Mortgage Points Calculator (2026)
Lenders often offer to lower your rate if you pay discount points upfront. Whether that is smart depends on one number: how long until the monthly savings repay the upfront cost. Enter your loan, the rate with and without points, and the cost of the points to see your monthly savings and break-even month. Everything runs in your browser; nothing is stored or sent anywhere.
Estimate updates as you type. One point usually costs 1% of the loan, so on a $350,000 loan one point is about $3,500.
How the break-even is calculated
The calculator finds the monthly payment at each rate using the standard amortization formula, then takes the difference as your monthly savings. Dividing the upfront cost of the points by that monthly saving gives the break-even month — the point where the savings have fully repaid what you paid. Keep the loan past that month and the points come out ahead; sell or refinance sooner and you lose money. The net saved over the term figure subtracts the upfront cost from the total payment savings across the full loan, assuming you keep it the whole time.
When points make sense — and when they don't
Buying points tends to pay off when you plan to stay in the home and keep the loan for many years, well beyond the break-even month, and when you have cash to spare after your down payment and reserves. It tends to backfire when you expect to move or refinance within a few years, because you may sell before recovering the upfront cost. If cash is tight, that same money often does more as a larger down payment or an emergency cushion than as prepaid interest.
Common questions
How much does one point lower my rate?
It varies by lender and market, but one point often lowers the rate by roughly 0.125 to 0.25 percentage points. Always use the actual quoted rates with and without points, which is exactly what this calculator asks for.
What is the difference between discount points and origination points?
Discount points buy down your interest rate. Origination points are a lender fee for processing the loan and do not lower your rate. This tool is about discount points and their rate savings.
Is my data saved?
No. The calculation runs entirely in your browser. Nothing you type is stored, transmitted, or shared.
Method: monthly payment at each rate uses the standard amortization formula P = L × r ÷ (1 − (1 + r)^−n); break-even month = upfront point cost divided by monthly payment savings. Tax effects and the time value of money are not included. General references include published explainers from NerdWallet, Bankrate, and the Consumer Financial Protection Bureau. Always verify rates and point costs with your lender.