10/1 ARM Calculator
Calculate payments and analyze adjustable-rate mortgage with 10-year fixed period
Calculate 10/1 ARM Mortgage
Original loan amount of your mortgage
Total mortgage term duration
Fixed rate for first 10 years
Maximum interest rate allowed
Rate Adjustment Settings
Expected annual rate change after 10 years
10/1 ARM Results
Payment Analysis
Risk Analysis
Example Calculation
$300,000 ARM Example
Loan Amount: $300,000
Loan Term: 30 years
Initial Rate: 5.0% (fixed for 10 years)
Expected Adjustment: +0.5% annually
Rate Cap: 8.0%
Payment Schedule
Years 1-10: $1,610/month at 5.0%
Years 11-30: $1,996/month at 5.5%
Payment Increase: $386/month (24.0%)
Maximum Payment: At 8.0% cap
10/1 ARM Features
Fixed Rate Period
Initial rate locked for 10 years
Annual Adjustments
Rate adjusts yearly after year 10
Rate Caps
Maximum rate protection
Pros & Cons
✓ Advantages
- • Lower initial rates than fixed mortgages
- • 10-year rate stability
- • Good for short-term ownership
- • Easier qualification
⚠ Disadvantages
- • Rate uncertainty after 10 years
- • Payment increases possible
- • Complex loan structure
- • Prepayment penalties may apply
Understanding 10/1 ARM Mortgages
What is a 10/1 ARM?
A 10/1 ARM (Adjustable Rate Mortgage) is a hybrid mortgage loan where the interest rate is fixed for the first 10 years, then adjusts annually for the remaining loan term. The "10" represents the fixed-rate period, and the "1" indicates annual adjustments thereafter.
How Does it Work?
- •Initial 10 years: Fixed interest rate and payment
- •After year 10: Rate adjusts annually based on market index
- •Rate caps limit how much the rate can increase
- •Payment recalculated each adjustment period
Payment Formula
Payment = (P × r × (1+r)^n) / ((1+r)^n - 1)
- P: Principal loan amount
- r: Monthly interest rate (annual rate ÷ 12)
- n: Total number of payments
Important: After the 10-year fixed period, your payment will be recalculated based on the remaining loan balance, remaining term, and new interest rate.
Rate Adjustment
After 10 years, the rate typically adjusts based on a benchmark index (like 1-year Treasury) plus a margin. Rate caps protect borrowers from excessive increases, typically limiting annual increases to 2% and lifetime increases to 5-6%.