Mortgage Points Break-Even Calculator
See how many months it takes to recover the cost of discount points through a lower monthly payment, and whether paying them makes sense for how long you will keep the loan.
Free · runs in your browser · Checked 30 September 2026Points break-even
Move the sliders or type your own numbers. Results are estimates that assume a constant rate and are not guaranteed.
🧠 How this is calculated
Cost of points = points × 1% × loan amount. Monthly savings = payment at the original rate − payment at the reduced rate. Break-even months = cost ÷ monthly savings.
Calculations run in your browser; nothing you enter is sent to us. Results are estimates that depend on the assumptions shown.
❓ FAQs
What is a discount point?
One point costs 1% of the loan amount and lowers the interest rate by an amount the lender quotes.
When do points make sense?
When you expect to keep the loan longer than the break-even period.
Is this financial advice?
No. The calculator shows what happens under the numbers you enter. Rates, limits and tax rules change; confirm with the provider or a licensed professional.
Results are illustrations, not offers or advice. Investments can lose value; bank deposits are FDIC-insured up to $250,000 per depositor, per insured bank, per ownership category.