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Compare a fixed-rate mortgage plan with an immediate lump-sum prepayment, a higher regular payment, or both. Estimate interest saved and how much sooner the mortgage could be paid off.
This is a generic impact estimate, not a mortgage prepayment penalty calculator or lender quote. Check your contract before changing a payment.
Mortgage Prepayment Calculator Canada
Mortgage estimate updated. The prepayment scenario saves 3 years, 3 months and $39,276.51 in estimated interest.
Estimated comparison
The model estimates a $2,252.94 monthly payment before optional prepayments.
Selected checkpoints use the entered frequency and the prepayment scenario. Dates are approximate calendar months.
On a small screen, scroll the table sideways to see every column.
| Payment and estimated month | Payment | Principal | Interest | Remaining balance |
|---|---|---|---|---|
| Starting balanceDate available after page load | — | — | — | $350,000.00 |
| Lump-sum prepaymentDate available after page load | $10,000.00 | $10,000.00 | $0.00 | $340,000.00 |
| Payment 1Date available after page load | $2,452.94 | $1,120.23 | $1,332.71 | $338,879.77 |
| Payment 6Date available after page load | $2,452.94 | $1,142.36 | $1,310.58 | $333,212.41 |
| Payment 12Date available after page load | $2,452.94 | $1,169.49 | $1,283.45 | $326,263.61 |
| Payment 50Date available after page load | $2,452.94 | $1,356.93 | $1,096.01 | $278,256.07 |
| Payment 101Date available after page load | $2,452.94 | $1,656.55 | $796.38 | $201,516.18 |
| Payment 151Date available after page load | $2,452.94 | $2,014.44 | $438.49 | $109,853.64 |
| Payment 201Date available after page load | $840.91 | $837.63 | $3.28 | $0.00 |
CAD estimate only. The fixed rate is assumed to stay unchanged for the full modeled amortization. Contract privileges, penalties, renewal rates, taxes, and insurance are not included.
Calculation methodology
(1 + j / 2)^(2 / m) - 1.This estimate holds one fixed interest rate through the entire remaining amortization. A real Canadian mortgage usually has a shorter term and may renew at a different rate. Contract-specific rounding, payment dates, daily interest, fees, taxes, insurance, and processing can also change a lender's schedule.
Scotiabank's current calculator likewise discloses a semi-annually compounded, not-in-advance assumption and a constant rate for its illustration. The federal Interest Act requires certain blended-payment mortgage contracts to state the interest rate calculated yearly or half-yearly, not in advance. Your own contract remains the source of truth. See the Scotiabank calculator assumptions and Interest Act section 6.
Contract rules
The Financial Consumer Agency of Canada explains that a mortgage contract may let you increase regular payments or make lump-sum payments. The permitted amount, timing, minimums, carry-forward treatment, and charges vary. An open mortgage can generally be prepaid without a penalty; a closed mortgage usually has limited penalty-free privileges.
Current public bank examples differ materially: RBC describes principal-payment and Double-Up options; TD describes a 15% original-principal privilege and larger regular payments for cited products; BMO describes product-specific 10% and 20% options; and Scotiabank describes 10%, 15%, or 20% options depending on the mortgage. Those are examples, not universal Canadian rules.
Before acting, review the terms shown in your mortgage agreement or ask your lender. The federal guidance is available from FCAC's paying-off-faster guide and its prepayment-penalty guide.
Tested examples
These examples are generated by the same calculation function as the live tool and asserted in automated regression tests. CAD values are rounded to the nearest cent for display.
Questions about mortgage prepayments
It is money paid toward mortgage principal in addition to the scheduled principal-and-interest payment. It may be a lump sum or an increase to regular payments, subject to the contract.
This calculator assumes the regular payment stays unchanged, so the lump sum shortens the modeled payoff time. A lender may instead recalculate a payment in some circumstances; confirm how your lender applies it.
Money applied earlier generally reduces principal sooner, but the better practical choice depends on cash flow, timing, and contract privileges. Use both fields to compare the mathematical scenarios, then check the agreement.
It is the amount and type of additional payment a contract permits without a prepayment charge. The percentage, base amount, allowed dates, and carry-forward rules vary by lender and product.
Open mortgages generally allow partial or full prepayment without a penalty. Closed mortgages usually limit penalty-free prepayments and may charge when the contract limit is exceeded or the mortgage is broken.
No. It does not calculate three months' interest, an interest-rate differential, a discharge fee, cash-back recovery, or any lender-specific charge. Use a lender quote or its official charge calculator for that purpose.
The nominal annual rate is converted from semi-annual compounding, not in advance, to an effective rate for the selected regular payment frequency. The model does not apply this fixed-rate convention to variable products.
No. This calculator's biweekly option derives 26 equal payments from the entered amortization. An accelerated biweekly plan is often based on half a monthly payment every two weeks, but exact lender rules can differ.
Use this mortgage calculator for the Canadian fixed-rate semi-annual compounding model. For a non-mortgage fixed-rate installment loan with a known monthly payment, use the Loan Early Payoff Calculator Canada.
Methodology reviewed: August 19, 2026. The calculation logic is regression-tested. Published examples use the same function as the live tool, and changes are checked against semi-annual rate conversion, multiple payment frequencies, 0% interest, immediate payoff, and validation cases.
Found a possible issue? Send a correction request. Reports are reviewed against the implementation and test cases before the calculation or explanation is changed.