Work out fixed vs floating rate instantly with clear inputs, formula shown and shareable results.
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.
Break-even view
Compare total interest on a fixed EMI against a floating path that reprices after the initial period
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.
Roughly the point where the extra fixed interest equals the interest added by the expected path — try different rise assumptions to find it.
Most lenders allow a switch for a fee, which is worth checking before locking in a long fixed term.