Finance Calculators

Mortgage Points Calculator

Calculate the cost of buying mortgage discount points, the resulting monthly savings, and how long it takes to break even.

Loan amount

Number of points purchased

Interest rate without points

Rate reduction per point

Loan term

years

Cost of points —

Monthly payment savings —

Break-even period —

About the Mortgage Points Calculator

Mortgage discount points let you pay an upfront fee to reduce your interest rate. Each point typically costs 1% of the loan amount and lowers the rate by a fraction of a percent.

Formula: Points Cost = Loan Amount × Points × 1% · Break-even Months = Points Cost ÷ Monthly Payment Savings

Buying points is worth it if you plan to keep the loan longer than the break-even period, if you might sell or refinance sooner, paying points may not pay off.