Mortgage Calculator

Try our easy to use mortgage payment calculator that's complete with a mortgage amortization schedule for up to 30 years
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REW's Mortgage Calculator

Are you in the market for a new home or looking to refinance your existing mortgage? You've come to the right place! Our Canadian mortgage calculator is the perfect tool to help you figure out your monthly mortgage payment, the total cost of your mortgage, and your mortgage amortization schedule.

How to use a Mortgage Calculator

For those who are looking to become first-time homebuyers, being aware of your financial capabilities is very important. Mortgages are long-term financial commitments, and plotting your course ahead of time can be difficult at first. Thankfully, tools like our mortgage calculator are here to help you get ready for this important milestone.

This Canadian mortgage calculator is simple to use, offers detailed information based on the data you enter, and is constantly updated with the latest rates. Here's how to use it:

  • Enter the purchase price of a home you're considering
  • Input the downpayment amount or percentage you're planning to pay
  • Select your amortization period from the dropdown menu
  • Enter your mortgage interest rate (today's rates are always located just underneath the mortgage calculator for your reference)
  • Take a look at your estimated mortgage payments on a weekly, bi-weekly, semi-monthly, or monthly basis
  • Once you enter your information, you can also get a breakdown of how much of each payment will go towards interest versus the principle, allowing greater insight and financial planning.
  • From here, you can quickly and easily connect with one of our mortgage partners to determine your eligibility, ask questions about the process, and get preapproved for a mortgage.

Mortgages can be complex, but they don't have to be confusing. With resources like this, you can confidently approach the process and ensure you're financially prepared to purchase your dream home.

Calculate Your Mortgage Payments with Ease

Our simple mortgage payments calculator provides accurate results based on your input. Just enter a few bits of key information to get an estimate of your monthly payment — simple as that.

The REW mortgage calculator is here to make mortgages more straightforward, offering users several benefits. These include:

  • Big-picture perspective on your future mortgage payments, allowing you to make important financial decisions with confidence
  • Flexible calculations to help you with refinancing and weighing options
  • Quick access to hundreds of lenders to help you find a mortgage that works for you
  • Expert answers to all your mortgage questions, courtesy of a trusted advisor

At REW, we understand that buying a home or refinancing your mortgage can sometimes be a stressful or confusing process. That's why we've created this easy Canadian mortgage calculator to help you make informed decisions about your purchase. Our mortgage calculator is the perfect tool if you're a first-time homebuyer, looking to refinance your mortgage, or just curious about your options. Try it today and see how simple it can be to get a handle on your mortgage payments and costs.

Mortgage Calculator FAQs

How do I calculate mortgage payments?

Calculating mortgage payments involves determining the amount of money you need to pay each month to fully repay the mortgage loan over its term. To calculate mortgage payments, you will need to know the principal amount of the loan, the interest rate, and the term of the mortgage (usually measured in years).

The formula to calculate mortgage payments is:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

M = the monthly mortgage payment
P = the principal amount of the mortgage loan
i = the interest rate, divided by 12 months
n = the total number of monthly payments over the term of the mortgage loan

You can also use REW Money's mortgage calculators, that can simplify this process for you by asking for the necessary information and providing you with the estimated monthly mortgage payments.
How do I calculate mortgage interest?

To calculate mortgage interest, you will need to know the principal amount of the loan, the interest rate, and the term of the mortgage.

The formula to calculate mortgage interest is:

Interest = Principal x Interest Rate x Time

Principal = the amount of money you borrowed for your mortgage loan
Interest Rate = the rate at which interest is charged on your mortgage loan (usually expressed as an annual percentage)
Time = the length of time (usually measured in years) over which you will be making payments on the mortgage loan

To calculate the monthly mortgage interest, you can divide the annual interest rate by 12.

It's important to note that with some mortgages, the interest rate may vary over time based on changes in the market, and the interest may be compounded (meaning the interest is added to the principal balance, and interest is then charged on that total amount). In such cases, you may need to use a more complex formula or speak with a REW Money mortgage professional to determine your exact mortgage interest.

How do I calculate mortgage penalty?

To calculate a mortgage penalty, you need to determine if the penalty is calculated using the interest rate differential (IRD) or 3 months interest. Variable rate mortgages typically use 3 months interest, while for fixed-rate mortgages, the penalty will be the higher of the two.

To calculate the 3 months interest penalty, you would take your mortgage balance, multiply it by the interest rate, divide it by 12 to get the monthly interest, and then multiply it by 3.

For the IRD penalty, the formula used is usually (your existing mortgage rate – lender’s current rate that most closely matches your remaining term) x mortgage balance x remaining term.

