Use this ARM vs fixed rate mortgage calculator to compare an adjustable-rate mortgage against a 30-year fixed-rate loan and see exactly when each one wins. Model the introductory period savings, the post-adjustment payment risk, and the break-even point so you can pick the right loan for how long you plan to stay in the home. Pair it with our monthly payment calculator or the 15 vs 30-year comparison.
Example rate. Change it to match your quote; your APR will differ.
Example rate. Change it to match your quote; your APR will differ.
Example only. The real rate will be SOFR plus your margin, within your caps.
Locked for 30 years at 7.375%
Saves $126.86/mo
Total Savings in First 7 Years
By choosing the ARM
+$10,657
Estimated Payment After Year 7
If the rate moves to 8.125%
$3,653.00/mo
If the rate rises after the fixed period, an ARM held for the full term can end up costing more. In this scenario, the break-even point lands at 11 yr 6 mo. The ARM comes out ahead if you sell or refinance before then.
Results are estimates for illustration. Prefilled rates are examples based on national averages as of September 28, 2026, not offers. Your rate and APR depend on your credit, loan and property, and come from a Loan Estimate. Get started for a quote.
ARMs typically start with a lower interest rate, which means a noticeably lower monthly payment during the first few years compared to a fixed-rate mortgage.
Once the fixed period ends, the rate can change every six months with SOFR, within your caps. If rates rise, your payment rises too. You are trading a lower payment now for less predictability later.
If you know you'll sell or refinance before hitting that break-even mark, an ARM is usually the better move on paper. See our amortization schedule for a deeper view.
Disclaimer: This tool keeps things simple by assuming the ARM moves to the single rate you enter once the fixed period ends and stays there. Real 5/6, 7/6 and 10/6 ARMs follow SOFR plus a margin, can change every six months after the fixed period, and are limited by caps such as 2/1/5. These estimates show principal and interest only and leave out taxes, insurance and mortgage insurance, which will raise your total payment. Rates shown are examples, not offers; your rate and APR come from your Loan Estimate.
Take a look at some of the most common loan options and find the one that fits your situation best, from a conventional loan to a jumbo loan for higher-priced homes.
Great for first-time buyers
For veterans & military
For higher-priced homes