Mortgage Points Break-Even Calculator
Find when paying discount points pays off.
Enter your values
ⓘ Live results
Results
- Cost of points
- $5,250.00
- Payment without points
- $2,270.09
- Payment with points
- $2,155.01
- Monthly savings
- $115.08
- Break-even period
- 45.6 months (3.8 years)
Quick answer
Buying points pays off once your monthly savings exceed the upfront cost, which typically takes several years — worthwhile mainly if you'll keep the loan that long.
Break-even months = points cost / monthly savings
How to use the Mortgage Points Break-Even Calculator
- 1Enter the loan amount and the rate quoted with and without points.
- 2Enter how many points (1 point = 1% of the loan) you'd buy.
- 3Compare the break-even period to how long you expect to keep the loan.
Worked example
Using the values the calculator loads with:
Inputs
- Loan amount350000 $
- Rate without points6.75 % APR
- Rate with points6.25 % APR
- Points purchased1.5 points
- Loan term30 years
Results
- Cost of points$5,250.00
- Payment without points$2,270.09
- Payment with points$2,155.01
- Monthly savings$115.08
- Break-even period45.6 months (3.8 years)
Frequently asked questions
Are points tax-deductible?
Often yes on a primary residence purchase, but rules vary — check with a tax professional.
What if I sell before break-even?
You lose money on the points, since the monthly savings never recovered the upfront cost.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.