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Mortgage Points Calculator

Compare upfront discount points with monthly payment savings and break-even time.

One point is commonly 1% of the loan amount. Tax treatment and lender pricing can vary, so use the lender's actual quote when available.

Method

The calculator compares two fixed-rate loan payments. Point cost is points multiplied by 1% of loan amount plus any other entered point-related costs.

Example

One point on a $350,000 mortgage costs $3,500. If buying the point saves $110 per month, the simple break-even period is about 32 months.

Common mistakes

Do not buy points based only on lifetime interest savings if you may refinance or sell before the break-even date.

Limitations

Break-even ignores the time value of money, taxes, refinance probability and whether points are included in APR. Use an official loan estimate before deciding.

References

Last reviewed: 2026-05-16

Before relying on this result

Use this calculator together with the formula, assumptions, limitations and examples on the page. If the topic involves health, tax, lending, investment, legal, safety or current-rate decisions, treat the number as an estimate and check the relevant primary source or professional guidance.

Calculator metadata last reviewed: 2026-05-14.