Compare mortgage points
Mortgage discount points break-even calculator
Compare a zero-point mortgage offer with an entered discount-points offer, including the upfront cost, payment change, break-even month, and estimated cost at your holding period.
Compare a zero-point fixed-rate offer with a same-loan offer where you pay discount points for a lower rate. Enter actual written offer terms; this page does not estimate what rate reduction a lender will offer.
Enter comparable written loan offers to estimate the break-even.
One discount point equals 1% of the loan amount. Your lender’s Loan Estimate controls the actual points charge and rate. This model assumes fixed rates and monthly principal-and-interest payments, and excludes taxes, insurance, other fees, tax effects, and the time value of money.
How to compare the offers
The tool calculates the points cost as the entered percentage of the loan amount. It estimates the monthly principal-and-interest payment for each entered rate using the same loan amount and remaining term. The break-even month is the first month when the cumulative payment savings plus the lower remaining balance on the points loan exceed the points paid upfront. At your entered holding period, it compares payments made plus the estimated remaining balance, then subtracts the upfront points cost.
The CFPB explains that points trade higher costs at closing for a lower interest rate, while the rate reduction depends on the lender, loan type, and market. Ask the same lender for comparable Loan Estimates with and without points, then compare costs across the shortest, longest, and most likely time you expect to keep the loan. CFPB guidance last reviewed October 19, 2023; checked November 3, 2026: How should I use lender credits and points?
For a broader mortgage cost check, use the full monthly housing-cost estimator or review the CFPB Loan Estimate guide. This calculator is an educational comparison, not a recommendation or loan quote.
How it works
Enter the same loan amount and term from two written fixed-rate offers, the points charge, and how long you expect to keep the loan. Results are estimates, not lender terms or advice.
Good to know
How are discount points priced?
This calculator models the entered discount-points percentage times the loan amount. The CFPB explains that one point equals one percent of the loan amount and points are paid at closing. Confirm the actual charge on the Loan Estimate.
Does this calculator tell me what rate reduction points will buy?
No. Enter the rates from comparable written offers. The CFPB says the rate reduction depends on the lender, loan type, and market.
What does break-even mean here?
It is the first modeled month when payment savings and the remaining-balance difference exceed the upfront points cost. The estimate assumes fixed rates, equal loan amounts and terms, and monthly principal-and-interest payments; it excludes taxes, other fees, tax effects, and the time value of money.
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