ARM Loan Payment Projector

How to calculate Adjustable-Rate Mortgage (ARM) calculator?

This calculator projects future monthly payments after an interest-rate adjustment by recomputing the payment using the remaining principal, the remaining term, and the new interest rate.

Use the standard loan-payment formula where the monthly payment M is: M = P * r / (1 - (1 + r)-n), with P = remaining principal, r = monthly rate (annual_rate / 12), and n = remaining months.

Using the Adjustable-Rate Mortgage (ARM) calculator calculator: an example

Example values: remaining principal $200,000; remaining term 300 months; new annual rate 6%.

Step-by-step calculation:

1. Convert the annual rate to monthly: r = 6% / 12 = 0.005.
2. Set P = $200,000 and n = 300 months.
3. Compute the payment: M = 200000 * 0.005 / (1 - (1.005)^-300) ≈ $1,199.10.
4. Compare this projected payment to your current payment and factor in any caps, fees, or escrow changes when planning your budget.

Frequently Asked Questions

Does this include taxes and insurance?

No. This calculator shows principal and interest only; include taxes and insurance (escrow) separately to estimate your full monthly payment.

What about rate caps and adjustment limits?

The projection assumes the provided new rate is permitted; actual adjustments may be limited by periodic and lifetime caps specified in your loan contract, so verify your loan terms.

Can I model an interest-only period?

Not directly. Interest-only periods alter amortization and payment calculations; adjust remaining principal and term manually or use a dedicated interest-only calculator for accurate results.