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Adjustable Rate Mortgage (ARM) Calculator
Model ARM payments through the fixed period and after the first reset.
Enter values to see your result
Frequently asked questions
What is a 5/1 ARM?
A mortgage with a rate fixed for 5 years, then adjusting once per year ("/1") based on an index + margin until the loan matures.
Why choose an ARM over fixed?
Initial rate is usually 0.5–1.5% lower. Smart choice if you plan to sell or refinance within the fixed period. Risky if you stay long-term.
What are ARM caps?
Three limits: initial (max first adjustment), periodic (max yearly change), and lifetime (total max above initial). Typical caps: 2/2/5 or 5/2/5.
What happens at reset?
New rate = current index (often SOFR) + fixed margin, capped by the limits. If rates rose significantly, payments can jump substantially.