Extra payments go directly against your principal, slashing the interest you pay and cutting years off your amortization. This calculator shows the exact difference between your original payoff date and your new one — so you can see whether that extra $500/month is worth it.
See how extra payments slash your amortization
Enter your current mortgage balance (find this on your most recent statement), your current interest rate, and your remaining amortization. Then enter how much extra you plan to pay each month in the Extra Monthly Payment field, and/or a one-time Annual Lump Sum you'll contribute each year (such as a tax refund or bonus).
You can use one or both fields — the calculator combines them to show total savings.
Interest Saved is the total reduction in interest you'll pay over the life of the mortgage. This is real money that stays in your pocket instead of going to your lender. The Original Payoff and New Payoff Date show exactly how many years and months you've shaved off your amortization.
The bar chart visualizes the difference between your original timeline and your accelerated payoff — a powerful visual reminder of how small regular increases compound over time.
One important note: most Canadian mortgages have a prepayment privilege — typically 10–20% of the original mortgage balance per year. If your extra payments exceed this limit, your lender may charge a penalty. Check your mortgage documents or call your lender to confirm your limit before making large lump sum payments. Accelerated bi-weekly payments (paying half your monthly amount every two weeks) are usually within your prepayment privilege and result in one extra payment per year — an easy, automatic way to save thousands.
Most Canadian mortgages allow you to increase your payment by 10–20% and make an annual lump sum prepayment of 10–20% of the original mortgage balance without penalty. Check your mortgage documents for your specific limits.
Both work well. Monthly extra payments reduce principal faster throughout the year. Annual lump sums are good if you have irregular income like bonuses. The total interest saved is similar either way — consistency matters more than timing.
Yes, but you'll pay a penalty — usually 3 months' interest or the IRD (interest rate differential), whichever is higher. Use the Penalty Calculator to estimate the cost first.
In Canada, extra payments typically reduce your amortization rather than lowering your regular payment. Your monthly payment stays the same but you pay it off sooner.
Explore current rates from 16+ Canadian lenders, or read our guides to understand your options.