Mortgage Payment Calculator

Monthly payment and total interest, with US monthly or Canadian semi-annual compounding.

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Canadian fixed-rate mortgages compound semi-annually.

Fill in the empty fields to see the result.

Pre-filled values are rough starting assumptions (5% interest, 30-year amortization, renovation at 10% of the price, carrying costs at 4% of the price a year), not estimates for any particular property. Change any of them to fit the deal.

How the mortgage payment calculator works

The monthly payment on a fixed-rate mortgage depends on the loan amount, the interest rate, how many years it is spread over (the amortization), and how the rate compounds. In the US, mortgage rates compound monthly. In Canada, fixed-rate mortgages compound semi-annually, so the same quoted rate gives a slightly lower payment.

The formula

Payment = L × r ÷ (1 − (1 + r)−n), where L is the loan, n the number of monthly payments, and r the monthly rate:

  • US (monthly compounding): r = annual rate ÷ 12
  • Canada (semi-annual compounding): r = (1 + annual rate ÷ 2)1/6 − 1

Worked example

A $320,000 loan at 6% over 30 years costs $1,918.56 a month with US monthly compounding, and $1,903.43 with Canadian semi-annual compounding.

What to watch

  • The payment here is principal and interest only. Property tax, insurance and any mortgage insurance come on top.
  • Investment properties usually need a larger down payment and carry a higher rate than a home you live in.