Points Break-Even Calculator
Educational calculators — always consult a licensed professional before making financial decisions.
Your loan and points
What you will borrow after the down payment. Points are priced as a share of this figure, so it sets what each point costs.
Ask the lender to quote the same loan both ways on the same day. The gap between the two rates is what the points buy.
The baseline rate your lender is offering.
Each point typically reduces your rate by 0.25%. Your lender will quote this.
Rate reduction 0.5 percentage points
The dollar charge for discount points on the Loan Estimate (section A). This is the upfront cost the monthly saving has to repay.
2 points on this loan
Points pay off only if you keep the loan past the break-even month. Selling or refinancing before then means the points cost you money.
Break-even point
61 months (5.1 yrs)
Stay longer and points save you money
Without Points vs. With Points
30-Year Interest Comparison
The headline break-even counts payment savings only. Set how many years you'll keep the loan to see the net if you sell or refinance, which also counts the lower balance you pay off. Consult a licensed mortgage professional.
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Points Break-Even Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.