Mortgage Amortization
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See your full payment schedule — the principal vs. interest split every year, total interest paid, and your exact payoff date. Built on Canadian semi-annual compounding.
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Mortgage amortization calculator.
Amortization is how long it takes to pay off your mortgage, usually 25 or 30 years. A longer one lowers each payment but costs more interest. Extra payments shorten it.
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Amortization schedule
How your balance falls — and how the interest/principal split shifts — over 25 years.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $12,103 | $24,757 | $537,897 |
| 2 | $12,665 | $24,195 | $525,231 |
| 3 | $13,253 | $23,607 | $511,978 |
| 4 | $13,869 | $22,992 | $498,109 |
| 5 | $14,513 | $22,348 | $483,597 |
| 6 | $15,186 | $21,674 | $468,411 |
| 7 | $15,891 | $20,969 | $452,519 |
| 8 | $16,629 | $20,231 | $435,890 |
| 9 | $17,401 | $19,459 | $418,489 |
| 10 | $18,209 | $18,651 | $400,280 |
Reading your amortization schedule
Amortization is the total time it takes to pay your mortgage to zero. Insured mortgages are capped at 25 years, or 30 years for first-time buyers and new builds (since December 15, 2024); uninsured mortgages can often go to 30 years. It’s different from your term (1-5 years), which is how long your current rate lasts before renewal. The amortization sets the size of your payment; the term sets the rate you pay during it.
Why your early payments barely touch the balance
Interest is charged on the whole outstanding balance, which is largest at the very start. So your first payments are mostly interest. On a $550,000 mortgage at an assumed 4.59% (illustrative) over 25 years, the first payment is roughly two-thirds interest, one-third principal. As the balance falls, that split steadily flips: principal accelerates and interest shrinks, until in the final years almost the entire payment is principal. The schedule above shows exactly where that crossover happens for your numbers.
A worked example: 25 vs 20 years
Take that $550,000 mortgage at an assumed 4.59% rate (illustrative, not today’s rate; see today’s rates), held constant. Over a 25-year amortization the payment is about $3,070 a month and you pay roughly $370,000 in total interest. Shorten the amortization to 20 years and the payment rises to about $3,490, roughly $420 more a month, but total interest drops by roughly $83,000. That’s the leverage of amortization: a modest payment increase early removes a large amount of compounding interest later. Slide the amortization above to see your own trade-off.
Three ways to pay less interest
You have three levers, and they stack. A shorter amortization cuts the years interest compounds. Accelerated payments sneak in an extra payment a year; see the biweekly calculator. And annual prepayments (many closed mortgages allow 10-20% of the original balance a year penalty-free) go straight to principal. Even small extra principal early, while the balance is large, saves outsized interest. The fourth lever is the rate itself: we shop yours across 100+ lenders so the whole schedule starts lower.
Sources: Department of Finance Canada, mortgage reforms in force December 15, 2024 (30-year insured amortization for first-time buyers and new builds); Financial Consumer Agency of Canada, mortgage terms and amortization.
How to use this calculator
- Enter your mortgage detailsAdd your mortgage amount, interest rate, and amortization period. Results update instantly as you drag the sliders — no sign-up required.
- Read your amortization scheduleSee the year-by-year principal vs. interest split, watch your balance fall to zero, and find out exactly how much interest you will pay over the full term.
- Lock in a lower rateReady to shrink that interest column? We shop 100+ lenders. Bring us a written offer from a big bank. We'll try to beat it. If we can't, we pay you $500. Conditions apply. Most A-lender files close in 3-5 weeks.
How this is calculated
What is mortgage amortization?
Why does so little of my early payment go to principal?
How can I pay less interest over the life of the mortgage?
Does a lower rate or a shorter amortization save more?
What is the maximum amortization period in Canada?
Does Mortgage Squad Advisors charge a fee to review my amortization?
Want a real rate for these numbers?
Bring us a written offer from a big bank. We’ll try to beat it. If we can’t, we pay you $500. Conditions apply. See the conditions
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