Calculators
Mortgage Points Calculator
Calculate the cost of mortgage discount points, the monthly saving from the lower rate and the break-even point.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Deciding whether to buy points
- Comparing lender quotes
- Using seller credits wisely
- Long-term mortgage planning
About this tool
What the Mortgage Points Calculator does
Discount points let you pay upfront for a lower interest rate; one point costs 1% of the loan. Whether that is worth it depends on how long you keep the loan. This calculator compares the two payments and shows how many months it takes for the savings to repay the points.
Formula
- Cost of points = loan × points ÷ 100
- Monthly saving = payment without points − payment with points
- Break-even months = cost ÷ monthly saving
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Loan amount | $320,000 |
| Rate without points | 6.75% |
| Rate with points | 6.25% |
| Points | 2 |
| Loan term | 30 |
| Years you expect to keep the loan | 7 |
| Result | Value |
|---|---|
| Break-even | 60.8 months |
| Net saving over the years you keep it | $2,438 |
| Cost of points | $6,400 |
| Monthly payment saving | $105.22 |
| Payment without points | $2,075.51 |
| Payment with points | $1,970.30 |
How to read the result
If you are likely to sell or refinance before the break-even point, points usually lose money.
The same cash could go towards a larger down payment instead, which also lowers the payment and may remove mortgage insurance.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
A fee of 1% of the loan amount paid at closing to reduce the interest rate.
It varies by lender and market, often roughly 0.125 to 0.25 percentage points.
In the US, points on a home purchase loan can often be deducted; check current rules.
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