Variable vs Fixed Rate Calculator
Compare a fixed and a variable rate on the same mortgage to see the 5-year payment and interest difference.
Type exact values (cents included) or drag a slider to get close. To fine-tune, click the slider and press Left arrow keyRight arrow key on your keyboard: each press moves mortgage amounts by $100 and interest rates by 0.01%.
Type an exact value from $100,000 to $1,500,000. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of $100.
Type an exact value from 2.00% to 8.00%. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of 0.01%.
Type an exact value from 2.00% to 8.00%. Dragging the slider moves quickly. With the slider focused, press the left or right arrow key to move in steps of 0.01%.
Variable rates move with prime — this assumes today's rate holds. The right choice depends on your risk tolerance; let's talk it through.
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Get Exact Numbers — Free CallHow the Variable vs Fixed Rate Calculator Works
Fixed rates lock in certainty; variable rates move with prime and have historically cost less over time — but with more month-to-month uncertainty.
This calculator compares both on the same mortgage amount and amortization over a 5-year window, assuming today’s variable rate holds, so you can weigh the numbers alongside your own risk tolerance.
4 Steps to Your Results
The same for both scenarios, so the comparison is apples-to-apples.
This rate is locked for the full term, whatever happens to the market.
This rate can rise or fall with the Bank of Canada’s policy rate; the calculator assumes it holds steady for the comparison.
See both monthly payments and total interest over 5 years, and the dollar difference between them.
On a $500,000 mortgage over 25 years, a 4.49% fixed rate produces a payment of about $2,765/month, while a 4.05% variable produces about $2,644/month.
Over 5 years, that’s roughly $104,784 in interest on the fixed side versus $94,268 on the variable side — a difference of about $10,516, assuming the variable rate never moves.
That last assumption is the whole risk: if variable rates rise significantly during the term, some or all of that advantage can disappear.
Frequently Asked Questions
Historically, variable rates have cost less over time more often than not, but every cycle differs. This calculator shows the numbers if today’s rate holds; nobody can guarantee where rates go next.
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