Points break-even calculator

How many months of lower payments does it take to earn back what you pay for discount points? Enter the cost of the points and either the two monthly payments from your offers or the loan details and both rates. Every box starts blank.

Enter the cost of the points and your two offers

Cost of the points Dollar amount shown for points in Section A of the Loan Estimate.

Compare usingUse the payments from two offers, or let the calculator figure principal and interest from two rates.Two monthly paymentsLoan amount, term, and two rates

Monthly payment without points Principal and interest from the zero-point offer.

Monthly payment with points Principal and interest from the offer with points.

Calculate break-evenClear

How to estimate the break-even point

• Monthly savings = payment without points − payment with points. In rate mode, both payments are principal and interest from the standard amortization formula.
• Break-even months = cost of points ÷ monthly savings.
• Points cost as a percent of the loan = cost ÷ loan amount; one point equals 1% of the loan amount.Source: CFPB: “How should I use lender credits and points (also called discount points)?” (Ask CFPB #136, last reviewed Oct 19, 2023) · checked Nov 10, 2026

What this leaves out: taxes (points may be deductible, see how the IRS treats points), what the cash could earn if you didn’t spend it on points, mortgage insurance and escrow, and the chance you sell or refinance before break-even. It is education, not a recommendation.

Background: Rate buydowns and discount points.

Guidelines change; confirm with a licensed lender.