Mortgage Points Break-even Calculator
See how long it takes a lower payment to recover the upfront cost of mortgage points.
Verify this calculatorMaintained
See what the result uses—and what it cannot know.
Sumvoro calculates deterministically from the visible inputs. It does not invent lender terms, local rules, market values, medical facts, or professional judgments.
- 1 · InputsCheck every entered value against the latest statement, quote, measurement, or official source.
- 2 · Formula
Point cost = loan principal × points ÷ 100. Break-even months = point cost ÷ monthly payment savings, rounded up. - 3 · SensitivityUse Insights to run a lower and higher case. If the conclusion changes easily, collect better information or leave more margin.
- 4 · ScopeThis tool is maintained and covered by automated calculation tests. Provider timing, rounding, and omitted facts can still change a real-world result.
- Formula release
- 2026.10-r4
- Release date
- October 10, 2026
- Review status
- Maintained
- Source review
- September 12, 2026
Optional readingLearn how this calculator works
How the mortgage points break-even calculator works
Compare paying discount points for a lower mortgage rate using monthly savings, break-even time, and lifetime modeled cost.
Point cost = loan principal × points ÷ 100. Break-even months = point cost ÷ monthly payment savings, rounded up.
Read our calculation methodology and limitations.
Example
One point on a $320,000 mortgage costs $3,200; compare the quoted payment at each rate to see when savings recover that cost.
What affects the result
- One point normally equals 1% of the loan amount.
- The rate reduction per point is set by the lender and market, not by this calculator.
- Selling or refinancing before break-even can eliminate the modeled benefit.
Frequently asked questions
How much is one mortgage point?
One point is generally 1% of the loan principal, so one point on $320,000 costs $3,200.
Do points always save money?
No. Savings depend on the quoted rate reduction and how long you keep the loan.