Glossary

Reset frequency

Reset frequency is how often a variable rate is recalculated against the benchmark — the more frequent, the faster benchmark moves reach your payment.

2 min read

How oftenRate recalculates

Faster resetQuicker pass-through

Definition

Reset frequency sets how often a rate reset occurs. A monthly reset passes benchmark changes through quickly; a quarterly or annual reset delays them, so you feel a rise later — but also a cut later. It shapes how promptly a base-rate move affects you.

In plain terms

Frequent resets mean your rate tracks the market closely; infrequent resets smooth it out, for better or worse.

Why it matters for your company

Factor reset frequency into how you plan for rate moves. See rate reset and rate pass-through.

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