Mortgage calculator

What is a mortgage calculator?

Use the mortgage payment calculator to run different scenarios and find out how much your mortgage payment will be. Customize variables such as the down payment amount, mortgage rate, payment frequency, amortization, and choose between fixed or variable rate, to see the effects on your mortgage payment in Canada.

Before buying a property, it’s important to understand your carrying costs to ensure you can afford to commit to the purchase. This mortgage calculator will help you visualize your mortgage balance over time and offer insights on how to minimize the amount of interest you pay by making prepayments on your mortgage principal.

Disclaimer: Perch does not guarantee the accuracy of these results and should not be treated as a recommendation. Consult a professional prior to making any decisions as it relates to your current or future real estate transactions. Please refer to our Terms of Use for more information.

How do I use the mortgage payment calculator?

To make this calculator simple to use, we’ve filled in some of the fields already. You can modify each field with your own information to calculate your mortgage payment. Try changing different fields to see how it increases or decreases your payment amount.

Property value: Add your current property value, your purchase price, or the estimated purchase price of a listing you’re considering making an offer on.

Down payment: This is the amount of savings you currently have that can go towards your purchase. If you are using this calculator on a property you already own, you can put the amount of money you have already paid down in this field.

Mortgage rate: By default, we’ve already included today’s 5-year fixed mortgage rate from Perch in this field. If you have another mortgage offer you would like to use, you can adjust the mortgage rate and mortgage type.

2nd mortgage: A second mortgage is a second loan that you take on your home. If you’re not sure what this is, you can ignore this field.

Mortgage rate type: Mortgages are either fixed or variable. You can read more about the differences between fixed mortgages and variable mortgages here.

Payment frequency: The most common payment frequency is monthly, however you can change the frequency based on your preference for managing your household budget.

Amortization: This is the number of years it will take for you to fully pay off your mortgage if you make your regular mortgage payments without prepaying.

Is it free to use this mortgage calculator?

Yes. Our mortgage calculator is completely free to use, along with all of our other calculators, rate comparison charts and articles.

Why did we build this mortgage calculator?

The mortgage calculator is an important tool to help you with understanding exactly what you can afford. Buying a home can be a daunting and financially intimidating task, so we have built this simple tool so you can see exactly how it will impact your monthly, semi-monthly, bi-weekly or weekly household budget. As you go through the house-hunting process, you can bookmark this page to quickly calculate the mortgage payment on any potential house purchase. Even if you’re not currently looking at properties, you can use this calculator for any property value amount just to see what the mortgage payment is like. An online mortgage affordability calculator can help reduce unwelcome surprises to your budget later.

How does this mortgage calculator work?

You can use the mortgage payment calculator to run different scenarios and find out how much your mortgage payment will be. You also have the option to customize variables such as the down payment amount, mortgage rate, payment frequency, amortization, and choose between fixed or variable rate, to see the effects on your mortgage payment in Canada. You will be provided insights on how to minimize the amount of interest you pay by making prepayments on your mortgage principal.

How do I calculate my mortgage payment?

The mortgage payment formula includes these key numbers:

Total mortgage amount: This is the amount you are borrowing from the lender when you originally start your home loan, also known as the principal. It’s the price you paid (or plan to pay) on a property, less your down payment plus any applicable mortgage loan (or CMHC) insurance premiums.

Amortization period: The amortization period is the total length of time it takes you to pay off the entire loan. A typical mortgage in Canada has a 25-year amortization period. You can save money and reduce the amount of interest you pay on a mortgage by making prepayments to pay off your loan faster.

Mortgage rate: The mortgage rate is the rate of interest charged on a mortgage for a particular term (usually 5 years), and is set by the lender. A mortgage rate can be fixed, meaning it stays the same throughout the term, or variable, which means it can fluctuate with a benchmark interest rate.