Mortgage Points Break-Even Calculator

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

Our Mortgage Points Break-Even Calculator helps you determine how long it will take to recoup the cost of buying mortgage points through lower monthly payments. With 2026 mortgage rates projected to hover around 6.5-7.0% for a 30-year fixed, understanding your break-even point is crucial for smart financial decisions.

The calculator works by dividing the total cost of the mortgage points by the monthly savings achieved from a lower interest rate. For example, if you pay $3,000 for points and save $50 per month, your break-even point is 60 months ($3,000 / $50).

Remember that a shorter break-even period generally makes buying points more attractive, especially if you plan to stay in your home for a long time. A common mistake is not considering closing costs and other upfront fees when evaluating the true cost of the mortgage points.

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

  1. 1 Step 1: Input Loan Amount: $400,000. Current Interest Rate without points: 6.75%. Interest Rate with 1 point: 6.50%. Cost of 1 point (1% of loan amount): $4,000.
  2. 2 Step 2: Calculate Monthly Payment (without points) = $2,600.00. Calculate Monthly Payment (with 1 point) = $2,528.00. Calculate Monthly Savings = $72.00. Calculate Break-Even Months = $4,000 / $72.00 = 55.56 months.
  3. 3 Step 3: In this scenario, your break-even point for buying one mortgage point is approximately 56 months.
  4. 4 Step 4: If you plan to live in the home for more than 56 months, buying the point would be financially beneficial. If you anticipate selling sooner, it might not be worth the upfront cost.

Source: CFPB — Owning a Home · Last updated: April 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 (1% of the loan, e.g., $3,000 on a $300,000 loan) typically lowers the rate by 0.25%, saving about $45/month. Break-even: $3,000 / $45 = 67 months (about 5.5 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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