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Canadian Mortgage Calculator

Work out a Canadian fixed-rate mortgage payment with half-yearly compounding, for monthly, bi-weekly, weekly and accelerated plans.

By Nitin Raturi · Last reviewed

Your worksheet

How to use the Canadian Mortgage Calculator

Work out a fixed-rate mortgage payment with half-yearly compounding.

  1. Enter the mortgage amount.
  2. Enter the fixed rate your lender quotes.
  3. Choose the amortization and how often you pay.
  4. Read the payment, then compare plans in the table.

Good to know

  • The address stores your figures for sharing; anyone with the link can read them.
  • Prepayments and renewals at a new rate are not modelled.

Mortgage payments with the rate compounded half-yearly, as Canadian fixed-rate mortgages are quoted, for regular and accelerated schedules.

Mortgage amount

What you borrow, after the down payment, including any insurance premium added to the loan.

How to fill it in

  • Enter Canadian dollars, digits only.

Example

$500,000 at 4.5% over 25 years costs $2,767.36 a month.

Interest rate

The fixed annual rate your lender quotes, compounded half-yearly.

How to fill it in

  • Enter 0% to 20%.

Example

4.5% compounded half-yearly is an effective 4.55% a year.

Amortization

The years it would take to repay in full at this rate.

How to fill it in

  • Enter 1 to 30 years; 25 is common.

Payment frequency

How often you pay.

How to fill it in

  • Regular plans spread the same yearly cost over more payments.
  • Accelerated bi-weekly pays half the monthly payment every two weeks, which adds about one monthly payment a year.

Example

Accelerated bi-weekly on the default mortgage is $1,383.68, paid off in 564 payments.

Monthly payment

$2,767.36

$500,000.00 at 4.5% compounded half-yearly costs $2,767.36 per payment. It is paid off after 300 payments (25 years), with $330,209.43 of interest.

Payments a year
12
Number of payments
300
Total interest
$330,209.43
Total paid
$830,209.43
Effective annual rate
4.5506%
Monthly payment for comparison
$2,767.36

In practice the term (often 5 years) is shorter than the amortization; the rate is renewed at the end of each term, so later payments can change.

Variable-rate mortgages may compound monthly; this calculator is for fixed rates.

Fixed rate for the whole amortization, compounded half-yearly as the Interest Act and Canadian practice require for fixed-rate mortgages. No prepayments, fees or mortgage insurance.

Full schedule and CSV

Display rounds only for reading. CSV preserves full precision.

Interest by plan for this mortgage
PlanPayment (CAD)PaymentsTotal interest (CAD)
Monthly (12 a year)$2,767.36300$330,209.43
Semi-monthly (24 a year)$1,382.40600$329,439.74
Bi-weekly (26 a year)$1,275.97650$329,380.57
Weekly (52 a year)$637.711300$329,025.68
Accelerated bi-weekly$1,383.68564$280,131.25
Accelerated weekly$691.841127$279,569.26

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Quoted rate4.5%Fixed, compounded half-yearly.
  2. Step 2Rate per payment(1 + j/2)^(2/p) − 1Exact equivalent for p payments a year.
  3. Step 3Level payment$2,767.36Clears the loan over the amortization.

Canada’s Interest Act requires a mortgage with blended payments to state its rate calculated yearly or half-yearly. Fixed-rate mortgages are quoted compounded half-yearly, unlike the monthly compounding common in the US.

So a 4.5% quote means 2.25% every six months, an effective 4.5506% a year. The calculator converts that to the exact rate for each payment.

Worked example: $500,000 at 4.5% over 25 years

Monthly payment with half-yearly compounding
Monthly rate
i = (1 + 0.045/2)^(1/6) − 1
Payment
P × i ÷ (1 − (1 + i)^−300)
  1. Monthly rate0.3715%
  2. Payments300
  3. Monthly payment$2,767.36
  4. Total interest$330,209.43

The Financial Consumer Agency of Canada’s calculator gives the same $2,767.36 and $330,209.43. For $100,000 at 5%, both give $581.60.

Accelerated payments save interest

  • Monthly$330,209.43
  • Bi-weekly$329,380.57
  • Accelerated bi-weekly$280,131.25
  • Accelerated weekly$279,569.26
Total interest on $500,000 at 4.5% over 25 years

Accelerated bi-weekly pays half a monthly payment 26 times a year: 13 monthly payments instead of 12. The extra goes to principal.

A shorter amortization

  • 25 years$2,767.36Interest $330,209.43.
  • 20 years$3,152.03Interest $256,486.19.

The FCAC calculator converts weekly, bi-weekly and semi-monthly rates from the monthly rate, so its figures for those plans can differ from this one by cents to about a dollar; monthly figures agree exactly.

Canadian lenders compound fixed rates half-yearly, in line with the Interest Act. Most other mortgages compound monthly.

For a standard monthly-compounded mortgage, use the mortgage calculator. The amortization calculator shows each month’s split, and the VA mortgage calculator covers a US VA loan.

Common mistakes

  • Mistake: Using a US mortgage calculator with monthly compounding.

    Instead: Canadian fixed rates compound half-yearly; the payment is slightly lower.

  • Mistake: Assuming the rate holds for 25 years.

    Instead: The rate renews each term, often every 5 years.

  • Mistake: Choosing plain bi-weekly to pay off faster.

    Instead: Only accelerated plans add the extra payment.

Methodology and sources

A separate script finds each payment by bisection and walks the schedule, and reproduces the FCAC calculator’s monthly figures.

The compounding rule comes from section 6 of the Interest Act. Sources, the review date and the financial disclaimer follow.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

Why do Canadian mortgages compound half-yearly?

Section 6 of the Interest Act requires a blended-payment mortgage to state its rate calculated yearly or half-yearly, not in advance. Fixed-rate mortgages are quoted half-yearly.

What is the payment on a $500,000 mortgage at 4.5%?

Over 25 years, $2,767.36 a month, with $330,209.43 of interest in total.

Does this match the government’s calculator?

For monthly payments, yes: $100,000 at 5% over 25 years gives $581.60 here and in the FCAC calculator.

How much does accelerated bi-weekly save?

On $500,000 at 4.5% over 25 years, interest falls to $280,131.25 and the loan is paid off in 564 payments.

Does it work for variable-rate mortgages?

Not exactly. Variable rates can compound monthly and change during the term; this calculator assumes a fixed rate.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 4 Nov 2026; next review due by . Found an error? Tell us.

Changelog

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