Free calculator
Mortgage Overpayment Calculator | Canada
Use this calculator when you want to know whether overpaying your mortgage meaningfully shortens the term or saves enough interest to justify giving up the cash elsewhere. It is strongest when you compare a modest recurring overpayment with doing nothing, saving the same money, or remortgaging later.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
Months Saved
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Interest Saved
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Normal Payment
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Browse Finance & Mortgages calculators
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Example
Example: adding a small overpayment to a standard mortgage
A realistic example to help you understand how the numbers fit together.
Outstanding mortgage
CA$400,000
Current rate
5.1%
Remaining term
22 years
Monthly overpayment
CA$250
Even a modest overpayment can remove years from the term. The decision becomes clearer once you compare that saving with other uses for the same cash.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
How does the mortgage calculator work?
This calculator uses the standard amortisation formula to compute monthly payments based on loan amount, interest rate, and term. The formula accounts for compound interest accrued monthly over the loan period.
What inputs do I need to calculate a mortgage payment?
You need three pieces of information: the loan amount (principal), the annual interest rate as a percentage, and the loan term in years. These values are multiplied by the number of monthly periods to determine your payment.
Is this mortgage calculator accurate?
This calculator provides accurate estimates based on standard amortisation. However, it does not include property taxes, insurance, homeowners' association fees, or potential rate adjustments. Always verify with your lender for official figures.
Can I use this calculator for buy-to-let mortgages?
Yes, this calculator works for any mortgage type. Simply enter your loan amount, interest rate, and term. Note that buy-to-let mortgages may have different rates and terms than residential mortgages.
What does the monthly payment figure mean?
The monthly payment is the amount you must pay each month to fully repay your mortgage over the specified term. This covers both principal and interest, though it excludes taxes, insurance, and other fees.
How often should I recalculate my mortgage?
Recalculate if your circumstances change: when rates change, if you're considering overpayments, or if you're evaluating refinancing options. Annual reviews are recommended to stay informed about your debt.
Is my financial data private?
All calculations are performed in your browser. We do not store, transmit, or log any of your input data. For more information, please see our privacy policy.
What assumptions does this calculator make?
This calculator assumes a standard amortising mortgage with fixed monthly payments throughout the term. It does not account for variable rates, payment holidays, offset mortgages, or early repayment penalties.
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