See how prepayments reduce your amortization
Mortgage Prepayment Calculator Canada
Calculate how Canadian mortgage prepayments reduce your amortization period and total interest paid. Supports both monthly prepayments and annual lump sums.
Enter your details
Added to your regular payment each month
Applied once per year
Total interest saved
$59,294
Paid off 2 yr 8 mo sooner by paying an extra $200/month
Old payoff
25 years
$471,667 total interest
New payoff
22 yr 4 mo
$412,373 total interest
Time saved
2 yr 8 mo
Interest saved
$59,294
Monthly payment comparison
Current monthly payment
$3,439
New monthly payment
$3,639
How this calculator works
Canadian mortgage contracts typically allow prepayments of 10–20% of the original loan amount per year without penalty. Taking advantage of your annual prepayment privilege can dramatically reduce your amortization period and save tens of thousands in interest.
Most Canadian lenders allow two types of prepayments: increasing your regular payment (often by up to 100%) or making lump-sum payments once per year. Combined, these can cut years off a 25-year amortization.
Remember that Canadian mortgage rates are compounded semi-annually, which this calculator correctly accounts for in computing your interest savings.
Worked example
- 1Standard monthly payment: CA$3,394
- 2New effective payment: CA$3,894/month
- 3Standard total interest: CA$458,200
- 4With CA$500 extra/month: CA$322,600
- 5Interest saved: ~CA$135,600 | Time saved: ~7 years 4 months
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Mortgage rules, taxes, and CMHC insurance requirements vary by province. Consult a licensed mortgage broker before making financial decisions.