Canada
Canada amortization calculator
A year-by-year breakdown of how each payment splits between interest and principal, and how the balance falls over time.
Your mortgage
Year-by-year breakdown
Total interest: $275,826 · Paid off August 2051
Early on, most of each payment is interest; the balance falls slowly at first, then faster. That's the shape of every amortizing mortgage.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $5,399 | $17,634 | $294,601 |
| 2 | $5,728 | $17,305 | $288,873 |
| 3 | $6,077 | $16,956 | $282,796 |
| 4 | $6,447 | $16,586 | $276,350 |
| 5 | $6,839 | $16,194 | $269,510 |
| 6 | $7,256 | $15,777 | $262,254 |
| 7 | $7,698 | $15,335 | $254,556 |
| 8 | $8,167 | $14,866 | $246,390 |
| 9 | $8,664 | $14,369 | $237,726 |
| 10 | $9,192 | $13,841 | $228,534 |
| 11 | $9,751 | $13,282 | $218,783 |
| 12 | $10,345 | $12,688 | $208,438 |
| 13 | $10,975 | $12,058 | $197,462 |
| 14 | $11,644 | $11,389 | $185,819 |
| 15 | $12,353 | $10,680 | $173,466 |
| 16 | $13,105 | $9,928 | $160,361 |
| 17 | $13,903 | $9,130 | $146,458 |
| 18 | $14,750 | $8,283 | $131,708 |
| 19 | $15,648 | $7,385 | $116,060 |
| 20 | $16,601 | $6,432 | $99,459 |
| 21 | $17,612 | $5,421 | $81,847 |
| 22 | $18,685 | $4,348 | $63,163 |
| 23 | $19,822 | $3,211 | $43,340 |
| 24 | $21,030 | $2,003 | $22,310 |
| 25 | $22,310 | $723 | $0 |
An estimate for planning — not financial advice. Principal & interest only; property tax, insurance and any fees are separate.
A Canadian amortization schedule shows how each payment splits between interest and principal — with one wrinkle: Canadian mortgages compound interest semi-annually, so the schedule differs slightly from a US loan at the same posted rate. This calculator lays out the full breakdown.
How this calculator works
Interest is worked out with the semi-annual compounding convention, then applied monthly; the rest of your payment pays down principal. Early payments are mostly interest, shifting toward principal over time.
Canadian mortgages also renew — you typically hold a five-year term inside a 25-year amortization — so you'll re-sign several times before the schedule completes.
Seeing the schedule helps you weigh a shorter amortization, which saves interest, against a longer one, which lowers the payment.
A worked example
A $500,000 loan at a 6.5% example rate over 25 years, semi-annual compounding — year one:
- Monthly payment (P&I)
- $3,349/mo
- Interest paid in year 1
- $31,825
- Principal paid in year 1
- $8,364
- Total interest over 25 years
- $504,736
A 25-year amortization pays far less total interest than a 30-year one at the same rate.
Who it's for
- You want the Canadian interest-vs-principal breakdown.
- You're unsure how term differs from amortization.
- You're deciding whether to shorten your amortization.
Frequently asked questions
How does amortization work in Canada?
Interest is computed with semi-annual compounding on the outstanding balance, and the remainder of the payment reduces principal — mostly interest early on, shifting to principal over the years.
What's the difference between term and amortization?
The amortization is the full payoff period (often 25 years); the term is the length of your current rate contract (often five years), after which you renew.
How much interest will I pay over the amortization?
It depends on rate and length — a $500,000 loan at 6.5% over 25 years is shown above. A shorter amortization cuts this substantially.
Can prepayments shorten the amortization?
Yes — within your lender's prepayment privileges, lump sums and payment increases go straight to principal and shorten the schedule. See the overpayment calculator.