Mortgage Points Calculator (Are Discount Points Worth It in 2026?)

Use this Mortgage Points Calculator to estimate whether paying discount points upfront could save you money over the life of your mortgage. Enter your loan amount, repayment term, interest rate with and without points, and the cost of the points to compare monthly payments, estimated break-even time, and potential net savings.

Mortgage discount points are upfront fees paid to a lender in exchange for a lower mortgage interest rate. In the US, one discount point typically costs 1% of the loan amount, although the rate reduction offered varies by lender and loan terms. Paying points increases your upfront costs but may reduce your monthly principal-and-interest payment.

The key question is whether your interest savings will outweigh the upfront cost during the time you keep the mortgage.

Your break-even point estimates how long it takes for the monthly payment savings to recover the cost of the discount points. If the upfront cost is $6,000 and the estimated monthly payment reduction is $100, the simple break-even period is 60 months, or five years.

If you sell your home, refinance, or pay off the mortgage before reaching that point, paying for discount points may not be worthwhile. Keeping the mortgage beyond the break-even period may make points more attractive, depending on your overall costs.

Try different interest rates and point costs to see how the estimated monthly payment and break-even period change. Compare offers using the same loan amount and term, and check the lender’s Loan Estimate to confirm the upfront points, interest rate, and other fees.

You can also use our Mortgage Rate Calculator to explore payment differences and our Mortgage Interest Calculator to estimate interest costs over the repayment term.

Important: This calculator provides a simplified estimate using the difference in scheduled monthly principal-and-interest payments. It does not model the declining loan balance, the time value of money, tax effects, or other differences between loan offers. Its total savings figure is not a complete measure of financial benefit.

Actual discount-point pricing and rate reductions vary by lender, and points may not always be tax-deductible. Review your Loan Estimate and consider how long you expect to keep the mortgage before deciding.