Mortgage Points Calculator

A point is usually 1% of the loan, paid now for a lower rate later. How much rate you actually buy is on the lender's sheet, not ours.

Written for Equidwell and last checked in October 2026. We build the calculators on this site. We are not a lender, and this page is not advice for your loan.

Loan amount

Rate without points

Rate reduction per point

A common example is 0.25 percentage points. Your lender's quote controls the real reduction.

Cost per point

Percent of the loan amount. One point is often 1%.

Number of points

Years you keep the loan

First payment month

Upfront cost $3,200.00

Rate with points 6.500%

Payment without points $2,075.51

Payment with points $2,022.62

Monthly savings $52.89

Break-even is about 61 months.

Interest difference over the term $19,047.33. This is only a benefit if you keep the loan past the break-even.

How this calculator works

Upfront cost is the loan amount times the cost per point times the number of points.
The new rate is the starting rate minus the reduction per point.
Monthly savings are the old payment minus the new payment.
Break-even is shown only when the payment actually falls.

Points help only if you keep the loan long enough

Points are a bet that you keep the loan. Sell or refinance before the break-even month and the upfront fee can outlast the savings.

A quarter-point of rate per point is a common example, not a rule. When you have a loan estimate, type the reduction printed on it.

Sources

CFPB: Owning a home

Common questions

Are points the same as the origination fee?

Not always. Discount points buy a lower rate. An origination fee is a lender charge and may not change the rate. This page models discount points.

What if the payment does not fall?

The page does not show a break-even period. There is no monthly savings to recover the upfront cost.

Mortgage Refinance Calculator
Compare your current mortgage payment with a new rate and term. Break-even appears only when the new payment is lower.
Mortgage Payment Calculator
Estimate a US mortgage payment with principal, interest, taxes, insurance, HOA, and PMI. See the payoff date and amortization schedule.
Closing Cost Calculator
Add up editable estimates for origination, appraisal, title, recording, and other closing costs. A state name labels the estimate only.

Longer guides on these topics are linked from the guides library.