Canadian Mortgage Calculator
Calculate a Canadian mortgage payment using the semi-annual compounding required by law, not the monthly compounding used in U.S. calculators. Enter price, down payment, rate, and amortization to get an accurate monthly payment in CAD.
How to Use
- Enter the home price in Canadian dollars.
- Enter your down payment in CAD — the mortgage is the price minus this amount.
- Enter the annual interest rate as quoted by your Canadian lender.
- Enter the amortization period in years (25 is standard; up to 30 for some buyers).
- Read the monthly payment, which uses the legally required semi-annual compounding conversion.
Show Work
Formula
About the Canadian Mortgage Calculator
The Canadian Mortgage Calculator is a free tool for personal-finance and money decisions. It runs right in your web browser, so there is nothing to download. Calculate a Canadian mortgage payment using the semi-annual compounding required by law, not the monthly compounding used in U.S. calculators. Enter price, down payment, rate, and amortization to get an accurate monthly payment in CAD.
How it works
Type your numbers into the boxes. The answer shows up right away — you do not have to press a button. If you change a number, the answer changes too. So you can try different numbers and watch what happens, or check an answer you worked out yourself. Just make sure each box has the right kind of number in it.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
Why are Canadian mortgages compounded semi-annually?
Canada's Interest Act requires that the interest on most fixed-rate mortgages be compounded no more than twice a year. So even though you pay monthly, the quoted annual rate is converted from a semi-annual basis to a monthly equivalent rate, which makes the effective monthly rate slightly lower than simply dividing the annual rate by 12. This is the key difference from U.S. mortgages, which compound monthly.
How does the semi-annual conversion work?
The calculator takes the quoted annual rate, treats it as compounded twice a year, and converts it to an equivalent monthly rate using mr = (1 + rate/2)^(1/6) − 1. That monthly rate then drives the standard amortizing payment formula. The result is a marginally lower payment than the U.S. monthly-compounding method would produce for the same headline rate.
What's the difference between the term and the amortization period?
Amortization is the total time to pay the mortgage off in full — commonly 25 years in Canada. The term is the length of your current rate contract, usually 1 to 5 years, after which you renew at prevailing rates. This calculator works with the amortization period to compute the payment; you would re-run it at renewal with the new rate and remaining balance.
Do I need mortgage default insurance?
In Canada, if your down payment is less than 20% of the purchase price, you generally must carry mortgage default insurance (CMHC, Sagen, or Canada Guaranty). The premium is typically added to the mortgage principal. This calculator estimates the principal-and-interest payment and does not include the insurance premium or property taxes, so budget for those separately.
Are Canadian mortgage rates fixed for the whole amortization?
Usually not. Most Canadian mortgages are fixed only for the term (often 5 years), then renew at whatever rates prevail. Variable-rate mortgages move with the lender's prime rate. Because of renewals, your payment can change over a 25-year amortization, so treat this figure as an estimate for the current term, not financial advice for the full life of the loan.
How do I use the Canadian Mortgage Calculator?
Just type your numbers. The answer shows up right away — there is no button to press. Change anything and it updates by itself.
Is it free? Does it work without internet?
Yes to both. It is free with no sign-up, and once the page has loaded it keeps working even with no internet.
Where does my data go?
Nowhere — every calculation runs on your own device. Nothing you enter is uploaded, logged, or stored.
Common Use Cases
Budgeting a Canadian home purchase
Get an accurate monthly payment in CAD that reflects the legally required semi-annual compounding.
Comparing amortization lengths
See how stretching from 25 to 30 years lowers the payment but raises lifetime interest.
Estimating a renewal payment
Re-run with the new rate and remaining balance at term end to forecast your payment after renewal.
Testing down-payment scenarios
Adjust the down payment to see how reaching 20% changes the mortgage size and payment.
Comparing Canadian vs. other markets
Contrast a Canadian semi-annual payment against a U.S. or UK equivalent on the same price and rate.
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