Mortgage Points Calculator

About this calculator

This calculator finds the upfront cost of mortgage discount points — cost = loan amount × points% — where each point typically costs 1% of the loan and, in exchange, buys down the interest rate by roughly 0.25%, though the exact trade varies by lender. Paying points shifts cost from the life of the loan (higher rate, more interest over time) into an upfront lump sum at closing (lower rate, less interest over time).

Homebuyers use this to run a break-even analysis — how many months of lower payments it takes to recoup the upfront cost — before deciding whether buying points makes sense given how long they expect to keep the loan. Mortgage brokers and loan officers use it to present rate options clearly to clients, and financial advisors use it when comparing a lower-rate, points-paid loan against a no-points loan with a higher rate.