Mortgage Points Calculator

Calculate mortgage discount point cost and break-even time from monthly payment savings.

Points Cost

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Break-Even Months

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Break-Even Years

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Net Savings After 5 Years

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Guide

How it works

Use this calculator to estimate whether mortgage points may be worth paying.

What this calculator does

The mortgage points calculator estimates point cost, break-even months, break-even years, and net savings after five years.

Mortgage Points Formula

Points Cost = Loan Amount x Points Percentage

Break-Even Months = Points Cost / Monthly Savings

Example calculation

If one point on a 300,000 mortgage costs 3,000 and saves 75 per month, the break-even point is 40 months.

When to use this calculator

  • comparing rate buydown options
  • evaluating refinance offers
  • estimating break-even time
  • deciding how long you need to keep the loan

FAQs

What is one mortgage point?

One point usually equals 1% of the loan amount.

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