ARM vs. Fixed Rate Mortgage Calculator

The ARM vs. fixed rate mortgage calculator will compare the monthly mortgage payments for each type of loan. This calculator compares fixed rate mortgage payments to both fully amortizing adjustable rate mortgages and interest only adjustable rate mortgages.

Looking for more personalized rates? Compare rate quotes from lenders and brokers, then return to our ARM vs. Fixed Rate Mortgage Calculator.

Compare Payments on Fixed and Adjustable Rate Loans
Here's a tool that will help you to compare the total monthly payment on fixed rate and adjustable rate (fully amortizing and interest-only) loans for a specific time period. You can also figure out the total interest and maximum monthly payment payable on an FRM and ARM.
Loan Information
Mortgage Amount ($)
Loan Period		30 years25 years20 years15 years12 years10 years5 years
Expected Rate Adjustment (%)
Fixed Rate Mortgage
Mortgage Rate (% per annum)
Fully Amortized Adjustable Rate Mortgage
Initial Mortgage Rate (% per annum)
Months before First Rate Adjustment
Interest Rate Cap (%)
Interest-Only Adjustable Rate Mortgage
Initial Mortgage Rate (%)
Months Before First Rate Adjustment
Interest Rate Cap (%)
Compare Payments
	Fixed	ARM	Interest-Only ARM
Inital Monthly Payment
Maximum Monthly Payment
Total Payments
Total interest
Note: Monhtly Payment includes monthly principal and monthly interest only.

More Information

There are two main types of mortgages, which are adjustable rate mortgages (ARMs) and fixed rate mortgages. Adjustable rate mortgages can provide attractive interest rates, but your payment is not fixed for the entire term of the mortgage. Typically, an adjustable rate mortgage has an interest rate that is lower than a fixed rate mortgage. Depending on how often the interest rate adjusts and what interest rates are expected to do (go up or go down), ARMs can cost a borrower a lot less in the long-run.

Since ARMs typically have lower interest rates, it is important to consider how long you will be in the home or how long you will have the mortgage. You also need to consider your ability to deal with possible adjustments in your monthly mortgage payment.

Fixed rate mortgages have a fixed interest rate for the entire term of the mortgage loan. This also means that the monthly mortgage payments are fixed for the entire term of the loan.