1. What is a Mortgage Payoff Calculator RBC?

Definition: This calculator determines how many payments are needed to pay off an RBC mortgage based on your monthly payment amount, principal, and interest rate.

Purpose: It helps homeowners understand their mortgage timeline and plan for early payoff strategies.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( n \) — Number of payments (unitless)
• \( M \) — Monthly payment amount (CAD)
• \( P \) — Principal loan amount (CAD)
• \( r \) — Monthly interest rate (decimal)

Explanation: The formula calculates how many periods are required to pay off a loan given fixed monthly payments and a constant interest rate.

3. Importance of Mortgage Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning, assessing the impact of extra payments, and comparing mortgage options.

4. Using the Calculator

Tips: Enter your RBC mortgage details: monthly payment, principal amount, and monthly interest rate (annual rate ÷ 12). Default monthly rate is 0.004 (4.8% annual).

5. Frequently Asked Questions (FAQ)

Q1: How do I convert annual rate to monthly?
A: Divide your annual interest rate by 12 (e.g., 4.8% annual = 0.004 monthly).

Q2: Does this include taxes and insurance?
A: No, use only the principal and interest portion of your payment.

Q3: What if I make extra payments?
A: The calculator shows the timeline for your current payment amount. Extra payments would shorten the term.

Q4: Why does my RBC mortgage statement show different numbers?
A: This is a simplified calculation. Actual mortgages may have slight variations due to payment timing.

Q5: How accurate is this calculator?
A: It provides a close estimate but consult your RBC mortgage specialist for exact figures.