ARM vs Fixed-Rate Mortgage Calculator
Compare an adjustable-rate mortgage (e.g. 5/1 or 7/1 ARM) with a fixed-rate loan — payments before and after the reset and total cost over the years you'll keep it.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the loan, the fixed rate and the ARM's starting rate and fixed period.
- 2Enter the rate you expect after adjustment and how many years you plan to keep the loan.
How it's calculated
The ARM payment is recalculated at the reset on the remaining balance over the remaining term. Costs are compared over your chosen holding period.
Frequently asked questions
When does an ARM make sense?
When you're fairly sure you'll sell or refinance before the rate adjusts, so you only enjoy the lower starting rate.
How high can an ARM rate go?
Caps limit it — often 2% at the first adjustment (5% for some), 1–2% per adjustment after, and 5% over the life of the loan.
What do 5/1 and 5/6 mean?
The first number is the fixed years; the second is how often it adjusts afterwards — every 1 year or every 6 months.