Mortgage Payment & Interest Calculator
Estimate your mortgage payment and the interest you pay, using Canadian semi-annual compounding. Change the rate, term, amortization and payment frequency to see how much goes to interest over your term, year by year and in total.
Average uninsured rates in July 2026, from the Bank of Canada (all mortgage rates)
How long the rate is set for, before you renew. The amortization is how long the whole mortgage takes to pay off.
Your monthly payment
$3,317.50
Loan amount
$600,000
Total interest
$395,251
Total cost
$995,251
Payoff period
25.0 years
Over your 5-year term
Interest
$125,741
Principal
$73,309
Left at renewal
$526,691
63% of what you pay during the term goes to interest.
Rates use Canadian semi-annual compounding. Estimates exclude property tax, condo fees, and insurance.
Interest and Principal, Year by Year
Early payments are mostly interest, because interest is charged on a large balance. As the balance falls, more of each payment goes to principal. The table assumes the same rate for the whole amortization; in practice it is reset at each renewal.
| Year | Interest | Principal | Split | Balance at Year End |
|---|---|---|---|---|
| 1 | $26,421 | $13,389 | $586,611 | |
| 2 | $25,813 | $13,997 | $572,613 | |
| 3 | $25,177 | $14,633 | $557,980 | |
| 4 | $24,513 | $15,297 | $542,683 | |
| 5end of term | $23,818 | $15,992 | $526,691 | |
| 6 | $23,092 | $16,718 | $509,973 | |
| 7 | $22,333 | $17,477 | $492,496 | |
| 8 | $21,539 | $18,271 | $474,226 | |
| 9 | $20,710 | $19,100 | $455,125 | |
| 10 | $19,843 | $19,967 | $435,158 | |
| 11 | $18,936 | $20,874 | $414,284 | |
| 12 | $17,988 | $21,822 | $392,462 | |
| 13 | $16,998 | $22,812 | $369,650 | |
| 14 | $15,962 | $23,848 | $345,802 | |
| 15 | $14,879 | $24,931 | $320,871 | |
| 16 | $13,747 | $26,063 | $294,808 | |
| 17 | $12,564 | $27,246 | $267,561 | |
| 18 | $11,327 | $28,483 | $239,078 | |
| 19 | $10,033 | $29,777 | $209,301 | |
| 20 | $8,681 | $31,129 | $178,172 | |
| 21 | $7,268 | $32,542 | $145,630 | |
| 22 | $5,790 | $34,020 | $111,610 | |
| 23 | $4,246 | $35,564 | $76,046 | |
| 24 | $2,631 | $37,179 | $38,867 | |
| 25 | $943 | $38,867 | $0 | |
| Total | $395,251 | $600,000 |
Interest Principal
Mortgage Interest at Today's Average Rates
The payment and the interest on a $500,000 mortgage over 25 years, at the average rates Canada's banks charged in July 2026 and at their posted 5-year rate. The interest over 25 years assumes the rate never changes.
| Rate Type | Rate | Monthly Payment | Interest, First 5 Years | Interest Over 25 Years |
|---|---|---|---|---|
| Average variable | 3.86% | $2,592 | $89,739 | $277,688 |
| Average fixed, 3 to 5 years | 4.08% | $2,652 | $94,984 | $295,549 |
| Average fixed, 5 years or more | 4.49% | $2,765 | $104,784 | $329,376 |
| Posted 5-year rate | 6.19% | $3,256 | $145,720 | $476,716 |
Each quarter point matters: at 4.74% instead of 4.49%, the payment on this mortgage is about $70 a month higher, and you pay about $5,992 more interest over 5 years.
Every term, insured and uninsured, with the history since 2013, is on our page of average mortgage rates in Canada. Variable rates follow the banks' prime rate, which moves with the Bank of Canada's policy rate: that page has every change and the next announcement date.
How Mortgage Interest Is Calculated in Canada
Fixed-rate mortgages in Canada compound interest twice a year (semi-annually), not monthly. So the monthly rate is not the yearly rate divided by 12: it is the rate that, compounded over six months, adds up to half the yearly rate. Variable-rate mortgages often compound monthly instead.
At 4.49%, the average 5-year fixed rate in July 2026, half the yearly rate is 2.245%, and the monthly rate is (1 + 0.02245)1/6 − 1 = 0.3707%. On a $500,000 mortgage, the first monthly payment of $2,765 includes about $1,854 of interest; the other $911 pays down the principal. Each month the balance is a little lower, so a little less of the payment goes to interest.
Today's Mortgage Rates from Lenders
This calculator works with whatever rate you enter. Compare it with the rates lenders are offering right now, fixed and variable, by term. Change the price, down payment or location to match your purchase.
Ratehub.ca is a mortgage brokerage and comparison site. HousingPortal.ca may be paid when you follow this link; it costs you nothing and we see none of your details. How we're paid
Related guides & tools
The information presented on HousingPortal.ca is intended for general illustrative purposes only. While the information is believed to be reliable, it cannot be guaranteed for accuracy, completeness, or currency. Neither HousingPortal.ca and its employees, nor any other party identified in this guide/report, assumes any liability for the information provided. The views and opinions expressed by the analysts at HousingPortal.ca are their own and should not be considered as investment advice. It is recommended that you seek the advice of a licensed real estate professional before making any decisions regarding real estate investments.