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ARM vs. Fixed Calculator

See how an adjustable-rate mortgage compares to a fixed rate over 30 years — payment by payment, year by year.

Loan Details

Loan Amount

Fixed Rate (%)

ARM Initial Rate (%)

ARM Initial Period (years)

ARM Adjustment Cap (%/yr)

ARM Lifetime Cap (%)

Payment Summary

ARM Initial Payment

$2,334/mo

Fixed Payment

$2,661/mo

ARM Total Interest

$791,673

Fixed Total Interest

$558,036

Year-by-Year Comparison

Year	ARM Rate	ARM Payment	Fixed Payment	Difference
1	5.75%	$2,334	$2,661	-$327
2	5.75%	$2,334	$2,661	-$327
3	5.75%	$2,334	$2,661	-$327
4	5.75%	$2,334	$2,661	-$327
5	5.75%	$2,334	$2,661	-$327
6	7.75%	$2,803	$2,661	+$142
7	9.75%	$3,294	$2,661	+$633
8	10.75%	$3,545	$2,661	+$884
9	10.75%	$3,545	$2,661	+$884
10	10.75%	$3,545	$2,661	+$884
11	10.75%	$3,545	$2,661	+$884
12	10.75%	$3,545	$2,661	+$884
13	10.75%	$3,545	$2,661	+$884
14	10.75%	$3,545	$2,661	+$884
15	10.75%	$3,545	$2,661	+$884
16	10.75%	$3,545	$2,661	+$884
17	10.75%	$3,545	$2,661	+$884
18	10.75%	$3,545	$2,661	+$884
19	10.75%	$3,545	$2,661	+$884
20	10.75%	$3,545	$2,661	+$884
21	10.75%	$3,545	$2,661	+$884
22	10.75%	$3,545	$2,661	+$884
23	10.75%	$3,545	$2,661	+$884
24	10.75%	$3,545	$2,661	+$884
25	10.75%	$3,545	$2,661	+$884
26	10.75%	$3,545	$2,661	+$884
27	10.75%	$3,545	$2,661	+$884
28	10.75%	$3,545	$2,661	+$884
29	10.75%	$3,545	$2,661	+$884
30	10.75%	$3,545	$2,661	+$884

Gold line marks first adjustment year. ARM assumes maximum adjustment cap each year after initial period.

Not Sure Which to Choose?

A local mortgage professional can help you weigh the risk/reward of an ARM vs. fixed.

ARM vs. Fixed Facts

When ARMs make sense

If you plan to sell or refinance before the initial period ends, an ARM's lower rate can save thousands.

The risk of ARMs

After the initial period, your rate adjusts annually. Worst-case: your rate climbs to initial rate + lifetime cap.

5/1, 7/1, 10/1 explained

The first number is the fixed period (years); the second is how often it adjusts after that (every 1 year).