Quick answer
Canadian fixed-rate mortgages compound semi-annually: the monthly rate is i = (1 + r ÷ 2)^(2÷12) − 1 and payment = L·i ÷ (1 − (1 + i)^−n). A $500,000 home with $100,000 down at a quoted 5% over 25 years has a $400,000 loan and a payment of $2,326.42.
Enter the home price, down payment, quoted annual rate and amortisation. The calculator returns the monthly payment and loan amount.
Related tools: Mortgage Calculator: Monthly mortgage payment with property tax, insurance and HOA. VA Mortgage Calculator: Monthly payment with a financed funding fee you enter. House Affordability Calculator: Estimate the most expensive home your income supports.
How to use the Canadian Mortgage Calculator
- Enter home price ($) (above 0).
- Enter down payment ($) (0 or more).
- Enter quoted annual rate (%) (between 0 and 100).
- Enter amortization (years) (between 0 and 50). It starts at 25.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Home price | A number, in $ | > 0 |
| Down payment | A number, in $ | ≥ 0 |
| Quoted annual rate | A number, in % | ≥ 0, ≤ 100 |
| Amortization | A number, in years | > 0, ≤ 50, starts at 25 |
Formula and method
Formula
i = (1 + r ÷ 2)^(2÷12) − 1; payment = L·i ÷ (1 − (1 + i)^−n)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Fixed-rate mortgages in Canada are quoted with semi-annual compounding; mortgage insurance premiums are excluded.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Home price = 500000; Down payment = 100000; Quoted annual rate = 5; Amortization = 25.
| Result | Value |
|---|---|
| Monthly payment | $2,326.42 |
| Loan amount | $400,000.00 |
Example 2
Inputs: Home price = 350000; Down payment = 70000; Quoted annual rate = 4.5; Amortization = 30.
| Result | Value |
|---|---|
| Monthly payment | $1,411.80 |
| Loan amount | $280,000.00 |
The first line is the headline result (monthly payment). Below it the canadian Mortgage Calculator lists loan amount, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Why semi-annual compounding
Canadian law requires fixed-rate mortgages to be quoted with semi-annual compounding, so a 5% quote has an effective monthly rate of 0.4124%, slightly lower than the US method (5% ÷ 12 = 0.4167%).
Not included
CMHC mortgage insurance is required with less than 20% down and isn't included; neither are property tax, heating and closing costs. The down payment must be below the price.
How the result changes with home price
Holding every other input at the first worked example, this table changes only home price. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Home price | Monthly payment | Loan amount |
|---|---|---|
| 250000 | $872.41 | $150,000.00 |
| 500000 | $2,326.42 | $400,000.00 |
| 1000000 | $5,234.44 | $900,000.00 |
| 2000000 | $11,050.49 | $1,900,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Down payment: entering "100" shows "The down payment must be less than the price." beside that field and no result.
- Home price: entering "0" shows "Home price must be greater than 0." beside that field and no result.
Choosing between the Canadian Mortgage Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Mortgage Calculator](/real-estate/mortgage-calculator/) | home price, down payment and interest rate | Total monthly payment |
| [VA Mortgage Calculator](/real-estate/va-mortgage-calculator/) | home price, down payment and interest rate | Monthly payment |
| [House Affordability Calculator](/real-estate/house-affordability-calculator/) | annual gross income, other monthly debt payments and down payment | Estimated maximum home price |
| [Down Payment Calculator](/real-estate/down-payment-calculator/) | home price and down payment | Down payment |
| [FHA Loan Calculator](/finance/fha-loan-calculator/) | home price, down payment and interest rate | Monthly payment (P&I + MIP) |
Background: loans and mortgages
The interest rate is the cost of borrowing the principal; the APR also folds in certain fees, so a lower rate with high fees can have a worse APR. These calculators use the rate you enter and do not add fees, insurance or taxes, so add fees to the principal if you want to include them.
A fixed-rate loan is paid in equal instalments, early ones mostly interest. Extra payments go straight to principal, which shortens the loan and cuts interest; adjustable rates, escrow changes and prepayment penalties are not modelled.
Assumptions and limitations
- Down payment must be below the price
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for down payment and home price to confirm this.
Frequently asked questions
What is a typical amortisation in Canada?
25 years, up to 30 with insurance.
What is the stress test?
Qualifying at a higher rate.
Why is the payment lower than the US method?
Because of the compounding convention.
What does the Canadian Mortgage Calculator calculate?
Monthly payment with semi-annual compounding of the quoted rate. It returns Monthly payment and Loan amount.
What formula does the Canadian Mortgage Calculator use?
i = (1 + r ÷ 2)^(2÷12) − 1; payment = L·i ÷ (1 − (1 + i)^−n). Fixed-rate mortgages in Canada are quoted with semi-annual compounding; mortgage insurance premiums are excluded.
What do I need to enter in the canadian Mortgage Calculator?
You enter Home price ($), Down payment ($), Quoted annual rate (%) and Amortization (years).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Down payment must be below the price.
What is an example of a canadian Mortgage result?
With home price 500000, down payment 100000, quoted annual rate 5 and amortization 25, the monthly payment is $2,326.42.
Can I rely on this calculator for a decision?
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional. For this calculator in particular: Down payment must be below the price.
Related calculators
- Mortgage Calculator — Monthly mortgage payment with property tax, insurance and HOA.
- VA Mortgage Calculator — Monthly payment with a financed funding fee you enter.
- House Affordability Calculator — Estimate the most expensive home your income supports.
- Down Payment Calculator — Down payment amount and loan size from a percentage.
- FHA Loan Calculator — Monthly payment with upfront and annual mortgage insurance premiums you enter.
- Refinance Calculator — Monthly savings and break-even time from refinancing.
- Closing Costs Estimate Calculator — Closing costs from a percentage of the price plus fees you list.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.