Mortgage Points Calculator
Determine if buying mortgage points (discount points) to lower your interest rate is worth it based on breakeven analysis.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
Points Cost = Points × 1% × Loan; Breakeven = Points Cost / Monthly Savings
Each discount point costs 1% of the loan and typically reduces the rate by 0.25%. Worthwhile if you keep the loan past breakeven.
Frequently Asked Questions
Should I buy mortgage points?
Yes if you plan to stay in the home past the breakeven period (typically 3-7 years) and can afford the upfront cost.