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Mortgage points calculator

Work out how many months of lower payments would cover an extra upfront mortgage cost.

Your figures

Fictional starting values. Change them to match your written offers.

SIMPLE BREAK-EVEN

50 months

Payment reduction over 36 months
$2,160
After the extra upfront cost
$-840
See the calculation

Formula: $3,000 ÷ $60 per month. The first complete month at or beyond break-even is 50.

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Payment reductions only; this is not a full loan-cost comparison.

How the calculation works & what it leaves out

What this calculation means

The simple break-even is extra upfront cost divided by monthly payment reduction. With fictional inputs of $3,000 and $60 monthly, the result is 50 months. At 36 months the reduction totals $2,160; at 60 months it totals $3,600. If no JavaScript is available, you can use this formula directly.

What it leaves out

This shortcut does not model principal-balance differences, refinancing, sale, taxes, time value of money, or other costs. It assumes the monthly difference remains constant. It does not recommend paying points or assess affordability. Use comparable written offers and confirm the figures with your lender or appropriate adviser.

CFPB explanation of points and credits ↗
Read the full worked guide ↗

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