Mortgage Points Calculator
Compare point cost, monthly payment difference and a simple break-even period for two rates.
What would you like to do next?
Test the tradeoff between upfront points and rate
Enter the proposed loan amount, term, rate without points, rate after buying points and the number of discount points. The tool converts points into an upfront dollar cost, calculates both principal-and-interest payments and divides that cost by the monthly difference to show a simple break-even period. It makes two quoted options easier to compare on one consistent loan balance.
Review the complete lender worksheets
A simple break-even does not include the time value of cash, taxes, insurance, prepaid interest, lender credits or a sale and refinance before the break-even date. One point commonly means one percent of the loan, but the rate reduction is lender-specific. Compare official disclosures and ask how every charge is classified.
Frequently asked questions
How much does one point cost?
The tool calculates one point as one percent of the entered loan amount.
How is break-even estimated?
Point cost is divided by the monthly principal-and-interest payment difference.
Does one point always reduce the rate equally?
No. The user enters the actual quoted rate with points because pricing varies.