Mortgage Points Calculator
Decide whether buying mortgage discount points is worth it: upfront cost, monthly savings and the break-even month.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the loan amount, the rate without points and the term.
- 2Enter the number of points and how much each lowers the rate.
How it's calculated
Cost = points × 1% of the loan. Break-even = cost ÷ monthly payment savings. Each point typically lowers the rate by about 0.25 percentage points, but offers vary.
Frequently asked questions
What is a mortgage point?
A fee of 1% of the loan amount paid at closing to lower your interest rate.
When are points worth buying?
When you'll keep the loan longer than the break-even period — without refinancing or selling first.
Are points tax deductible?
Often, for a primary-residence purchase in the US, if you itemize. Check IRS rules or ask a tax professional.