Visualize your payment schedule, principal/interest breakdown, and total interest paid over your loan term with this Canadian mortgage amortization calculator.
| Year | Payment | Principal | Interest | Balance |
|---|
How this mortgage amortization calculator works
Enter the following inputs to generate your amortization schedule:
- Mortgage Amount — the total loan outstanding
- Interest Rate — the mortgage rate secured on the loan
- Amortization Period — the loan repayment length in years
- Additional Payments — one-off or regular extra payments that help pay off the mortgage faster
The calculator then generates a full payment-by-payment schedule showing how much of each payment goes to principal vs. interest.
What is a mortgage amortization schedule?
An amortization schedule is a complete table of every mortgage payment over the life of your loan, broken down into principal and interest components. It shows you exactly how your balance decreases over time and how much total interest you will pay.
A typical amortization schedule includes:
- Payment number and date
- Payment amount (stays constant for fixed-rate mortgages)
- Interest portion of each payment
- Principal portion of each payment
- Remaining balance after each payment
For a $400,000 mortgage at 5% over 25 years, the first payment might allocate $1,648 to interest and only $681 to principal. By the final year, nearly the entire payment goes toward principal. Understanding this breakdown is essential for making informed decisions about extra payments and refinancing.
Principal vs. interest: how the balance shifts
In the early years of your mortgage, the majority of each payment goes toward interest because the outstanding balance is large. As the balance decreases, the interest portion shrinks and more of each payment reduces the principal.
Example: $400,000 mortgage at 5%, 25-year amortization
| Year | Interest Paid That Year | Principal Paid That Year | Remaining Balance |
|---|---|---|---|
| 1 | $19,530 | $8,332 | $391,668 |
| 5 | $18,145 | $9,717 | $357,460 |
| 10 | $15,607 | $12,255 | $296,632 |
| 15 | $12,195 | $15,667 | $214,804 |
| 20 | $7,665 | $20,197 | $108,208 |
| 25 | $1,617 | $26,245 | $0 |
In year 1, you pay $19,530 in interest but only reduce your balance by $8,332. By year 20, the ratio flips and most of each payment chips away at the principal. This is why making extra payments early in the mortgage provides the greatest interest savings.
Payment frequency and its impact
The payment frequency you choose can significantly affect how quickly you pay off your mortgage and how much total interest you pay:
| Frequency | Payments/Year | Time to Pay Off $400K at 5% | Total Interest Paid | Interest Savings vs. Monthly |
|---|---|---|---|---|
| Monthly | 12 | 25 years | $293,467 | — |
| Bi-weekly | 26 | 25 years | $292,888 | $579 |
| Accelerated bi-weekly | 26 | 21.7 years | $241,073 | $52,394 |
| Weekly | 52 | 25 years | $292,616 | $851 |
| Accelerated weekly | 52 | 21.6 years | $239,831 | $53,636 |
The key difference is in accelerated options. With accelerated bi-weekly payments, you effectively make one extra monthly payment per year. Over the life of a 25-year mortgage this can save over $50,000 in interest and cut more than 3 years off the amortization.
Common amortization periods in Canada
| Amortization | Monthly Payment ($400K at 5%) | Total Interest | Who It’s For |
|---|---|---|---|
| 15 years | $3,163 | $169,413 | Aggressive payoff; high income |
| 20 years | $2,636 | $232,687 | Balanced approach |
| 25 years | $2,326 | $293,467 | Most common; insured mortgages |
| 30 years | $2,138 | $369,660 | Lower payments; requires 20%+ down |
If your down payment is less than 20%, you are limited to a maximum 25-year amortization by CMHC rules. With 20% or more down, you can amortize up to 30 years. A shorter amortization saves significantly on interest but requires higher monthly payments. Use our mortgage calculator to compare payments at different amortization lengths.
The impact of interest rates on amortization
Even small changes in your mortgage rate have a dramatic effect on total interest paid over the amortization:
| Rate | Monthly Payment ($400K, 25yr) | Total Interest Paid | vs. 4% Rate |
|---|---|---|---|
| 3% | $1,893 | $167,921 | −$70,846 |
| 4% | $2,104 | $238,767 | — |
| 5% | $2,326 | $293,467 | +$54,700 |
| 6% | $2,559 | $367,651 | +$128,884 |
| 7% | $2,802 | $440,601 | +$201,834 |
A 2% increase from 4% to 6% adds over $128,000 in total interest. This is why shopping for the best mortgage rate is one of the most impactful financial decisions you can make.
How to read an amortization schedule
An amortization schedule is a table that shows every payment over the life of your mortgage broken down into principal and interest. In the early years, the majority of each payment goes toward interest with only a small portion reducing your principal balance. As you progress, the interest portion decreases and more goes toward principal.
Understanding this breakdown is important because it shows why making extra payments early in your mortgage has such a significant impact. Even modest additional payments in the first few years can save thousands in interest and shorten your amortization. Review your schedule regularly to track your progress toward being mortgage-free.
Strategies to pay off your mortgage faster
- Make extra payments — Even small regular extra payments can make a big difference. $100/month extra on a $400,000 mortgage at 5% saves over $30,000 in interest and cuts 3+ years off the amortization.
- Make lump-sum payments — Use funds from bonuses, tax refunds, or inheritances. Most lenders allow 10–20% of the original balance annually as a prepayment privilege.
- Switch to accelerated bi-weekly payments — The easiest strategy. Effectively makes one extra monthly payment per year with minimal budgeting impact.
- Shorten your amortization at renewal — When renewing, choose a shorter remaining amortization to accelerate payoff.
- Secure a lower rate through refinancing — If rates have dropped, refinancing to a lower rate while keeping the same payment reduces the amortization.
- Round up your payments — If your payment is $2,326, round up to $2,400 or $2,500. The extra goes directly to principal.
Related mortgage calculators
- Mortgage Calculator — Calculate your monthly payment
- Mortgage Extra Payment Calculator — Model the impact of additional payments
- Mortgage Affordability Calculator — See how much home you can afford
- Mortgage Renewal Calculator — Plan for your next term
- Mortgage Refinance Calculator — Evaluate refinancing options