Mortgage Points Calculator
Compare a mortgage with and without discount points: cost of points, both payments, monthly savings, break-even months and net savings over the years you keep it.
Interactive calculator · Method MORTGAGE-POINTS-1.0 · Last reviewed: 2026-11-04
Calculate your scenario
Cost of points = loan × points ÷ 100 (or the dollar cost you enter).
Your inputs
Default worked example. Edit the inputs to calculate your scenario.
Default worked example
Over 84 months: $66.82 × 84 payment savings + $1,439.76 lower balance − $4,000.00 points = $3,052.44; break-even is $4,000.00 ÷ $66.82 a month.
How to use the calculator
Enter the loan amount, term and the two quoted rates, then the points as a percent of the loan or as a dollar cost, and how many months you expect to keep the loan before selling or refinancing.
What the result means
One point ($4,000) on $400,000 cuts the payment from $2,661.21 to $2,594.39, saving $66.82 a month; that pays back in about 59.9 months, and keeping the loan 84 months nets about $3,052 including the lower balance.
Formula and units
Cost of points = loan × points ÷ 100 (or the dollar cost you enter). Each payment M = L × r ÷ (1 − (1 + r)^−n), r = rate ÷ 12, n = years × 12. Simple break-even = cost ÷ (payment without − payment with). Net savings at the holding period h = payment savings × h + (balance without points − balance with points after h months) − cost, where balance = L(1 + r)^h − M((1 + r)^h − 1) ÷ r.
Worked examples
One point on $400,000 over 30 years, kept 7 years: Loan amount: 400000 $; Loan term: 30 years; Rate without points (your quote): 7 % APR; Rate with points (your quote): 6.75 % APR; Points (1 point = 1% of the loan): 1 points; Upfront cost of points (if entered in dollars): 4000 $; How long you expect to keep the loan: 84 months; Points cost entered as: points.
Example result: Cost of points: $4,000.00; Monthly payment without points: $2,661.21; Monthly payment with points: $2,594.39; Monthly savings: $66.82; Simple break-even: 59.9 months; Net savings at your holding period: $3,052.44.
$6,000 of points on a 15-year loan, kept 3 years: Loan amount: 300000 $; Loan term: 15 years; Rate without points (your quote): 6.5 % APR; Rate with points (your quote): 6 % APR; Points (1 point = 1% of the loan): 1 points; Upfront cost of points (if entered in dollars): 6000 $; How long you expect to keep the loan: 36 months; Points cost entered as: amount.
Example result: Cost of points: $6,000.00; Monthly payment without points: $2,613.32; Monthly payment with points: $2,531.57; Monthly savings: $81.75; Simple break-even: 73.4 months; Net savings at your holding period: -$1,647.85.
Limitations and common mistakes
Both rates are your own quotes; nothing here is a market rate. Principal and interest only: taxes, insurance, mortgage insurance and other closing costs are left out, and the money spent on points is not credited with investment growth. Simple break-even ignores the faster principal paydown at the lower rate, which the net savings figure includes. Refinancing or selling early ends the comparison at that month.
Comparing only the monthly savings against the points cost while planning to refinance in a few years; check the net savings at your real holding period, not over the full term.
Sources and assumptions
Method MORTGAGE-POINTS-1.0; last formula review 2026-11-04. Sources and their supported claims. Calculation methodology.