Mortgage Points Break-Even Calculator

Calculate break-even months for buying mortgage points from cost and monthly savings.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — How should I use lender credits and points (also called discount points)?

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%
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Points Cost

$3,000.00

Break-Even

40 months

Net Savings Over Time

At 5 years$1,500.00
At 10 years$6,000.00
At 15 years$10,500.00
At 30 years$24,000.00

Use the Mortgage Points Break-Even Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Paying for mortgage points buys you a lower monthly payment, but the upfront cost only pays off if you stay in the loan long enough to recover it. This tool pinpoints that crossover moment. Knowing where your break-even falls is central to deciding whether points are worth it.

The calculation divides what you spend on points by the monthly savings the lower rate delivers. Pay $3,000 for points and trim your payment by $50 a month, and you reach break-even at 60 months, since $3,000 / $50 lands there. Anything past that point is money back in your pocket.

The sooner that crossover arrives, the stronger the case for buying points, particularly if you expect to hold the home for years rather than months. Weigh the full picture too: closing costs and other upfront fees belong in the tally when you judge what the points genuinely cost you.

Example: Should You Buy Points on a $400,000 Mortgage?

  1. 1 Step 1: Loan amount $400,000 on a 30-year fixed. Rate without points: 6.75%. Rate with 1 point: 6.50%. One point costs 1% of the loan, $4,000.
  2. 2 Step 2: Monthly payment at 6.75% = $2,594.39; at 6.50% = $2,528.27. Monthly savings = $66.12. The calculator takes the savings as an input, so work out the two payments first.
  3. 3 Step 3: Enter $400,000, 1 point and $66.12. Break-even = $4,000 / $66.12 = 60.5, which the calculator rounds up to 61 months. Net savings are -$32.80 at 5 years and $3,934.40 at 10 years.
  4. 4 Step 4: If you plan to keep the loan for more than 61 months (about 5 years), buying the point pays off. If you expect to sell or refinance sooner, it doesn't.

Source: CFPB — How should I use lender credits and points (also called discount points)? · Last updated: September 2026

Frequently Asked Questions

How long does it take to break even on mortgage points?
Divide the cost of the points by the monthly payment savings. One point costs 1% of the loan ($3,000 on a $300,000 loan). How much it lowers the rate depends on the lender and the market; if it takes a 30-year loan from 6.5% to 6.25%, the payment drops from $1,896.20 to $1,847.15, saving $49.05 a month. Break-even: $3,000 / $49.05 = 61.2, rounded up to 62 months (about 5 years).
Is buying mortgage points worth it?
Points are worth it if you plan to stay in the home beyond the break-even period. If you expect to sell or refinance within 5 years, points are usually a bad deal. Also consider the opportunity cost of the upfront cash spent on points.
How many mortgage points should I buy?
Most borrowers benefit from buying 0-1 points. Beyond 1-2 points, the rate reduction per point diminishes. Calculate the break-even for each additional point. If break-even exceeds your expected time in the home, do not buy that point.

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