How it works
Break-even months = upfront point cost ÷ monthly payment saving.
Input definitions
- Loan amount
- Enter the value in the labeled unit.
- Points paid (%)
- Enter the value in the labeled unit.
- Monthly payment without points
- Enter the value in the labeled unit.
- Monthly payment with points
- Enter the value in the labeled unit.
A worked example
- Loan amount
- 300000
- Points paid (%)
- 1
- Monthly payment without points
- 1996
- Monthly payment with points
- 1935
Assumptions & limits
Uses only the values entered. Rates are illustrative inputs, not live quotes, legal rules or personalised advice. Check provider terms, local requirements and measurements before acting.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-19. Content checked against the stated method and examples. Our verification approach.
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Common questions
What if I sell or refinance before break-even?
The payment savings would not recover the entered point cost, before considering taxes or opportunity cost.
How does Mortgage discount points break-even calculate the result?
Break-even months = upfront point cost ÷ monthly payment saving.
What should I verify before using Mortgage discount points break-even?
Uses only the values entered. Rates are illustrative inputs, not live quotes, legal rules or personalised advice. Check provider terms, local requirements and measurements before acting.