A mortgage amortization schedule is a payment-by-payment table showing how much goes to interest, how much reduces principal, and what balance remains. Enter the amount borrowed, annual rate, amortization, and payment frequency to generate the schedule.
For a Canadian mortgage, the schedule is a projection rather than a promise that one rate lasts until the loan reaches zero. The mortgage term is usually shorter than the amortization, so a new rate and payment can create a new schedule at renewal.
Inputs that determine the amortization table
Start with mortgage principal, which is normally the purchase price minus the down payment plus any amount financed into the loan. Add the contract rate, amortization period, payment frequency, and the correct country convention. Do not use the original purchase price as principal after years of repayment.
The payment formula converts the annual rate into a periodic rate and spreads repayment across the number of scheduled payments. Canadian fixed-rate mortgage examples commonly use a nominal annual rate compounded semi-annually. Exact lender dates, rounding, fees, insurance, and contract terms may produce small differences.
How to read principal, interest, and balance
Interest for a period is based on the outstanding balance and periodic rate. The rest of the scheduled payment reduces principal. Because the balance is highest near the beginning, interest usually takes a larger share of early payments even though the fixed payment amount stays the same.
The yearly view is useful for comparing progress and estimating a renewal balance. The detailed table is better for checking a particular payment date or exporting a complete schedule. Treat the final decimals as estimates until compared with the lender's statement.
What changes the schedule
A new rate at renewal, a changed amortization, a different payment frequency, or an extra principal payment changes the path. A longer amortization normally reduces the required payment but increases the time in debt and total interest. A valid prepayment reduces the balance and can shorten payoff.
Create a fresh schedule whenever a material input changes. For renewal planning, use the balance expected on the maturity date, then compare the offered rate with higher-rate and alternative-amortization cases.
Check the calculator against the contract
A financial calculator or spreadsheet can reproduce the fixed-payment formula when the periodic rate and number of payments are entered correctly. The most common mistake is dividing a Canadian quoted rate by 12 without first accounting for its stated compounding convention.
Compare the first payment, a year-end balance, and the renewal-date balance with lender documents. Differences can come from funding dates, payment dates, rounding, rate changes, skipped payments, fees, insurance, or prepayments that the simple schedule does not know about.
Frequently asked questions
What does a mortgage amortization schedule show?
It shows each payment, the principal and interest portions, and the remaining balance. This calculator also provides yearly rollups.
Is amortization the same as the mortgage term?
No. Amortization is the estimated full repayment period. The term is the shorter contract period that ends at renewal or repayment.
Can I download an amortization table?
Yes. The amortization calculator can show every payment and export the detailed rows as CSV.
Sources and further reading
Mortgage rules and market data can change. Follow the links for current official information.