Adjustable Rate Mortgage Calculator

About this calculator

An adjustable-rate mortgage starts with a fixed interest rate for an initial period and then shifts to a rate that can move up or down periodically based on a reference index, unlike a fixed-rate loan where the rate never changes. This calculator models what the monthly payment looks like during the initial fixed period and projects how it could change once adjustments begin, based on assumptions the user sets for how the rate might move.

Homebuyers use it to weigh an ARM against a fixed-rate mortgage, particularly when the ARM's initial rate is lower and they want to understand the payment risk if rates rise after the fixed period ends. It's especially relevant for buyers who expect to sell or refinance before the adjustable period begins.