Free Mortgage Calculator Ontario

This free mortgage calculator helps Ontario homebuyers estimate monthly payments, total interest costs, and amortization schedules. Simply enter your loan details to get an instant calculation.

How to Use This Calculator

Using our mortgage calculator is simple:

Enter the purchase price of the home
Input your down payment amount
Select your amortization period (typically 25 or 30 years)
Enter your interest rate (current Ontario rates apply)
Click "Calculate" to see your results

The calculator will display your monthly payment, total interest paid over the loan term, and an amortization schedule chart.

Mortgage Formula

The calculator uses the standard mortgage payment formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ] Where: M = Monthly payment P = Principal loan amount (Purchase price - Down payment) i = Monthly interest rate (Annual rate ÷ 12 ÷ 100) n = Number of payments (Amortization period × 12)

This formula calculates the fixed monthly payment required to fully amortize the loan over the selected term.

Worked Example

Let's calculate a mortgage for a $400,000 home with a $80,000 down payment, 25-year amortization, and 5% interest rate:

Principal (P): $400,000 - $80,000 = $320,000

Monthly interest rate (i): 5% ÷ 12 = 0.4167%

Number of payments (n): 25 × 12 = 300

Monthly payment (M): $320,000 [ 0.004167(1.004167)^300 ] / [ (1.004167)^300 - 1 ] ≈ $1,895.42

This example shows a monthly payment of approximately $1,895.42 for a 25-year term.

Interpreting Results

Your mortgage calculation results include:

Monthly payment: The fixed amount you'll pay each month
Total interest: The total amount paid in interest over the loan term
Amortization schedule: A breakdown showing how much principal and interest is paid each month

Use these results to compare different loan options, understand your financial commitment, and plan your budget accordingly.

Frequently Asked Questions

What is the difference between fixed and variable rate mortgages?

Fixed-rate mortgages have a constant interest rate throughout the loan term, while variable-rate mortgages adjust with market rates. Fixed rates provide predictability, while variable rates may offer lower initial rates but come with interest rate risk.

How does the amortization period affect my payments?

A longer amortization period (like 30 years) results in lower monthly payments but more total interest paid. A shorter term (like 25 years) means higher payments but less total interest over the life of the loan.

What is the difference between principal and interest payments?

Principal payments reduce the outstanding loan balance, while interest payments cover the cost of borrowing. Early in the loan term, most payments go toward interest. Over time, principal payments increase as the loan balance decreases.