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Mortgage payoff calculator: prepayments and extra payments
What extra payments, lump sums and an accelerated schedule take off your amortization, and the interest they save, on the Canadian compounding convention.
What do extra payments do to a mortgage payoff date?
On a $400,000 mortgage with 25 years left, an extra $200 on every monthly payment pays it off in 21 years and 6 months: 3 years and 6 months sooner, with $41,116 less interest if the rate never changed. That is at 4.45%, the chartered-bank prime rate, Bank of Canada, 2026-09-30; the balance and the $200 are illustrations. Enter your own below.
Calculate your mortgage payoff date
Enter what you owe, your rate and the years left, then any mix of prepayments. It works as a mortgage prepayment calculator and as a mortgage calculator with extra payments: every option can be combined with the others. The arithmetic is the same anywhere in Canada.
What each prepayment does to the same mortgage
One mortgage, five ways to pay it down, each on its own and then together. On its current schedule the $400,000 example takes 25 years, costs $260,835 of interest from here and has $350,894 owing after 5 years.
| Prepayment | Interest saved | Paid off in | Sooner by | Balance after 5 years |
|---|---|---|---|---|
| Switch to accelerated bi-weekly | $39,285 | 21 years 9 months | 3 years 3 months | $338,439 |
| $200 extra on every monthly payment | $41,116 | 21 years 6 months | 3 years 6 months | $337,496 |
| Payment raised by 10% | $44,538 | 21 years 3 months | 3 years 9 months | $336,137 |
| $5,000 lump sum every year | $69,779 | 19 years | 6 years | $323,541 |
| $20,000 lump sum once, in 1 year | $35,020 | 23 years | 2 years | $327,044 |
| All five together | $151,573 | 11 years 10 months | 13 years 2 months | $242,176 |
The accelerated switch adds $2,203 a year, the 10% increase $2,644 and the extra $200 a month $2,400: similar money, similar result. The $5,000 yearly lump sum saves $69,779. All five together clear the mortgage in 11 years and 10 months.
Lump sum mortgage payments: sooner beats later
Used as a lump sum mortgage payment calculator, the one thing to try is the date. The same $20,000 on the same $400,000 mortgage, paid at five different times:
| Paid | Interest saved | Paid off sooner by |
|---|---|---|
| In 1 year | $35,020 | 2 years |
| In 5 years | $26,472 | 1 year 9 months |
| In 10 years | $17,573 | 1 year 5 months |
| In 15 years | $10,335 | 1 year 1 month |
| In 20 years | $4,463 | 11 months |
A dollar of principal removed early stops being charged interest for every year that is left. Paid in 1 year, the $20,000 saves $35,020; paid in 20 years, it saves $4,463.
Go deeper
The detail, if you want it
Accelerated mortgage payments: what the extra is
An accelerated payment is not a faster ordinary payment. Plain bi-weekly takes the monthly payment, multiplies by 12 and divides by 26: you pay the same amount in a year, in smaller pieces. Accelerated bi-weekly takes half the monthly payment and collects it 26 times: 13 monthly payments a year, not 12. The extra is one monthly payment a year, and all of it goes to principal.
| Frequency | Payment | Paid in a year | Paid off in | Interest |
|---|---|---|---|---|
| Monthly | $2,202.79 | $26,433 | 25 years | $260,835 |
| Semi-monthly | $1,101.39 | $26,433 | 25 years | $259,735 |
| Bi-weekly | $1,016.67 | $26,433 | 25 years | $259,649 |
| Accelerated bi-weekly | $1,101.39 | $28,636 | 21 years 9 months | $221,550 |
| Weekly | $508.34 | $26,434 | 24 years 11 months | $259,135 |
| Accelerated weekly | $550.70 | $28,636 | 21 years 8 months | $221,106 |
The calculator above works as an accelerated mortgage payment calculator: choose the switch and the extra it adds each year is shown under the field. Paying one monthly payment, $2,202.79, as a lump sum at the end of each year instead ends the mortgage 3 years and 1 month sooner and saves $36,645; spread through the year as accelerated bi-weekly payments it is 3 years and 3 months and $39,285. Accelerated bi-weekly payments, defined →
Prepayment privileges and prepayment penalties
A closed mortgage lets you prepay a set amount each year without a charge. That allowance is the prepayment privilege, and it usually comes in two parts: a yearly lump sum, and a limit on how far you can raise the regular payment. Published allowances run from 10% to 20% of the original amount a year: TD 15%, BMO 20% (10% on its restricted product), National Bank 10%, First National 15% in Nova Scotia, CMLS and RMG 20%.
