Mortgage Payoff Calculator

How this is calculated

The current payment is the standard Canadian fixed-rate payment, where the annual rate compounds semi-annually: the effective monthly rate is i = (1 + annual rate ÷ 2)^1/6 − 1 and the payment is P = L × i ÷ (1 − (1 + i)⁻ⁿ) over the current amortization. The required payment is the same formula with n set to your target number of years times twelve. The difference between the two payments is the extra amount you would need to add each month.

Total interest is the payment times the number of months, minus the balance. Because the target schedule is shorter, it carries less interest even at the same rate, and the tool shows that saving. If your target is longer than your current amortization, the tool tells you no extra payment is needed, rather than showing a negative one.

A few practical notes:

• Paying off a mortgage faster usually requires using your prepayment privileges, and lenders often cap the extra amount as a percentage of the original balance each year.
• The calculation assumes the rate stays fixed and that every extra dollar goes to principal with no fee. On a variable-rate mortgage the required payment changes whenever the rate moves.
• A target that is very short can produce a large payment; make sure it still fits your budget alongside property tax, insurance, and maintenance.

All figures are estimates for planning only, not a quote, pre-approval, or approval. Confirm your prepayment limits and how extra payments are applied with your lender.