Mortgage Points Calculator — Break-Even & Savings

How to use

1. Enter the loan amount and term.
2. Enter the interest rate without points and the rate the lender offers with points.
3. Enter how many points you would buy and how long you expect to keep the loan.
4. Read the monthly saving, break-even months and net benefit at your sell date.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance); content last reviewed September 2026. For decisions that matter, confirm with a licensed professional in your country.

About this tool

Paying points is a bet: cash today for a lower rate tomorrow, and the bet loses if you move or refinance early. This calculator runs it properly. It computes your monthly payment at both rates with a real amortization formula, shows the monthly saving, and prices the points at what they cost — each point is 1% of the loan amount. Cost divided by saving gives the break-even in months; compare that with how long you honestly expect to keep the loan and you get the net benefit or loss by the year you sell. Most break-evens land between four and seven years, which is why points suit long-haul owners and rarely suit five-year plans. The arithmetic here is exact for a fixed-rate loan; tax treatment and refinance risk are yours to judge — run those past a tax pro or loan officer.

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