Calculate the Impact of Discount Points

Buying discount points (or mortgage points) means paying extra cash at the time of closing to reduce the interest rate and monthly payments. Another option would be to use that money towards a larger down payments, reducing the loan amount. Which option makes the most sense? Use this calculator to find out how long it will take to recuperate the cost for buying points called the breakeven.


Enter the total amount of the loan. This would be the original amount, before any payments to the principal.


Enter the annual interest rate as a percentage. This is the rate you receive before buying discount points.

Choose the length of the loan term you plan to use.


Choose the number of points to buy. Each point is equal to 1 percent of the loan amount, for instance 2 points on a $100,000 loan would cost $2000.


Enter the annual interest rate for this mortgage with discount points as a percentage.

2 points will require a payment of


You would break even in

105 months

If you plan to move or refinance sooner than the breakeven date, you should consider putting this money towards a larger down payment.

Monthly payment with points:
Monthly payment without points:

These calculations are tools for learning more about the mortgage process and are for educational/estimation purposes only. Calculator results are rounded down to the nearest dollar. Payment shown does not include taxes, insurance, or mortgage insurance (if applicable). This does not constitute an offer or approval of credit. Contact a PrimeLending home loan officer for actual estimates.

For example, a Conventional fixed rate loan with the terms purchase price of $312,500, on a loan term of 360 months, down payment of 20%, and an interest rate of 6.5%, will result in an annual percentage rate of 6.598% with $3,613 in APR fees. Rate pulled 09/02/22, rates change daily. Loans are subject to borrower qualifications, including income, property evaluation, and final credit approval.

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