Mortgage payment calculator (US & Canada)

How the payment is calculated

The payment uses the standard amortization formula: payment = P × i ÷ (1 − (1 + i)⁻ⁿ), where P is the loan, n the number of monthly payments and i the monthly interest rate.

US mortgages compound monthly, so i = annual rate ÷ 12. Canadian fixed-rate mortgages compound semi-annually: Canada's Interest Act (section 6) requires a blended-payment mortgage to state its rate "calculated yearly or half-yearly, not in advance", and lenders quote fixed rates half-yearly. The equivalent monthly rate is (1 + rate/2)^1/6 − 1, which gives a slightly lower payment than monthly compounding at the same quoted rate. Variable-rate mortgages can work differently, so check your mortgage documents.

Term vs amortization. In Canada the amortization (often 25 years) is how long the loan takes to pay off, while the term (often 5 years) is how long your rate is locked before renewal. The "balance owing" result shows what you'd still owe at renewal. Results ignore prepayments, fees and mortgage insurance premiums.

For your taxes, only the interest is a rental expense, not the principal: Schedule E line 12 in the US (IRS Pub. 527) or T776 line 8710 in Canada (CRA Guide T4036). Your lender's year-end statement shows the exact interest paid.

Estimates for planning only, based on what you enter. Not financial or tax advice. All calculations run in your browser and nothing is stored or sent.

Frequently asked questions

Why is my Canadian mortgage payment lower than a US calculator shows?

Canadian fixed-rate mortgages compound semi-annually, while most online calculators assume monthly compounding. At the same quoted rate, semi-annual compounding means a slightly lower effective rate and payment. Choose Semi-annual above to match a Canadian fixed-rate quote.

Is my mortgage payment tax-deductible on a rental property?

Only the interest part. Principal repayments aren't deductible in the US or Canada. Mortgage interest goes on Schedule E line 12 (US) or T776 line 8710 (Canada).

What is the difference between term and amortization?

Amortization is the total time to pay off the loan; the term is the period your rate and conditions are fixed. At the end of a Canadian term you renew, often at a different rate, for the remaining balance.