Mortgage Points Calculator
Should you buy points? Use this calculator to find out.
How the mortgage points calculator works
Each discount point costs 1% of the loan and buys down your rate by roughly a quarter point. The calculator compares the payment with and without points, divides the points' cost by the monthly saving to find the break-even month, and projects the net lifetime saving.
Worked example: with loan amount of $300,000, loan term (years) of 30 and rate without points of 6.75%, the mortgage points calculator shows break-even on points of 61 months.
- Cost of points
- $6,000
- New rate
- 6.25%
- Monthly saving
- $98.64
- Lifetime net saving
- $29,511
The formula
Cost = loan × points%. Break-even = cost ÷ (payment without points − payment with the reduced rate). Net saving = monthly saving × payments − cost.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the mortgage points calculator
Are mortgage points worth buying?
Only if you keep the loan past the break-even point shown here. Buy points when you are confident you will stay in the home and loan long enough to recoup the upfront cost.
How much does one point lower my rate?
Roughly 0.25%, though it varies by lender and market. The calculator lets you set the reduction per point to match your specific quote.
Are points tax-deductible?
Discount points on a primary-residence purchase are often deductible, sometimes in the year paid. Confirm your situation with a tax professional — this tool focuses on the cash break-even.
Is the Mortgage Points Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.