Mortgage Points Break-Even Calculator
Compare the cost of buying a lower mortgage rate with the monthly principal-and-interest savings.
Mortgage Points Break-Even Calculator estimate
How the estimate works
One point equals 1% of the loan amount. Break-even time divides point cost by monthly principal-and-interest savings.
Worked example
Example: one point on a $400,000 mortgage costs $4,000. Divide that upfront cost by the monthly payment savings to estimate how long you must keep the loan to break even.
Important limitation
Lender pricing is not linear, and points can affect taxes and closing cash. Use the actual loan estimate. Results are estimates only and are not financial, lending, legal, tax, or investment advice.
Assumptions and review
Formula review: July 29, 2026. This tool uses only the editable values shown above and does not pull live rates, prices, balances, or account data.
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Frequently asked questions
How does the mortgage points break-even calculator work?
One point equals 1% of the loan amount. Break-even time divides point cost by monthly principal-and-interest savings.
Is this mortgage points break-even calculator exact?
No. It is a planning estimate based on the values you enter. Actual rates, fees, timing, taxes, and provider rules can change the result.
Can I change the assumptions?
Yes. Every displayed input is editable so you can compare scenarios instead of relying on a hidden default.