Real Estate Calculators

Mortgage Points Breakeven Calculator

Enter your loan amount, rate, and the points you're considering to calculate the breakeven point in months.

Points cost

$3,000

Monthly savings

$49.05

61.2 months

New rate: 6.250%

1 point costs 1% of the loan amount, paid upfront to lower your rate. Breakeven is how long it takes the monthly payment savings to recoup that upfront cost — if you'll sell or refinance sooner than that, points usually aren't worth it.

How to use this tool

  1. 1Enter your loan amount and original interest rate.
  2. 2Enter the number of points and the rate reduction per point.
  3. 3Enter your loan term.
  4. 4See the breakeven point in months.

Frequently asked questions

When are points worth buying?+

Generally when you plan to keep the loan (without selling or refinancing) longer than the breakeven period — otherwise you likely won't recoup the upfront cost.