Mortgage & financing

Mortgage Points Break-even Calculator

Compare upfront discount-point cost with monthly payment savings. Replace every default with figures that apply to your property and location.

What this calculator estimates

Compare upfront discount-point cost with monthly payment savings. It combines the inputs below to produce Break-even time. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces 38.4 months. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Loan amount — sample input: 450000 currency units
• Points purchased — sample input: 1 %
• Rate without points — sample input: 6.5 %
• Rate with points — sample input: 6.1 %
• Amortization — sample input: 30 years

How to interpret the result

Compare the payment with your total housing budget, not income alone. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Avoid assuming the lowest advertised rate applies to every borrower. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.