ARM Calculator
Calculate arm from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate arm from your own entered figures. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
How to use the ARM Calculator
- Enter or select loan amount.
- Enter or select term (months).
- Enter or select fixed-rate period (years).
- Enter or select initial rate (%).
- Enter or select assumed rate adjustment at each reset (%).
- Enter or select lifetime rate cap (%).
- Read the calculated result; change any measurement to compare alternatives.
Formula
amortize at the initial rate during the fixed period; at each annual reset the rate moves by the assumed adjustment (bounded by the cap and a 0% floor) and the payment is recalculated on the remaining balance and term
- loan
- Loan amount
- termMonths
- Term (months)
- fixedYears
- Fixed-rate period (years)
- initialRate
- Initial rate (%)
- adjustPct
- Assumed rate adjustment at each reset (%)
- capRate
- Lifetime rate cap (%)
Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
Worked example
For arm calculator, the following measurements illustrate the exact method: Loan amount: 350000; Term (months): 360; Fixed-rate period (years): 5; Initial rate (%): 5.75; Assumed rate adjustment at each reset (%): 1; Lifetime rate cap (%): 10.75.
Inputs
- Loan amount$350000
- Term (months)360
- Fixed-rate period (years)5
- Initial rate (%)5.75 %
- Assumed rate adjustment at each reset (%)1 %
- Lifetime rate cap (%)10.75 %
Result
- Initial monthly payment$2,042.50
- Highest monthly payment in this scenario$3,065.59
- Rate at the end of the scenario10.75%
- Total interest in this scenario$667,483.55
- Payments at the initial rate60
Results explained
- Initial monthly payment
- Initial monthly payment from the formula above. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
- Highest monthly payment in this scenario
- Highest monthly payment in this scenario from the formula above. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
- Rate at the end of the scenario
- Rate at the end of the scenario from the formula above. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
- Total interest in this scenario
- Total interest in this scenario from the formula above. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
- Payments at the initial rate
- Payments at the initial rate from the formula above. Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
Frequently asked questions
amortize at the initial rate during the fixed period; at each annual reset the rate moves by the assumed adjustment (bounded by the cap and a 0% floor) and the payment is recalculated on the remaining balance and term
Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: Annual adjustments after a fully fixed initial period; periodic adjustment caps other than the lifetime cap are not modeled, so enter an adjustment that already respects your loan's periodic cap (commonly 2% at the first reset, 1–2% after).