Planning to buy a home in Canada? Our Mortgage Calculator Canada helps you estimate your potential mortgage payments quickly and accurately. Understand your monthly, bi-weekly, or weekly costs, total interest, and amortization period based on typical Canadian interest rates. Make informed decisions about your home financing and budget effectively for your future Canadian home.
Formula:
Mortgage Payment Formula
The standard mortgage payment (M) is calculated using the following formula, adapted for periodic payments:
M = P [ i(1 + i)n ] / [ (1 + i)n – 1 ]
- M = Your periodic (e.g., monthly) mortgage payment
- P = The Principal Loan Amount (the total amount borrowed)
- i = The periodic interest rate (annual interest rate divided by the number of payment periods per year)
- n = The total number of payments (Amortization Period in years multiplied by the number of payment periods per year)
This formula helps determine the consistent payment required to repay the principal and interest over the loan's term.