Mortgage Points Calculator
Estimate the cost of mortgage points and monthly payment savings.
How this calculator works
How to use this calculator
Enter the loan amount, number of points purchased, and estimated monthly payment savings. The calculator estimates upfront points cost and break-even time.
Formula used
Cost of Points = Loan Amount × Points ÷ 100; Break-Even Months = Cost of Points ÷ Monthly Savings
Example calculation
For a $300,000 loan with 2 points and $75 monthly savings, points cost $6,000 and the break-even time is 80.0 months.
What the result means
Mortgage points are upfront fees paid to reduce the interest rate. The break-even period helps you decide whether the upfront cost may be worth it.
Frequently asked questions
What is one mortgage point?
One mortgage point usually equals 1% of the loan amount.
Are points always worth buying?
Not always. Points are more useful when you keep the loan long enough to pass the break-even period.
Does this calculate the new mortgage payment?
No. It estimates points cost and break-even time based on the monthly savings you provide.