed margin. The contract sets the reset periodicity (monthly, quarterly, semi-annual or annual), the index and the margin. Depending on the deal, a rise in the index shows up as a higher monthly payment, a longer loan term, or both; many contracts also put a cap on how far the rate can rise, sometimes with a floor below which it cannot fall. Before signing, compare the APR — fees and required insurance included — rather than the first-year nominal rate alone, and read the reset formula, the periodicity, the index, the margin, the cap and the floor, and what happens to the payment when the rate rises (payment, term, or both). This calculator assumes a fixed rate: for a variable-rate loan, enter the rate from the highest scenario you would have to absorb.
Sources and Methodology
Mortgage estimates use standard amortization formulas plus configured country-specific assumptions for taxes, fees, insurance, or purchase costs where available. Check final affordability, fees, and eligibility with lenders and official housing, tax, or central bank sources for your jurisdiction. For France, the variable-rate rules described above are taken from the French Code de la consommation (articles L313-25 and L313-46) and from the quarterly taux d'usure thresholds published by the Banque de France.
Last reviewed: October 2026.
This is an estimate only and does not constitute a loan offer or commitment. Actual rates, terms, and payments depend on lender policies, credit score, property location, and other factors.
Frequently Asked Questions
How much down payment do I need in Canada?
Minimum 5% for homes under $500,000, 10% for $500,000-$1M, and 20% above $1M. CMHC insurance is required below 20% down, which adds to monthly costs.
What is the mortgage stress test?
Borrowers must qualify at the greater of 5.25% or 2% above their contract rate. This ensures you can still afford payments if rates rise. It affects how much you can borrow.
What is the maximum amortization?
25 years for insured mortgages (less than 20% down). Uninsured mortgages can go up to 30 years. A shorter amortization saves on total interest but increases monthly payments.