Mortgage Points Calculator
Is buying down your rate with points worth it?
Enter your values
Enter the loan amount in $.
Enter the rate without points in %.
Enter the rate with points in %.
Enter the points purchased you are working with.
Enter the term in years.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Break-even
- 60.8 months (5.1 years)
- Cost of points
- $7,000.00
- Monthly saving
- $115.08
- Lifetime interest saved
- $34,429.93
Working
- 1$7,000.00 / $115.08 = 60.8 months
Quick answer
Each discount point costs 1% of the loan and typically cuts the rate about 0.25%. Break-even is the point cost divided by monthly savings.
break-even months = point cost / monthly payment saving
At a glance
| What it does | Is buying down your rate with points worth it? |
|---|---|
| Category | Finance |
| Inputs needed | Loan amount, Rate without points, Rate with points, Points purchased, Term |
| Main output | Break-even |
| Formula | break-even months = point cost / monthly payment saving |
| Cost | Free — no sign-up, no download |
How to use the Mortgage Points Calculator
- 1Enter the loan amount and the two rates you have been quoted.
- 2Enter how many points the lower rate costs.
- 3Buy points only if you will hold the loan past break-even.
Inputs explained
- Loan amount($)
- Enter the loan amount in $.
- Rate without points(%)
- Enter the rate without points in %.
- Rate with points(%)
- Enter the rate with points in %.
- Points purchased
- Enter the points purchased you are working with.
- Term(years)
- Enter the term in years.
Worked example
Using the values the calculator loads with:
Inputs
- Loan amount350000 $
- Rate without points6.75 %
- Rate with points6.25 %
- Points purchased2
- Term30 years
Results
- Break-even60.8 months (5.1 years)
- Cost of points$7,000.00
- Monthly saving$115.08
- Lifetime interest saved$34,429.93
- $7,000.00 / $115.08 = 60.8 months
Frequently asked questions
Are points tax deductible?
Points on a primary residence purchase are often deductible in the US; confirm with a tax professional.
What if I refinance early?
You lose the remaining benefit, so short expected holds argue against points.
What do I need to enter into the Mortgage Points Calculator?
Just 5 values: loan amount, rate without points, rate with points, points purchased, term. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Mortgage Points Calculator work out the answer?
Each discount point costs 1% of the loan and typically cuts the rate about 0.25%. Break-even is the point cost divided by monthly savings. It applies the formula break-even months = point cost / monthly payment saving and shows the working so you can check each step by hand.
Is the Mortgage Points Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.