Mortgage Points Break-Even Calculator
Enter cost and savings from comparable loan offers, then supply your own holding months. Fractional months are allowed.
A QUICK WALKTHROUGH
How to use this tool
- Enter a nonnegative upfront cost, monthly savings and currency label.
- Enter 1–20 positive holding periods in months; fractional months are allowed. Optionally enter your current holding period.
- Calculate break-even and the complete gross savings, cost and net comparison; copy or save the frozen report.
Equal cash-flow arithmetic
Break-even = cost / monthly savings; net = monthly savings × months − cost.
Scope and points
Discount points are an upfront closing cost used to obtain a lower rate; one point is 1% of the loan amount. Enter the actual total cost and monthly payment saving yourself; rate reductions vary by lender. This constant, undiscounted model excludes taxes, financing cost of points, changing payments, loan balance differences, sale/refinancing costs and investment returns. It provides comparison arithmetic, not loan advice.
GOOD TO KNOW
Common questions
What if cost or monthly savings is zero?
Zero cost requires no recovery. If both are zero, there is no unique break-even time. A positive cost with zero savings has no finite break-even.