This calculator uses the standard Canadian mortgage formula with semi-annual compounding. In Canada, most mortgage interest compounds semi-annually (twice per year), even though you make monthly payments.
The calculation first converts your annual interest rate to an effective annual rate using semi-annual compounding: Effective Rate = (1 + Annual Rate / 2)² - 1. Then it converts this to a periodic rate based on your payment frequency.
Your payment is calculated using the amortization formula that factors in the principal amount, periodic interest rate, and total number of payments over the amortization period.