Mortgage Points Break-Even Calculator
Whether buying discount points pays off before you sell or refinance.
How it works
One point costs 1 percent of the loan. Monthly savings = payment at the original rate − payment at the reduced rate, using P × r ÷ (1 − (1 + r)^−n). Break-even months = cost of points ÷ monthly savings. If you sell or refinance before that point, the points lose money. The reduction per point varies by lender, so use the figure on your loan estimate. Example: One point on a $400,000, 30-year loan at 7 percent costs $4,000 and cuts the rate by 0.25 points. It saves $66.82 a month, breaks even in 59.9 months, and nets $1,612.68 over 7 years.
FAQ
Is this calculator free?
Yes. No signup is needed and nothing you enter is stored.
Is the result exact?
Results are rounded for display. For financial, medical, or legal decisions, confirm with a professional.
Do my numbers leave my device?
No. The calculation runs in your browser.