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Mortgage Points Calculator

Estimate the upfront cost of mortgage points and how they may change a monthly payment.

Updated April 11, 2026
Free online tool
Planning and research use

Why this page exists

Buying mortgage points can lower the rate, but the value depends on how much the upfront cost saves over time. This calculator helps compare the point cost, the adjusted rate, the original payment, and the lower payment so borrowers can decide whether the tradeoff looks worthwhile.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Mortgage points calculator

Estimate the upfront cost of mortgage points and how a lower rate could change the monthly payment.

Result

$2,275.44

Estimated mortgage points cost, adjusted rate, and monthly payment change based on the assumptions entered.

Estimated new monthly payment$2,275.44

Upfront cost of points$3,600.00

Original monthly payment$2,334.95

Monthly savings$59.51

1.000 point on a $360,000 loan costs about $3,600.00 upfront.
Reducing the rate from 6.75% to about 6.50% changes the monthly payment by roughly $59.51.
At that savings pace, the upfront point cost would be recovered in about 5 years 0.49580031786133105 months if the loan is kept long enough.

This is a planning estimate. Lenders price points differently, and the actual rate reduction per point can vary by loan, market, and credit profile.

Planning note

Last updated April 11, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter the loan amount, current mortgage rate, and loan term.

Add the number of points and the expected rate reduction per point.

The calculator estimates the upfront point cost, the new rate, the original payment, the new payment, and the monthly savings.

Understanding your result

Points are easiest to judge when they are tied to both the upfront cash required and the monthly savings created. A smaller payment only helps if the borrower keeps the loan long enough to recover the cost.

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Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Compare paying points or not

Run the same loan once with points and once without them to see how much payment change the cost is buying.

Estimate break-even pressure

Use the monthly savings and point cost together to judge whether the upfront cash still makes sense.

Stress-test a smaller rate reduction

Change the rate reduction per point to see how much lender pricing assumptions affect the value of points.

FAQ

Common questions

How much does one mortgage point cost?

One point usually equals 1% of the loan amount, so the upfront cost rises directly with the loan size.

Does one point always reduce the rate by the same amount?

No. Lender pricing varies, which is why this calculator lets you enter the expected rate reduction per point instead of assuming one fixed rule.

How do I know if points are worth it?

The most practical check is whether the monthly savings will recover the upfront cost before you sell, refinance, or otherwise move on from the loan.

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Keep comparing

Use these related tools to compare nearby scenarios, check a second estimate, or keep narrowing down the right decision.

Home ToolsUpdated April 11, 2026