Company Marketcap

APR Calculator for Adjustable Rate Mortgages

Enter the ARM and its fees

$
%

The rate for the fixed period.

%

For example 30-day average SOFR.

%
points
%
$

Underwriting, processing, broker fees and prepaid interest. Leave out title, appraisal and other real-estate fees.

Rate caps and your own rate path
%
%
%
%
%

Disclosures assume the index stays put (0). Enter a change to see the APR on a path you expect.

Composite APR

Disclosure APR

–

Fully indexed rate

–

Starting payment

–

Highest payment with the index unchanged–
APR above the start rate–
APR if the start rate never changed–
APR on your rate path–
Prepaid finance charges–
Amount financed–
Finance charge–
Total of payments–

–

Regulation Z has lenders work out an ARM's APR from the start rate for as long as it lasts, then from the index value at closing plus the margin, limited by the caps (comment 17(c)(1)-10). Because the payments change, the disclosed APR may be off by up to 1/4 point.

Payment schedule behind the APR

The payment levels used for the disclosure APR, with the index held at today's value.

Number of paymentsPayment numbersRateMonthly payment

Results are estimates for educational purposes and are not financial, tax or legal advice.

Work out the composite APR of an adjustable-rate mortgage: the start rate for the fixed period, then the index plus margin as far as the caps allow, with points and fees included. Test your own index path alongside the disclosure figure. If you want to see how the figures change, the free amortization calculator gives you an instant result you can adjust as you go.