variable rate

Changes over time

A variable rate is an interest rate or other financial charge that fluctuates over time, typically tied to a benchmark index or market conditions.

Contrasts with a fixed rate, which stays constant.

Common in mortgages, credit cards, and loans: We got a variable rate mortgage when rates were low.

Variable rates can work in your favor when benchmarks drop, but expose borrowers to risk when they rise.

Opposites
rate stability

variable ratefixed rate

Unchanging interest percentage

flat rate · fixed

Family

rate, variable

Familiarity
Top 20,000
Profile
Used worldwide · Timeless · Abstract · Rated G