Cost of Points
$6,000.00
Discount Points Calculator
Find the breakeven point for buying mortgage discount points.
Breakeven Period
61.5 months
New Rate
6.00%
Monthly Savings
$97.55
Original Payment
$1,896.20
How to use the Discount Points Calculator
The Discount Points Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Loan Amount — a dollar amount.
- Rate Without Points — a percentage (enter 6 for 6%).
- Rate Reduction per Point — a percentage (enter 6 for 6%).
- Points Purchased — a number.
- Loan Term (Years) — a number.
Worked example
Using the example values — Loan Amount $300,000.00, Rate Without Points 6.5%, Rate Reduction per Point 0.25%, Points Purchased 2, Loan Term (Years) 30 — the Discount Points Calculator returns a Breakeven Period of 61.5 months. It also reports Cost of Points ($6,000.00), New Rate (6.00%), Monthly Savings ($97.55).
Prefer your own numbers? Change any field above and this recomputes instantly.