Mortgage Prepayment Calculator
See how lump-sum or increased monthly payments reduce your mortgage payoff time and save interest. Uses Canadian semi-annual compounding.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
$
1%10%
5 yr30 yr
$
Interest Saved
$64,442.40
New Payoff Time
22 yr 0 mo
36 months saved
Monthly Payment
$2,441.57
Base payment (excl. extra)
Interest Without Prepayment
$332,469.78
300 months
Interest With Prepayment
$268,027.38
264 months
Frequently Asked Questions
What is a mortgage prepayment?
A prepayment is an extra payment on your mortgage beyond the regular scheduled amount. It goes directly toward reducing the principal, which saves interest over the life of the mortgage.
Are there penalties for prepaying?
Most Canadian mortgages allow annual prepayment privileges (typically 10-20% of the original balance). Exceeding these limits may trigger a prepayment penalty, especially on fixed-rate mortgages.
Why does Canadian compounding matter?
Canadian fixed-rate mortgages use semi-annual compounding by law, unlike the U.S. which uses monthly compounding. This results in a slightly lower effective rate for Canadians.
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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