Variable Interest Rate Calculator
Calculate payments for adjustable-rate mortgages (ARM) and see how variable rates affect your monthly payment.
Variable Rate Calculator
Calculate payments for adjustable-rate mortgages
Use our mortgage calculator to estimate variable rate payments
Go to Main CalculatorARM Features
- Initial Rate: Lower than fixed rates
- Rate Caps: Limit increases
- Adjustment Period: Annual changes
- Index Tied: Prime Rate, LIBOR
Example: 5/1 ARM at 4.5%
Years 1-5
Rate: 4.5% (fixed)
Payment: $1,520/month
Year 6+
Rate: Variable (index + margin)
Payment: Changes annually
Variable Rate Considerations
Rate Caps
Most ARMs have caps that limit how much your rate can increase. Common caps are 2% per adjustment and 5-6% over the life of the loan.
Payment Shock
Your payment can increase significantly when rates adjust. Make sure you can afford the maximum possible payment.
When to Choose ARM
ARMs are good if you plan to move or refinance before the rate adjusts, or if you expect rates to stay low long-term.
Calculate Your Variable Rate
Use our mortgage calculator to see how variable rates affect your payments.
Start Calculating