Mortgage overpayment calculator

Overpaying on either a residential or commercial mortgage offers significant benefits. It reduces total interest costs and shortens the repayment period. This leads to accelerated equity buildup and increased financial flexibility. Even modest, regular overpayments can yield substantial interest savings over time.

Page written by Ian Hawkins. Last reviewed on March 11, 2026. Next review due April 1, 2027.

This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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What is a mortgage payment?

A mortgage payment is the amount of money you pay to your lender each month to repay your home loan. It typically includes principal (the amount borrowed), interest (the cost of borrowing), property taxes, and sometimes homeowner’s insurance (often abbreviated as PITI).

What is a mortgage amortization period?

The mortgage amortization period is the total length of time it will take to repay your entire mortgage loan. In Canada, typical amortization periods range from 25 to 30 years. The longer the amortization period, the lower your monthly payments, but you’ll pay more interest over time.

What’s the difference between a fixed rate mortgage and a variable rate mortgage?

Fixed Rate Mortgage: Offers a set interest rate for the entire term of the mortgage (usually 1 to 10 years). This provides stability and predictable payments over time, regardless of changes in the market interest rates.
Variable Rate Mortgage: Has an interest rate that can fluctuate with changes in the lender’s prime rate. Payments can vary, which could mean paying more or less interest over time depending on market conditions.