How does a mortgage calculator work?
A mortgage calculator works by taking in key figures needed to calculate mortgage payments, such as mortgage balance, interest rate, amortization period, and payment frequency. Once these figures are entered into the calculator, the tool will use a formula to calculate the mortgage payment amount. The formula takes into account the principal amount borrowed, the interest rate being charged on the loan, and the length of time over which the loan will be repaid. Additionally, some mortgage calculators may also take into account other factors such as property taxes, insurance, and closing costs. The calculator will then provide an estimated monthly payment amount based on the inputted figures.
Are online mortgage calculators accurate?
Mortgage calculators can provide a good estimate of what your mortgage payments may be, but they may not take into account all the factors that could affect your mortgage costs, such as taxes, insurance, or changes in interest rates. Therefore, it's always recommended to speak with a mortgage professional to get a more accurate and personalized estimate for your situation.
How is fixed rate mortgage calculated?
A fixed-rate mortgage is a great option for those who want the peace of mind of a consistent monthly payment for the duration of their term. The calculation is straightforward: the interest rate is divided by 12 to get the monthly rate, which is then multiplied by the outstanding principal to determine the monthly payment. As you continue to make payments, more of your payment goes towards paying down the principal balance.
How do I calculate an adjustable rate mortgage?
A set margin is determined when you enter in to the mortgage, and it would be a calculation based off the prime rate which is usually set by the bank of Canada. An example of this would be if you were prime minus 1.00. You would look to see your lenders prime rate and it would be set 1% point below that and would move as the Bank of Canada rate changes or the prime rate fluctuates
How do I calculate the interest rate differential on a mortgage?
To calculate the Interest Rate Differential (IRD) on a mortgage, there are two methods. The first method is the Posted Rate, where the Bank of Canada would have a higher set rate for a 5-year term (let's use 5% for an easy figure). You would likely have received a discount on that rate when entering your term, so let's say the discount was 2% and your actual rate was 3%. To calculate the IRD, you would need to see what the lender is offering for the remainder of your term, let's say 3 years. If the lender's rate for the remaining 3 years is 3.5%, then you would take your discount amount (2%) and subtract it from the 3-year rate (3.5% - 2%), resulting in 1.5%. That number is then multiplied by the 3 years remaining, and you would need to pay out 4.5% of your mortgage balance in a penalty. The Posted Rate method is usually much less of a penalty because lenders don't use the Bank of Canada's rates but instead look at published rates, so the gap between rates becomes smaller, resulting in a smaller penalty.
How do I calculate the penalty for breaking a mortgage?
Calculating the penalty for breaking a mortgage depends on whether the penalty is based on three months' interest or an IRD (Interest Rate Differential) penalty. If it's an IRD penalty, you need to determine if it's based on posted or published rates. The calculation can be quite complex, but generally speaking, the penalty will be the greater of the two calculations. For a 3 months interest penalty, it's calculated by multiplying your current mortgage balance by your current interest rate and dividing that by 4 (since there are 4 quarters in a year). An IRD penalty is calculated by taking the difference between your current mortgage rate and the lender's current rate for the remaining term, multiplying it by your mortgage balance, and then multiplying that by the remaining term of your mortgage. It's always best to consult with a mortgage professional to get an accurate estimate of the penalty you would need to pay.
Is it worth breaking my mortgage?
Breaking your mortgage can be a good financial decision in certain situations, such as when you have an opportunity to save on interest costs or when consolidating higher interest debts like credit cards and personal loans. However, it's important to carefully consider the potential costs and benefits of breaking your mortgage, and to speak with a trusted REW mortgage partner to determine the best course of action for your specific situation.
How is the mortgage insurance calculated?
Mortgage insurance is calculated based on a percentage of the down payment and the overall mortgage size. The percentage varies depending on the down payment amount. For a 5% down payment, the mortgage insurance premium would be 3.8% of the mortgage amount. For a 10% down payment, the premium would be 2.79%, and for a 15% down payment, the premium would be 2.38%. If you are able to make a down payment of 20% or more, you do not need to pay mortgage insurance. The premium amount is added to your mortgage balance and paid off over the life of the mortgage.
How do mortgage amortization schedules work?
A mortgage amortization schedule shows how your mortgage payments are divided between paying off the principal and paying interest. The schedule typically covers the entire length of your mortgage and breaks down each payment into how much goes towards interest and how much goes towards principal. At the beginning of your mortgage term, most of your payment goes towards interest and only a small portion goes towards the principal. As you continue to make payments, the portion going towards the principal increases and the interest portion decreases. By the end of the amortization period, your mortgage will be fully paid off. It's important to review and understand your amortization schedule to see how much interest you'll be paying over the life of your mortgage, and to determine whether a shorter or longer amortization period is right for you.
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