ARM (Adjustable-Rate Mortgage) Calculator
Model a 5/6, 7/6, or 10/6 SOFR ARM. See the intro payment, what payments could look like at the first adjustment, and the worst case once the lifetime cap is hit.
Your numbers
Loan
Common ARMs: 5, 7, or 10 years
Today's SOFR ARMs adjust every 6 months
Illustrative example rate. Not an available or quoted rate.
Index & margin
SOFR is the benchmark used by most new ARMs
Added to the index at each adjustment
Caps
First adjustment limit vs intro
Each later adjustment
Max ever over intro rate
A common cap structure written as 2/1/5 means 2% initial, 1% periodic, 5% lifetime.
Scenario
Intro payment
Fixed for the first 7 years at 6.125%.
At the first adjustment
Best case uses today's index + margin. Worst case bumps the rate by the full initial cap.
Lifetime worst case
Rate of 11.125% is the highest you could ever pay on this ARM.
Total interest (under chosen scenario)
Projected rate and payment
Shaded area shows the intro fixed period. After that, the rate adjusts every 6 months under your chosen scenario.
Year-by-year projection
| Year | Rate (start) | Monthly P&I | Interest paid | Principal paid | End balance |
|---|---|---|---|---|---|
| 1 | 6.125% | $2,552 | $25,585 | $5,038 | $414,962 |
| 2 | 6.125% | $2,552 | $25,268 | $5,356 | $409,606 |
| 3 | 6.125% | $2,552 | $24,930 | $5,693 | $403,912 |
| 4 | 6.125% | $2,552 | $24,572 | $6,052 | $397,860 |
| 5 | 6.125% | $2,552 | $24,190 | $6,433 | $391,427 |
| 6 | 6.125% | $2,552 | $23,785 | $6,839 | $384,589 |
| 7 | 6.125% | $2,552 | $23,354 | $7,269 | $377,319 |
| 8 | 11.125% | $3,795 | $41,789 | $3,755 | $373,565 |
| 9 | 11.125% | $3,795 | $41,349 | $4,194 | $369,371 |
| 10 | 11.125% | $3,795 | $40,858 | $4,685 | $364,685 |
| 11 | 11.125% | $3,795 | $40,310 | $5,234 | $359,451 |
| 12 | 11.125% | $3,795 | $39,697 | $5,847 | $353,604 |
| 13 | 11.125% | $3,795 | $39,012 | $6,532 | $347,072 |
| 14 | 11.125% | $3,795 | $38,247 | $7,297 | $339,776 |
| 15 | 11.125% | $3,795 | $37,393 | $8,151 | $331,625 |
| 16 | 11.125% | $3,795 | $36,438 | $9,105 | $322,520 |
| 17 | 11.125% | $3,795 | $35,372 | $10,172 | $312,348 |
| 18 | 11.125% | $3,795 | $34,181 | $11,363 | $300,985 |
| 19 | 11.125% | $3,795 | $32,850 | $12,693 | $288,292 |
| 20 | 11.125% | $3,795 | $31,364 | $14,180 | $274,112 |
| 21 | 11.125% | $3,795 | $29,703 | $15,840 | $258,271 |
| 22 | 11.125% | $3,795 | $27,848 | $17,695 | $240,576 |
| 23 | 11.125% | $3,795 | $25,776 | $19,767 | $220,809 |
| 24 | 11.125% | $3,795 | $23,462 | $22,082 | $198,726 |
| 25 | 11.125% | $3,795 | $20,876 | $24,668 | $174,058 |
| 26 | 11.125% | $3,795 | $17,987 | $27,557 | $146,502 |
| 27 | 11.125% | $3,795 | $14,760 | $30,784 | $115,718 |
| 28 | 11.125% | $3,795 | $11,155 | $34,389 | $81,329 |
| 29 | 11.125% | $3,795 | $7,128 | $38,415 | $42,914 |
| 30 | 11.125% | $3,795 | $2,630 | $42,914 | $0 |
Thinking about an ARM?
An ARM can make sense when you expect to move or refinance before the intro period ends. Talk it through with a loan officer to see if the math works for your plans.
Discuss Your ScenarioWant a plain-English walkthrough? ARM vs fixed-rate decision guide.
More advanced & tools calculators
Amortization Calculator
See exactly how each payment splits between principal and interest, with a full month-by-month schedule.
Open calculatorPrepayment Calculator
Mix lump sum, extra monthly, and biweekly payments. See how many months and how much interest you save.
Open calculator15 vs 30 Year Comparison
Compare a 15-year and a 30-year mortgage side by side. See the monthly difference and lifetime interest.
Open calculatorPoints & Rate Buydown Calculator
Model discount points or a temporary 2-1 / 3-2-1 buydown. Break-even, monthly savings, and total subsidy.
Open calculatorFrequently asked questions
How does a SOFR ARM actually work?
What do the caps mean on an ARM?
When does an ARM make sense?
Is this calculator a quote?
Related glossary terms
Was this helpful?
Quick thumbs up or down — it helps us know what to improve.
Want the story behind the numbers?
More advanced & tools calculators
Amortization Calculator
See exactly how each payment splits between principal and interest, with a full month-by-month schedule.
Open calculatorPrepayment Calculator
Mix lump sum, extra monthly, and biweekly payments. See how many months and how much interest you save.
Open calculator15 vs 30 Year Comparison
Compare a 15-year and a 30-year mortgage side by side. See the monthly difference and lifetime interest.
Open calculatorPoints & Rate Buydown Calculator
Model discount points or a temporary 2-1 / 3-2-1 buydown. Break-even, monthly savings, and total subsidy.
Open calculator