Discount Points Break-Even Calculator
Paying points buys down your rate — but only pays off if you keep the loan long enough. Enter the buydown you've been offered and see the exact month it starts saving you money.
One point = 1% of the loan amount, paid at closing. Rates are your estimates — this calculator publishes no rates.
Break-even month
Month 24
Sell or refinance before then and the points cost you money. Keep the loan longer and they save you $157/month.
- Points cost (at closing)
- $3,800
- Monthly payment savings
- $157
- Savings after 7 years (net)
- $9,355
Important: All calculations on this site are estimates for educational purposes only and do not constitute a loan offer, approval, or commitment to lend. Your actual rate, payment, and terms depend on credit approval and will be provided by your loan officer.
How this works
- Break-even = points cost ÷ monthly savings. It's the number of months you must keep the loan (without refinancing) for the buydown to pay for itself.
- The 7-year net savings line matters because the average homeowner sells or refinances within about 7 years — if break-even is past that, points are usually a bad bet.
- An alternative: ask the seller for a closing-cost credit instead of paying for points yourself. Same dollars, different pocket.
Want me to compare your buydown quote against a no-points option? Send me the numbers.