Mortgage Points Break-Even Calculator
Find how many months of payments it takes for mortgage discount points to pay for themselves.
Mortgage figures are entered and computed on your device — nothing is sent anywhereTry: Loan amount=300000, Base interest rate=6.5, Discount points to buy=1, Rate drop per point=0.25, Loan term=30 → $3,000.00, 6.500%, 6.250%, $1,896.20, $1,847.15, $49.05, 62 months, 5.1 yrs
How to use
The break-even point is the number of monthly payments it takes for your monthly savings to add up to the upfront cost of the points. Before that month, you are behind. After it, you come out ahead — as long as you keep the loan.
FAQ
How much does one discount point cost?
One point costs 1% of your loan amount. On a $300,000 loan, one point costs $3,000.
How much does my rate drop per point?
A common rule of thumb is about 0.25% per point, but your lender sets the actual buydown schedule. Always read the loan estimate.
Are discount points worth buying?
Only if you keep the loan past the break-even month. The calculator shows that break-even point for your numbers.