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ARM vs Fixed Rate Mortgage Calculator

Compare how your monthly payments and total costs differ between a fixed-rate mortgage and an adjustable-rate mortgage over your planned holding period.

Quick answer: An ARM can save money if the lower starting rate outweighs future adjustment risk. A fixed mortgage wins when payment certainty or rising-rate risk matters more.

SWReviewed by SwitchWize Research Desk · Last reviewed July 18, 2026
Fixed Monthly Payment
$2,770
Fixed Monthly Payment
$2,770
ARM Monthly Payment (initial period)
$2,334
ARM Monthly Payment (after adjustment)
$2,718
Fixed Payments Made (your timeline)
$332,342
Side-by-side comparison
ARM Payments Made (your timeline)
$293,916
Signed Fixed-Minus-ARM Payments
$38,426
Diagnostic

The signed fixed-minus-ARM payment difference is $38,426 over the entered time in the home.

Payments made are not total borrowing cost; compare balances, fees, caps, margin, and the lender's ARM disclosures before choosing.

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Where this rate sits

Today's rate of 7.40% is at the 97th percentile of its ~5 years range (2.98%–7.79%). That's near the top of its own recent range.

FRED series (mortgage30y). Historical data, not a forecast.

What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare payments made under a simplified ARM scenario with a 30-year fixed mortgage over an entered timeline.

  2. 2

    Compare the result against current market-rate options

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub
Compare
You could gain ~$2,770/yr. Compare nowMove from calculation to current product options.
Rate Trend
Track mortgage ratesUse market context before you decide when to act.
Guide
Your Adjustable-Rate Mortgage Resets in 2027. Work Out Your New Payment Before You Refinance.How to work out your new adjustable-rate payment from your own loan papers, and whether to refinance, pay the balance down or keep the loan.
Money Map
Map this $2,770/yr opportunitySave this opportunity and see how it fits your broader money plan.
Alert
Create a rate alertWatch the market instead of checking manually.

About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates, your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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30-yr fixed · 15-yr fixed · FHA · VA · ARM: ranked by APR
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Mortgage rates shown on SwitchWize compare pages include loan type, assumed FICO, LTV, and points. Representative only. Verify all terms directly with the lender. Advertising disclosure

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Frequently Asked Questions

Everything you need to know.

What does an example ARM vs Fixed Rate Mortgage Calculator calculation look like?
Using this calculator's own default assumptions, a loan amount of $400,000, 30-year fixed rate (apr) of 6.72% and arm initial rate (apr) of 5.75% produces an estimated fixed monthly payment of $2,586 and arm monthly payment (initial period) of $2,334. Enter your own numbers above to see how it changes for your situation.
Why would I choose an ARM if it costs more in the long run?
An ARM's lower initial rate means smaller payments early on, which helps if you plan to sell or refinance before the rate adjusts, or if you expect your income to rise. You're betting that your situation changes before the payment shock arrives; the calculator shows whether that timing works in your favor.
How much does the payment increase when an ARM adjusts?
The payment jump depends on how much the rate rises and how many years of the loan remain. A larger rate increase or a longer remaining term creates a bigger monthly payment shock; this calculator shows your exact ARM payment before and after to let you see the impact.
Is the ARM vs Fixed Rate Mortgage Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the ARM vs Fixed Rate Mortgage Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare mortgage rates, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

ARMs typically start with a lower initial rate than fixed mortgages, making early payments smaller, but the rate adjusts upward after the fixed period ends, potentially raising your payment significantly. Understanding the payment shock and total cost difference helps you decide whether the short-term savings justify the long-term risk, or whether payment stability matters more for your budget.

How to Use It

  1. 1Enter your total loan amount.
  2. 2Enter the fixed APR you'd pay under a fixed-rate mortgage.
  3. 3Enter the ARM's initial APR during its introductory period.
  4. 4Enter how many years the ARM's introductory rate stays locked.
  5. 5Enter the ARM's APR after the fixed period ends.
  6. 6Enter how long you plan to stay in the home.
  7. 7View your fixed monthly payment, ARM payments in each phase, total payments made under each scenario over your timeline, and the signed difference to see which costs less overall.
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