What are mortgage points?

Mortgage points are upfront fees paid to reduce your mortgage interest rate. One point equals 1% of your loan amount.

When does it make sense to buy points?

Buying points can make sense if you plan to keep your mortgage long enough to reach the break-even point, when your monthly savings outweigh the upfront cost.

Do points affect loan approval?

Points are optional and do not affect your eligibility for a mortgage. They only impact your rate and closing costs.

Can I change the number of points to compare different scenarios?

Yes, you can adjust the “Number of Points” field to see how different amounts affect your savings and break-even time.

What if I plan to sell or refinance early?

If you expect to move or refinance before your break-even point, buying points may not be worthwhile. The calculator helps you see how long it takes to recoup your investment.

How do I download a detailed payment schedule?

Use the “Export PDF” or “Export Excel” buttons to download the full amortization schedule for all 30 years. This lets you review year-by-year costs and savings.

Mortgage Points Calculator

Calculate mortgage points savings and break-even.

Inputs

Compare no points vs buying points (U.S.)

Loan Amount ($)

Term (years, 0.5–50)

Rate without points (APR %)

Rate with points (APR %)

Should be lower than rate without points

Points (e.g. 1 or 2)

1 point = 1% of loan at closing

Results

Points cost, monthly savings, and break-even

Points Cost

$7,000

Monthly Savings

$116

Break-even

5.02 yrs

Net Savings (life of loan)

$34,875

Monthly (no points): $2,329 · Monthly (with points): $2,212 · Break-even at 60.2 months

Cumulative Cost Comparison

All 30 years. No points vs with points (lines cross at break-even).

Yearly Comparison

First 15 years. Download full schedule for all 30 years.

Year	Cumulative (no points)	Cumulative (with points)	Savings to date
1	$27,943	$33,547	-$5,604
2	$55,885	$60,094	-$4,208
3	$83,828	$86,641	-$2,812
4	$111,771	$113,187	-$1,417
5	$139,714	$139,734	-$21
6	$167,656	$166,281	$1,375
7	$195,599	$192,828	$2,771
8	$223,542	$219,375	$4,167
9	$251,484	$245,922	$5,563
10	$279,427	$272,469	$6,958
11	$307,370	$299,015	$8,354
12	$335,312	$325,562	$9,750
13	$363,255	$352,109	$11,146
14	$391,198	$378,656	$12,542
15	$419,141	$405,203	$13,938

For educational and estimation purposes only; not financial or legal advice. U.S. context. Points and rate discounts vary by lender. If you sell or refinance before break-even, you may not recover the cost of points. Does not include property taxes, insurance, or PMI. Consult a lender for actual terms.

Step 1: Enter Your Loan Details

You’ll fill in a few simple fields:

Loan Amount ($): The total amount you plan to borrow (e.g., $350,000).
Loan Term (years): The number of years for your mortgage (e.g., 30).
Interest Rate Without Points (%): The rate you would pay if you don’t buy points (e.g., 7%).
Interest Rate With Points (%): The lower rate you’d receive by buying points (must be lower than the rate without points, e.g., 6.5%).
Number of Points: How many points you are considering purchasing (e.g., 2; each point is 1% of your loan amount).

Step 2: View Your Results

After clicking “Calculate,” you’ll see:

Points Cost: The upfront dollar amount needed to buy your chosen points.
Monthly Savings: The difference in your monthly payment, comparing with and without points.
Break-even: How long (in years and months) it will take for your savings to equal your initial investment in points.
Net Savings (life of loan): The total savings over the full term, if you keep the mortgage that long.
Monthly Payment Comparison: Displays your monthly payment in both scenarios for easy reference.

Step 3: Visualize Your Savings

Cumulative Cost Comparison Chart: See how your total payments add up over time, with and without points. The point where the lines cross is your break-even.
Yearly Comparison Table: Shows a year-by-year breakdown for the first 15 years, including cumulative costs and savings to date. You can download the full schedule for all 30 years.

Step 4: Export or Share Your Results

Copy: Instantly copy your results to your clipboard.

Export PDF/Excel: Download your results and detailed schedules for your records or to share with others.

Mortgage Points Calculator

Mortgage points, sometimes called discount points, are upfront fees paid to a lender at closing in exchange for a lower interest rate on your home loan. One point typically equals 1% of your total loan amount.

Paying points can reduce your monthly payment and total interest paid over the life of your mortgage, but it requires a larger upfront cost.

Homebuyers often wonder whether “buying points” is a smart financial move. The main question is: Will the upfront cost of points be offset by the monthly savings before you sell, refinance, or pay off your loan? This calculator helps answer that question, giving you a clear view of when (or if) your investment in points pays off.

How This Calculator Helps

This Mortgage Points Calculator is designed to help you decide whether buying mortgage points is financially worthwhile for your situation.

By entering your loan amount, loan term (in years), interest rate without points, interest rate with points, and the number of points you plan to buy, you can instantly compare two scenarios: one with points and one without.

The calculator provides these key results:

Points Cost: The upfront fee required to buy points.
Monthly Savings: How much you save each month with a lower interest rate.
Break-even Point: How many years it takes for your monthly savings to equal the upfront points cost.
Net Savings (life of loan): The total amount saved (or lost) over the full loan term.
Cumulative Cost Comparison: A year-by-year visualization of your total payments with and without points.

This clear side-by-side comparison takes the guesswork out of the decision, helping you make an informed choice.

Inputs

Results

Cumulative Cost Comparison

Yearly Comparison

How This Calculator Helps

Related calculators