Mortgage Discount Points Calculator
See whether paying more at closing for a lower mortgage rate could pay off before you move or refinance.
Compare the two rates
Enter the quote without points and the quote with points. Use the same loan amount for both.
Your comparison
Estimated principal-and-interest payments for a 30-year fixed mortgage.
In plain English
The break-even point is when all the monthly savings added together finally equal the upfront points cost. Staying longer than that gives the lower rate time to produce net savings; leaving or refinancing sooner means you may not recover the upfront cost.
Check your base monthly payment with the mortgage payment calculator →
Method
Both monthly payments use the standard loan amortization formula. Break-even equals the upfront points cost divided by the monthly payment savings. The calculation assumes a 30-year fixed-rate loan and that you stay in the home for the full period entered.
What is excluded
- Tax deductibility of mortgage points
- Opportunity cost of the upfront cash
- Closing costs beyond points
- Refinancing before the expected stay ends
- Adjustable-rate mortgage behavior
- PMI, property taxes, and homeowners insurance