Calculator
Fixed vs. variable loan stress test
The index your note references, e.g. Prime.
Use a negative number for a cut.
Fixed payment
$12,265.26
Variable, after reset
$12,621.28
Variable, starting
$12,132.76
Peak variable rate
9.00%
Over the life of the loan the variable option costs $36,860 more in interest than fixed. Breakeven: a benchmark move of about +0.30 pts at the first reset.
DSCR: 1.36x fixed · 1.32x variable at its highest payment.
Models one benchmark move held for the rest of the term, re-amortized at each reset. Real notes may have floors, caps, fees or different reset rules — check yours. Educational estimate only.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistThe formulas
- Variable rate = benchmark + spread, limited by any cap you enter.
- At each reset the remaining balance is re-amortized over the remaining term.
- Breakeven = the benchmark move at the first reset that makes lifetime variable interest equal fixed interest.
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Read more: Fixed vs. variable business financing