FinoGet startedMortgage Prepayment Calculator
3 minSee how extra payments can save interest and shorten your mortgage timeline.
$45,350
Paying $250 extra each month plus a $10,000 lump sum clears the balance in 16 years 8 months instead of 20 years.
Your payment goes from $2,574 to $2,824.
Every extra dollar goes straight against principal.
Balance over time
Interest paid
Payments
Timeline
Keep going
$45,350 saved — for as long as you keep the extra payment up.
Prepayment plans lapse quietly, because nothing breaks when you stop. Fino tracks the $2,824 you meant to pay against what actually went out.
- Mortgage balance tracked against the accelerated schedule
- See whether $2,824 is still leaving each period
- The room for it measured against your real spending, not a 40 months promise
Free forever, no card required
Estimates are based on the information and assumptions you provide and are for educational purposes only. This is not financial, tax, legal or lending advice.
What this means
- A lump sum payment reduces the balance immediately, which cuts the interest that accrues each month.
- Even a modest extra monthly payment can meaningfully reduce the remaining term over a mortgage schedule.
Assumptions & methodology
- Interest rate stays constant.
- No additional fees or prepayment penalties are charged.
- Payments are made every month and on schedule.
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Open Fino to connect your accounts and see how this decision fits your cash flow, goals and budget.
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- Keep goals and budgets in one place
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Common questions
What people ask most about the Mortgage Prepayment Calculator.
How much can I prepay without a penalty?
Most Canadian closed mortgages include annual prepayment privileges — commonly a lump sum of 10% to 20% of the original principal, plus the right to increase your regular payment by a similar percentage. Exceeding those privileges triggers a penalty, and the exact allowances vary by lender and are set out in your mortgage commitment.
Is a lump sum or a payment increase better?
A lump sum applied directly to principal saves the most interest per dollar because it removes that principal immediately. A payment increase usually saves more in total because it repeats every period. Doing both is strictly better than either, and timing a lump sum early in the amortization matters far more than timing it within the year.
Should I prepay my mortgage or invest the money?
Prepaying earns a guaranteed, tax-free return equal to your mortgage rate. Investing carries an expected return that is usually higher but is neither guaranteed nor tax-free. The comparison is genuinely close at typical rates, and the honest tiebreakers are your tax situation, how near you are to renewal, and how much you value the certainty.
Does prepaying reduce my payment or my amortization?
By default a lump sum shortens the amortization while your regular payment stays the same, which is what produces the interest saving. Some lenders will instead recalculate the payment downward on request, but that gives up most of the benefit — you are simply borrowing the same money over the same period.