Extra Payment Payoff Calculator
See how a lump sum or a bit extra each month can shorten your amortization and cut the interest paid over the life of the loan.
Why extra payments move the needle
Every dollar paid above the required payment goes straight to principal, which reduces the interest charged for every month after. Most Canadian mortgages allow prepayment privileges (commonly 10-20% of the original principal per year) without penalty, though the exact limit is set by the lender and term. This calculator shows the directional payoff-time and interest savings; your specific prepayment allowance is confirmed on your mortgage documents.
Common questions
Is there a limit to how much extra I can pay?+
Most lenders cap penalty-free prepayments at 10-20% of the original principal per calendar year. Paying beyond that limit may trigger a prepayment charge, so it is worth checking your specific mortgage documents first.
Is a lump sum or higher monthly payments better?+
Both reduce principal faster, just on different schedules. A lump sum has more immediate impact; steady increases build the habit. Either works, the right one depends on cash flow.
Prepayments add up.
Not every lender allows the same prepayment room. That's worth shopping for.
