Mortgage Points Calculator
Use this mortgage points calculator to estimate how long it may take monthly payment savings to recover the upfront cost of discount points.
- Last reviewed
- July 8, 2026
- Cost
- Free to use
- Data
- Runs in your browser
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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Result interpretation
How to read the result
- If you keep the mortgage longer than the break-even period, points may save money.
- If you sell, refinance, or repay earlier, points may not recover their upfront cost.
- Compare the result with closing costs, cash needs, and refinance plans.
Formula
Formula used
Break-even months = Point cost / Monthly payment savings
The result estimates how many months of savings are needed to recover the upfront cost of points.
Example
Mortgage points example
- Point cost = 3,000
- Monthly payment savings = 75
3,000 / 75 = 40 months
It takes about 40 months to recover the upfront cost through lower monthly payments.
Common mistakes
Check these before deciding
- Ignoring how long you expect to keep the mortgage.
- Comparing only monthly payment without checking upfront cash cost.
- Forgetting that refinancing can reset the analysis.
Limitations
What this estimate does not cover
- This estimate does not include tax effects, opportunity cost, lender rules, or future refinance rates.
- Actual savings depend on the final loan terms.
Use this as a mortgage planning estimate and confirm loan terms with your lender.
Methodology
How this calculator handles inputs
This calculator uses the values you enter above and applies the formula explained in the guide below. Results update in the browser and are intended for quick planning, comparison, and sanity-checking.
- Use consistent periods, currencies, and units across inputs.
- Review any assumptions before using the result in a decision.
- Recalculate when rates, prices, tax rules, or business terms change.
Important note
This tool provides general planning information only. It is not tax, legal, financial, accounting, or investment advice. Check the current rules for your location and speak with a qualified professional before making a high-stakes decision.
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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FAQ
Frequently asked questions
What are mortgage points?
Mortgage points are upfront fees paid to reduce the mortgage interest rate.
When are mortgage points worth it?
They may be worth it if you keep the loan longer than the break-even period and the upfront cash cost fits your plan.
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