Mortgage Payment Calculator

Thinking about applying for a mortgage and want to know what your mortgage payments will be? Download our free mortgage payment calculator and calculate your payments.

Click to download our free excel Mortgage Payment Calculator template.

You may have heard that repaying your mortgage bi-weekly or weekly results in significant interest savings. That’s only true if you shorten the period of repayment. The calculation that financial institutions like to use works like this:

  1. Determine what your payment would be if made monthly payments on the mortgage.
  2. Divide that amount by 2 for bi-weekly payments and 4 for weekly payments.
  3. Using the payment that you calculated in 2, reduce the years to repay in our calculator for either the bi-weekly or weekly columns until you approximate the payment you calculated.

The effect of these changes should be to reduce your repayment period by 3 or 4 years and reduce the amount of interest you pay by 15 – 20 %. The reason for this is that when you use the bank’s method of estimating your payment you actually make the equivalent of one month’s extra payment every year.

You can achieve the same result by increasing the amount you pay monthly by 8.3%.

For example, instead of making a mortgage payment of $1,000 per month (or $12,000 per year), you could pay $500 bi-weekly, or 26 payments for $13,000 per year. The key point to note here is that if you pay half the monthly payment bi-weekly, you are actually paying $1,000 more per year, so obviously you will pay the mortgage off sooner.

The most important consideration in determining the terms for your mortgage should be your monthly household budgeting plan. How much and how often can you afford to make a payment? Be conservative – don’t forget your property taxes, utilities, insurance and the other costs associated with home ownership.

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