Amortization schedule
Year-by-year breakdown of principal, interest, and remaining balance. See exactly where each payment goes.
Your scenario
Result
Year 1 interest is by far the largest year — that's how amortization curves work. Year 25 is mostly principal.
How amortization actually works
An amortization schedule splits each payment into two parts: interest (calculated on the current balance) and principal (the rest). Early in the mortgage, almost every dollar goes to interest. By the final years, almost every dollar goes to principal. The curve is steep — year 1 interest on $720,000 at 4.84% is about $34,500; year 25 interest is about $1,800.
The Canadian semi-annual compounding convention
Canadian mortgages compound interest semi-annually (the Bank Act convention), unlike US mortgages which compound monthly. This calculator converts your nominal annual rate to an equivalent per-period rate before applying the standard amortization formula — math consistent with how Canadian lenders calculate.
How to use this
- Plan extra payments — see which years have the biggest interest spike so you can target prepayments where they save the most
- Compare amortization lengths — try 25 vs 30 years to see exactly how much extra you pay
- Estimate equity build — year 5 balance tells you what equity you'll have at first renewal