Loan Calculator
Work out the monthly payment, total interest and full payoff for any loan amount, rate and term, with a yearly amortization schedule.
Loan details
Your payment
Monthly payment
Yearly amortization
The hidden cost of long loans
A longer term lowers the monthly payment, but you pay interest for more years. On a 25-year mortgage at 6.5%, the interest paid ends up close to the amount you borrowed. Shortening the same loan to 15 years cuts the total interest roughly in half. Run the numbers before you accept the longest term on offer.
How the payment is calculated
The calculator uses the standard amortization formula with monthly payments and monthly compounding. Each payment covers that month's interest first, and the rest reduces the balance. That is why early payments are mostly interest and later payments are mostly principal, as the yearly schedule shows.
Frequently asked questions
Should I make extra payments?
Extra payments made early in the term save the most interest, because they reduce the balance that all future interest is charged on. Even one extra payment per year toward principal can take years off a long mortgage.
Does this include taxes, insurance or fees?
No. The result covers principal and interest only. Add property tax, insurance and any lender fees separately to get your full monthly cost.
Why do Canadian mortgages sometimes differ?
Fixed-rate mortgages in Canada usually compound semi-annually, not monthly, so your lender's payment may be slightly lower than this estimate.