Free mortgage points calculator
Calculate whether buying mortgage points makes sense — enter the cost, rate reduction, and expected stay to find your break-even month, updated live, as you type.
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Taxes, insurance & fees
All results are estimates. How accurate is this?
Your loan over time
Full Amortization Schedule
Your mortgage payment is $2,447.62 per month for a $400,000 home.
| Home price | $400,000.00 |
| Down payment | $80,000.00 (20%) |
| Loan amount | $320,000.00 |
| Interest rate | 6.5% |
| Loan term | 30 years (360 payments) |
| Principal & interest | $2,022.62 |
| Property tax (mo) | $300.00 |
| Home insurance (mo) | $125.00 |
| Total monthly payment | $2,447.62 |
| Total of 360 payments | $728,142.36 |
| Total interest paid | $408,142.36 |
How does the term affect my payment?
How does the down payment affect my payment?
Payment schedule
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Jul 2026 | $2,022.62 | $289.28 | $1,733.33 | $319,710.72 |
| 2 | Aug 2026 | $2,022.62 | $290.85 | $1,731.77 | $319,419.86 |
| 3 | Sep 2026 | $2,022.62 | $292.43 | $1,730.19 | $319,127.44 |
| 4 | Oct 2026 | $2,022.62 | $294.01 | $1,728.61 | $318,833.43 |
| 5 | Nov 2026 | $2,022.62 | $295.60 | $1,727.01 | $318,537.82 |
| 6 | Dec 2026 | $2,022.62 | $297.20 | $1,725.41 | $318,240.62 |
| 7 | Jan 2027 | $2,022.62 | $298.81 | $1,723.80 | $317,941.80 |
| 8 | Feb 2027 | $2,022.62 | $300.43 | $1,722.18 | $317,641.37 |
| 9 | Mar 2027 | $2,022.62 | $302.06 | $1,720.56 | $317,339.31 |
| 10 | Apr 2027 | $2,022.62 | $303.70 | $1,718.92 | $317,035.62 |
| 11 | May 2027 | $2,022.62 | $305.34 | $1,717.28 | $316,730.27 |
| 12 | Jun 2027 | $2,022.62 | $307.00 | $1,715.62 | $316,423.28 |
Results are estimates. Consult a professional.
How the mortgage points calculator works
Discount points are upfront fees you pay at closing in exchange for a permanently lower interest rate. One point costs 1% of the loan amount and typically buys down the rate by about 0.25 percentage points. The calculator finds the break-even month: how long until the monthly savings from the lower rate repay the upfront cost.
Worked example: $400,000 loan, 1 point at 7%
A buyer has a $400,000 loan quoted at 7% for 30 years. Their lender offers to reduce the rate to 6.75% if they purchase 1 discount point at closing.
Break-even months for 1, 2, and 3 points at different loan sizes
The table below shows the break-even period (in months) for purchasing 1, 2, or 3 discount points at different loan sizes. Base rate 7%, 0.25% rate reduction per point, 30-year fixed. Savings scale with loan size, so the break-even months are the same across loan amounts — what changes is the dollar cost and dollar savings.
| Points bought | $300k loan | $400k loan | $500k loan |
|---|---|---|---|
| 1 point (6.75%) | ~60 months (5 yr) | ~60 months (5 yr) | ~60 months (5 yr) |
| 2 points (6.50%) | ~61 months (5 yr) | ~61 months (5 yr) | ~61 months (5 yr) |
| 3 points (6.25%) | ~63 months (5.3 yr) | ~63 months (5.3 yr) | ~63 months (5.3 yr) |
Source: CFPB discount points explainer; standard amortization math. Break-even rounds to nearest month. Actual rate reductions vary by lender.
Because break-even months barely change with loan size, the decision comes down to: how long do you plan to keep this loan? If less than 5 years, skip the points. If more than 7 years, strongly consider them.
Tips for deciding whether to buy mortgage points
Buying points is a bet on staying in the loan past the break-even date. The math is simple, but the life factors are not. Here is what to weigh before writing a check at closing.
- Calculate your real break-even first — don't rely on the lender's rule of thumb. Use the actual rate reduction they quote and your specific loan amount. Break-even varies more between lenders than most buyers realize.
- Estimate how long you will stay — the national median tenure in a home is 8–10 years, but first-time buyers move sooner, often within 5–7 years. Be realistic: if you might relocate for work within 4 years, skip the points.
- Points are tax-deductible in the year paid — for a home purchase (not a refinance), discount points are generally fully deductible as mortgage interest in the year of closing if you itemize. Confirm with a tax advisor.
- Compare points to a larger down payment — the same cash that buys two points could instead reduce the loan principal by 1%, which lowers every future interest charge. Run both scenarios.
- Negotiate points alongside the rate — in a buyer's market or when lenders compete, you can often get a rate reduction without paying full-price points. Ask for a Loan Estimate that shows the rate at 0, 1, and 2 points.
Accuracy and limitations
Break-even calculations assume the rate reduction is exactly as quoted, payments are made on the standard amortization schedule, and you do not refinance before break-even. In practice, refinancing resets the clock: if you refinance at month 40 and break-even was month 60, the points were a net loss. The 0.25% per point reduction is a common market norm, not a law — your Loan Estimate will show the actual rate reduction for the points you are being charged.
Not financial advice — consult a mortgage professional for your specific situation.
Mortgage points terms defined
About this mortgage points calculator
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