Yours are in your contract. Under the federal code of conduct, a federally regulated lender must set out prepayment privileges and charges in a single prominently displayed information box in the mortgage agreement, describe the elements used to calculate a charge, and — on the annual statement — explain the calculation with examples.
Go past the privilege, or pay the mortgage out before the term ends, and the lender can apply a prepayment charge. On a variable rate that is usually an amount equal to three months’ interest on what you still owe. On a closed fixed rate it is usually the greater of that and the interest rate differential: the lender works out the interest left to pay on the remaining term at your rate, works it out again at a comparison rate, and charges the difference.
In FCAC’s own example, $200,000 owing at 6% with 36 months left, three months’ interest is $3,000 and the differential is $12,000. The mortgage penalty calculator estimates the charge on your own numbers.
An open mortgage can be repaid at any time without a prepayment penalty, according to FCAC, at the cost of a higher rate. Scotiabank charges a $200 administration fee if an open mortgage is paid out in its first year. What breaking your mortgage costs → · Prepayment privileges, defined →
Prepay the mortgage or invest the money
A prepayment has a return you can state in advance: the interest it stops you paying, at your mortgage rate, for as long as the mortgage would have run. On the example above that is $41,116 from $200 a month. Money invested instead earns a return nobody can state in advance, tax can apply to it, and it can fall in a year when you need it. Money prepaid is also harder to get back out of the house.
Which leaves you ahead depends on the return you would actually earn, your tax position and how you would sit through a bad year. This calculator shows the mortgage side only, and it is not advice either way. The Smith Manoeuvre calculator models the other side: borrowing against the home to invest, against simply paying the mortgage down. At renewal, the mortgage renewal calculator shows what a different rate does to the same balance.
Why a broker
Licensed, independent, paid by the lender
- Licensed in Nova Scotia Associate broker 3001134, verifiable on the provincial register
- $0 broker fee On a standard residential mortgage the lender pays, not you
- Banks, credit unions, monolines One application, one credit check, placed with the lender that reads your file best
- Every part of the province Bedford office, remote process: Yarmouth to Sydney, the same four steps
Questions people ask
How much does an extra $200 a month take off a mortgage?
On $400,000 with 25 years left at 4.45% (chartered-bank prime rate, Bank of Canada, 2026-09-30), an extra $200 on every monthly payment clears the mortgage in 21 years and 6 months instead of 25 years. Interest from here falls from $260,835 to $219,719, a saving of $41,116, if the rate never changed. This extra mortgage payment calculator runs the same sum on your balance.
Is accelerated bi-weekly the same as paying every two weeks?
No. Plain bi-weekly is the monthly payment times 12, divided by 26: $1,016.67 on the $400,000 example, and it still takes 25 years. Accelerated bi-weekly is half the monthly payment, $1,101.39, paid 26 times. That is 13 monthly payments a year instead of 12, and it clears the same mortgage in 21 years and 9 months.
What does a lump sum mortgage payment save?
It depends on when you pay it. On the $400,000 example, $20,000 paid in 1 year saves $35,020 of interest and ends the mortgage 2 years sooner. The same $20,000 paid in 20 years saves $4,463. An early lump sum removes principal that would otherwise be charged interest for the rest of the amortization.
How much can I prepay without a penalty?
Whatever your contract’s prepayment privileges allow. Published allowances run from 10% to 20% of the original amount a year: TD 15%, BMO 20% (10% on its restricted product), National Bank 10%, First National 15% in Nova Scotia, CMLS and RMG 20%. A payment increase has its own limit. The figures are in the information box of your mortgage agreement. Go above them and the lender can charge a prepayment penalty.
Does a prepayment lower my regular payment?
Not during the term. The regular payment stays where it is, so more of each one goes to principal and the mortgage ends sooner; that is what this calculator shows. At renewal the payment is recalculated on the lower balance, over the amortization you and the lender settle on then.
Should I prepay my mortgage or invest the money?
A prepayment saves interest at your mortgage rate: a known figure, $41,116 on the example above. An investment’s return is not known in advance and tax can apply to it. This page works out the mortgage side only and does not tell you which to choose. The Smith Manoeuvre calculator models borrowing to invest against paying down, year by year.
Still unsure? Ask me directly.
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Prepayment limits differ by lender and product.
Send your lender, your renewal date and what you would like to prepay; you get back what that product allows and what your options are at renewal, within a business day.
(902) 298-0218 · Monday to Friday, 8:00 am to 10:00 pm Atlantic