Free tool · Cash & planning
Loan payment calculator
Calculate the regular payment, total interest and a yearly amortization summary for a fixed-rate loan. Choose how often you pay and whether interest compounds at the payment frequency or semi-annually.
An illustration of a loan balance falling over its term as payments are made, not your result.
Visual labels: Loan amount; Payments; Interest; Balance at zero.Your scenario
Amounts are displayed in CAD. Use the rate and compounding your lender quotes.
- Total interest
- $83,061.61
- Total of all payments
- $333,061.61
- Effective annual rate
- 6.17%
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $14,488.10 | $18,818.02 | $231,181.98 |
| 2 | $13,327.42 | $19,978.70 | $211,203.28 |
| 3 | $12,095.19 | $21,210.93 | $189,992.35 |
| 4 | $10,786.95 | $22,519.17 | $167,473.18 |
| 5 | $9,398.03 | $23,908.09 | $143,565.09 |
| 6 | $7,923.45 | $25,382.67 | $118,182.42 |
| 7 | $6,357.87 | $26,948.25 | $91,234.17 |
| 8 | $4,695.78 | $28,610.34 | $62,623.83 |
| 9 | $2,931.14 | $30,374.98 | $32,248.85 |
| 10 | $1,057.68 | $32,248.85 | $0.00 |
The last payment is adjusted to clear the balance. Fees, insurance and rate changes are not included.
Calculated on this device. These inputs are not submitted to Sora.
How the calculation works
Payment = loan amount × i ÷ (1 − (1 + i)^−n), where i is the interest rate per payment period and n is the number of payments. With compounding at the payment frequency, i is the annual rate divided by payments per year. With semi-annual compounding, i = (1 + annual rate ÷ 2)^(2 ÷ payments per year) − 1. At a zero rate the payment is the loan amount divided by n. Each year in the summary adds up the interest and principal paid and shows the balance left. Payments are rounded to the cent and the last payment is adjusted to clear the balance.
A worked example
At an illustrative $250,000 at 6% over 10 years with monthly payments and compounding at the payment frequency, the payment is $2,775.51 and total interest is $83,061.61. With semi-annual compounding at the same quoted rate, the payment is $2,766.27 and total interest is $81,953.18. The quoted rate is the same; the compounding changes the effective cost.
Assumptions and limits
Canadian mortgages are commonly quoted with semi-annual compounding, while many other loans, lines and leases compound at the payment frequency or monthly, so ask your lender how interest is calculated and use the matching option. The tool assumes a fixed rate, equal payments at the end of each period and no prepayments, skipped payments, fees, insurance or rate changes. It treats the term you enter as the whole amortization: a mortgage with a five-year term and a 25-year amortization needs a separate look at the balance at renewal. For a business loan, the interest is generally deductible as a business expense while the principal repayment is not, which is why the split by year matters in your books. Your lender’s schedule and disclosure statement govern the real figures.
General educational information. Inputs stay on this device and are not submitted. Confirm the assumptions before using a result in a business decision.
Source and further reading
Background references checked October 24, 2026; compounding and payment conventions vary by lender and product: Financial Consumer Agency of Canada: interest on mortgages; Financial Consumer Agency of Canada: mortgage terms and amortization. The examples above use Sora’s own illustrative figures.
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