Mortgage Payoff Calculator

See how much sooner you’d be mortgage-free, and how much interest you’d save, with accelerated payments, extra payments or lump sums.

✓ 2026 rates · verified Oct 22–28, 2026

Your rate is set only for your current term. This assumes the same rate until the mortgage is paid off. To see what you could borrow at today’s rates, try the mortgage affordability calculator.

Why accelerated payments work

Take a $400,000 mortgage at 4.5% fixed over 25 years. The monthly payment is $2,213.89 and you pay $264,168.00 in interest over 300 payments.

Plain bi-weekly, weekly and semi-monthly payments only split the same yearly amount into smaller pieces. They save a few hundred dollars, because each piece reaches the balance a little sooner. The accelerated versions are different: half the monthly payment 26 times a year is 13 monthly payments’ worth, one extra a year. That alone saves $40,064.57 and takes 3 years 3 months off the mortgage.

Lump sums or bigger payments?

On the same mortgage:

• $200.00 more every month ($2,400.00 a year) saves $41,746.22 and finishes in 21 years 6 months.
• A $5,000.00 lump sum every year saves $70,811.34 and finishes in 19 years.
• Raising the payment 10% to $2,435.28 saves $45,405.96, finishing in 21 years 3 months.
• $20,000.00 once, today saves $38,038.32, finishing in 22 years 10 months.

Money that reaches the balance earlier saves more, because it stops interest building on that part for longer. A lump sum today beats the same amount spread over years. But what matters most is the total you add: $5,000.00 a year is more than twice the $2,400.00 a year from an extra $200.00 a month, and it saves more. Bigger regular payments suit a steady budget; lump sums suit bonuses, tax refunds and other one-off money.

Prepayment privileges and penalties

Your mortgage contract sets how much you can prepay each year without a penalty: usually a lump-sum limit, often a share of the original amount, and a limit on raising your payment. The limits differ from lender to lender, so check your own contract. The Financial Consumer Agency of Canada is clear about what happens if you go over: “If you put more money toward your mortgage than the maximum amount allows, you will pay a prepayment penalty.” (Financial Consumer Agency of Canada – Paying off your mortgage faster).

Enter your limits under “My lender’s prepayment limits” and the calculator flags any year that goes over. It never estimates the penalty itself: the formulas vary by lender and contract, and some depend on rates at the time you prepay.

At renewal

Your rate is only fixed for the term, often five years, so most people renew several times before the mortgage is gone. If your new rate is lower, you can keep paying the same amount instead of letting the payment drop; the difference goes to principal and you finish sooner. Renewal is also when many lenders let you make a larger lump sum without a penalty.

How this is calculated

1. Canadian fixed-rate mortgages are quoted with interest compounded semi-annually; the Interest Act (s. 6) requires blended-payment mortgages to state their rate calculated yearly or half-yearly (Interest Act (R.S.C. 1985, c. I-15), s. 6). So the rate per payment is (1 + rate ÷ 2)^{2 ÷ payments a year} − 1. A variable rate compounded monthly uses (1 + rate ÷ 12)^{12 ÷ payments a year} − 1.
2. The regular payment = balance × rate per payment ÷ (1 − (1 + rate per payment)^{−number of payments}), rounded to the cent: the same formula as the affordability calculator.
3. Accelerated bi-weekly is the monthly payment ÷ 2, paid 26 times a year; accelerated weekly is the monthly payment ÷ 4, paid 52 times a year (FCAC – Choosing a mortgage that is right for you (payment frequency options)).
4. Each payment: the balance grows by one period’s interest, then the payment comes off. A lump sum today comes off before the first payment; yearly lump sums come off right after the payment that falls on their month.
5. If less than $5 would be left after a payment, it’s added to that payment, as lenders do with the last one.
6. Everything is calculated at full precision and rounded to the cent only for display.

What this calculator assumes

• The same interest rate until the mortgage is paid off, across every renewal.
• Payments are made on time, starting one period from now.
• Prepayments shorten the mortgage; the regular payment stays the same.
• No prepayment penalties, fees, or mortgage insurance changes.
• “Current plan” is monthly payments with nothing extra, at the balance and amortization you enter.

Rates for tax year 2026, verified October 22 to October 28, 2026 · Page updated October 28, 2026