One point for a quarter-point rate cut
$360,000.00 at 6.75% or 6.38% with 1 point at $3,600.00 each.
Payment $2,334.95 becomes $2,245.93. Break-even 3 years 4 months.
Mortgage points break-even calculator
How many months the lower payment takes to cover the cost of the points.
You pay for the points in cash now. The loan amount does not go up.
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Dollars. One point is often 1% of the loan.
yr
More · currency symbol
Symbol only. Amounts are not converted.
Break-even
3 years 4 months
The lower payment covers the points in 3 years 4 months.
You save $89.02 a month.
- Payment without
- $2,334.95
- Payment with points
- $2,245.93
- Cost of the points
- $3,600.00
- Interest after the cost
- $28,447.74
Next: Refinance break-evenA new loan, not a lower rate on this one.
How this is calculated
Cost of the points divided by the payment drop
months = (points × cost per point) ÷ (payment without − payment with)
| points | How many discount points you buy. |
|---|---|
| cost per point | The dollars one point costs on this loan, not a percent. |
One point is often 1% of the loan. Type that dollar amount. The page does not turn a percent into dollars for you.
Interest savings over the full term are reduced by the cost. Leaving before the break-even month means the points cost more than they saved.
Worked examples
Loading an example fills the tool and scrolls you back to the result. Money examples stay in US dollars on the page. The symbol you picked changes; the numbers do not convert.
Two points for a larger cut
$360,000.00 at 6.75% or 6.13% with 2 points at $3,600.00 each.
Payment $2,334.95 becomes $2,187.40. Break-even 4 years 1 month.
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<iframe src="/embed/mortgage-points-break-even-calculator" title="Mortgage points" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>Questions
What is a point?
A fee paid at the start in exchange for a lower rate. This page prices each point as the dollar amount you type.
Should I buy the points if I might move?
Only if you expect to keep the loan past the break-even month. Before that, the lower payment has not covered the fee.
Is the cost added to the loan?
No. It is cash at the start. Financing it would change both the balance and the payment.