Mortgage Payoff Calculator
See how extra payments shrink your amortization and save interest.
Your inputs
The math of prepayment
Every extra dollar goes straight to principal - which means every dollar of interest that would have compounded on top disappears too. This is why small monthly extras have an outsized impact on lifetime interest.
Check your mortgage contract for prepayment privileges before making large extra payments to avoid penalties. Uses Canadian semi-annual compounding.
Frequently Asked Questions
Should I pay down my mortgage or invest?
Compare your mortgage rate to your expected after-tax investment return. In a low-rate environment, investing often wins; when mortgage rates are high, paying down is a guaranteed after-tax return equal to your interest rate.
Are there penalties for extra payments?
Most Canadian mortgages allow prepayment privileges - typically 10-20% of the original balance per year plus increasing your regular payment by the same percentage. Anything above triggers a penalty.
How much do I save with extra payments?
Even $100 extra per month can knock years off a 25-year amortization and save tens of thousands in interest. The impact compounds because every extra dollar reduces the balance interest accrues on.
Is a lump sum better than monthly extra?
Both help. Lump sums applied early in the amortization save the most interest because they cut the principal that compounds. Monthly extras are easier to sustain.
Explore Other Calculators
Browse the full suite on the Financial Calculators hub.
Turn Numbers Into a Plan
Calculators show what is mathematically possible - a plan makes it happen. Let us build a strategy tailored to your goals, tax situation, and province.