Mortgage Amortization Calculator
Generate a complete amortization schedule showing every payment over the life of your mortgage. See exactly how much principal and interest you pay each period.
Mortgage Details
Payment Summary
$2,838.88
per month
Complete Amortization Schedule
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Understanding Your Amortization Schedule
An amortization schedule is your complete roadmap for paying off your mortgage. It shows every single payment over the life of your loan, breaking down exactly how much goes toward principal (reducing your debt) versus interest (the cost of borrowing).
How Mortgage Amortization Works
Canadian mortgages use semi-annual compounding, which is different from the monthly compounding used in the United States. Interest is calculated twice per year, which results in a slightly lower effective rate than monthly compounding would produce.
In the early years of your mortgage, most of each payment goes toward interest because it's calculated on a large principal balance. As you pay down the principal over time, less interest accrues, so more of each payment reduces your debt. This is why your final payments are almost entirely principal.
Reading Your Amortization Schedule
- Payment Number: Sequential number of each payment over your mortgage term
- Date: When each payment is due based on your chosen frequency
- Payment Amount: Your fixed payment (principal + interest)
- Principal: Amount that reduces your mortgage balance
- Interest: Cost of borrowing, paid to your lender
- Balance: Remaining mortgage amount after each payment
Payment Frequency Impact
Accelerated payment options help you pay off your mortgage faster by making the equivalent of one extra monthly payment per year. For example, accelerated bi-weekly payments take your monthly payment, divide by 2, and pay that amount every two weeks (26 payments = 13 monthly payments instead of 12).
Important Disclaimer
This amortization calculator provides estimates for educational purposes only. Actual mortgage payments may vary based on lender policies, payment processing dates, leap years, and other factors. This tool does not account for property taxes, insurance, or additional fees that may be part of your total housing payment.
Always consult with a qualified mortgage professional before making financial decisions.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table showing every payment over the life of your mortgage, breaking down how much goes to principal versus interest. Early payments are mostly interest, while later payments pay more principal.
How does Canadian mortgage amortization differ from US?
Canadian mortgages use semi-annual compounding (interest calculated twice per year), while US mortgages use monthly compounding. This means Canadian mortgages have a slightly lower effective rate.
Why do early payments have more interest?
Interest is calculated on the remaining balance. Since your balance is highest at the start, you pay more interest initially. As you pay down principal, less interest accrues each month.
Can I save money with extra payments?
Yes. Extra payments reduce your principal faster, which means less interest over time. Even small additional payments can save thousands in interest and reduce your amortization period.
What's the difference between amortization and term?
Amortization is the total time to pay off your mortgage (usually 25-30 years). The term is how long your interest rate is locked in (usually 1-5 years). You'll renew multiple times over your amortization.