12 calculators

Adjustable-Rate (ARM) Calculators

Model ARMs, interest-only and option loans through their fixed period and every adjustment that follows.

About these calculators

An ARM trades a lower starting rate for uncertainty once the fixed period ends. These calculators project payments all the way through — the initial fixed years, the first reset, and the periodic and lifetime caps that bound how high the rate can climb.

Compare a 3/1, 5/1, 7/1 or 10/1 ARM against a fixed-rate loan, model interest-only and option-ARM payment shock, and see the worst-case payment before you sign. The point is to know the risk, not just the teaser rate.

Common questions

Adjustable-Rate (ARM) calculators — frequently asked

How does an ARM work?

An adjustable-rate mortgage is fixed for an intro period — five years on a 5/1, seven on a 7/1 — then adjusts periodically to an index plus a fixed margin, within caps.

You get a lower starting rate in exchange for uncertainty after the fixed period ends.

What do the numbers in a 5/1 ARM mean?

The first number is how many years the rate stays fixed; the second is how often it adjusts afterward. A 5/1 ARM is fixed for five years then adjusts once a year; a 7/1 holds its rate for seven years, then annually.

Is an ARM a good idea?

It can be if you plan to sell or refinance before the fixed period ends — you get the lower rate and leave before the risk.

If you will hold the loan long-term, a fixed rate removes the chance of a rising payment down the road.

What are ARM caps?

Caps limit how far the rate can move — an initial cap at the first reset, a periodic cap per adjustment, and a lifetime cap over the loan. Together they set your worst-case payment, which these calculators project before you sign.