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ARM vs Fixed-Rate Calculator

Compare adjustable-rate and fixed-rate mortgages to find the best option. Currently calculating in US Dollar.

Fixed-rate saves you $116,248 over the loan term

Fixed-rate provides payment stability and long-term savings

Based on projected rate increases
Loan Details
(20.0%)

Loan Amount

$320,000

Fixed Rate
6.75%
Adjustable Rate (ARM)
5/1 ARM Configuration
5.5%
5 years
0.5%

Projected rate increase per year after fixed period

Max rate: 10.50%

Fixed Rate

Monthly Payment

$2,076

Same for entire 30 years

Predictable payments

Total Interest

$427,185

5/1 ARM

Initial Payment

$1,817

Saves $259/mo initially

Max payment: $2,663

Total Interest (projected)

$543,433

Monthly Payment Over Time
Compare how payments change throughout the loan
Interest Rate Progression
ARM rate changes after the 5-year fixed period
Fixed: 6.75%
ARM Rate
Year-by-Year Comparison
Detailed payment and interest comparison
YearFixed PmtARM PmtARM RateDifference
1$2,076$1,8175.50%+$259
2$2,076$1,8175.50%+$259
3$2,076$1,8175.50%+$259
4$2,076$1,8175.50%+$259
5(end of fixed)$2,076$1,8175.50%+$259
6$2,076$1,9066.00%+$170
7$2,076$1,9956.50%+$81
8$2,076$2,0837.00%-$7
9$2,076$2,1707.50%-$94
10$2,076$2,2568.00%-$180
11$2,076$2,3418.50%-$265
12$2,076$2,4249.00%-$348
13$2,076$2,5069.50%-$430
14$2,076$2,58510.00%-$509
15$2,076$2,66310.50%-$587
16$2,076$2,66310.50%-$587
17$2,076$2,66310.50%-$587
18$2,076$2,66310.50%-$587
19$2,076$2,66310.50%-$587
20$2,076$2,66310.50%-$587
21$2,076$2,66310.50%-$587
22$2,076$2,66310.50%-$587
23$2,076$2,66310.50%-$587
24$2,076$2,66310.50%-$587
25$2,076$2,66310.50%-$587
26$2,076$2,66310.50%-$587
27$2,076$2,66310.50%-$587
28$2,076$2,66310.50%-$587
29$2,076$2,66310.50%-$587
30$2,076$2,66310.50%-$587
Understanding ARM vs Fixed

Fixed-Rate Mortgage

  • Payment stays the same for entire loan term
  • Protected from interest rate increases
  • Easier to budget long-term

Adjustable-Rate Mortgage

  • Lower initial rate and payments
  • Good if you plan to sell/refinance within 5 years
  • Payments can increase significantly after fixed period