Fixed vs Floating Rate Calculator

Work out fixed vs floating rate instantly with clear inputs, formula shown and shareable results.

About Fixed vs Floating Rate Calculator

A fixed rate buys certainty at a premium; a floating rate starts lower but resets. Modelling a floating loan that holds today's rate for two years and then reprices upward shows how large a rise the fixed premium is really insuring against.

Formula

Break-even view

Compare total interest on a fixed EMI against a floating path that reprices after the initial period

Worked example

With the default values below, Fixed vs Floating Rate Calculator returns Fixed Minus Floating Total Interest of -$263,602.07. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan Amountminimum 0: 3,000,000
Fixed Rate Offeredaccepts 0–100 %: 9.2 %
Current Floating Rateaccepts 0–100 %: 8.5 %
Expected Rise In Floating Rateaccepts 0–10 %: 1.5 %

Results

Fixed Minus Floating Total Interest: -$263,602.07
Fixed-Rate EMI: $27,378.86
Floating EMI At Today's Rate: $26,034.70
Which Wins: Fixed looks cheaper under this rate path

Step by step

1Values used
2Break-even view
3Fixed Minus Floating Total Interest= -263,602.07
4Fixed-Rate EMI= 27,378.86
5Floating EMI At Today's Rate= 26,034.70
6Which Wins= Fixed looks cheaper under this rate path

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

How big a rise justifies paying for a fixed rate?

Roughly the point where the extra fixed interest equals the interest added by the expected path — try different rise assumptions to find it.

Can you switch later?

Most lenders allow a switch for a fee, which is worth checking before locking in a long fixed term.