Compare no-points vs points
Use the same loan amount and term for both offers. Enter lender credits as a positive dollar amount; the calculator subtracts them from the upfront points option cost.
| Option | Rate | Monthly P&I | Upfront points/credit | Interest at horizon | Remaining balance | Total interest |
|---|
Horizon result equals monthly payment savings through your sell/refinance horizon minus the net upfront cost of the points or lender-credit option.
Methodology notes
Payment math
Monthly principal and interest payments use the standard fixed-rate amortization formula for the loan amount, term, and note rate.
Break-even
For discount points, break-even is net upfront cost divided by monthly payment savings, rounded up to the next full month.
Horizon cost
Interest and remaining balance are amortized through the selected sell or refinance month. Taxes, deductions, escrow, and investment returns are not modeled.
Results are estimates for educational purposes only and are not financial advice. PlainFigure may earn a commission from partner links, but calculator formulas are independent. See full disclosure.
Mortgage points FAQ
Is one point always 1%?
In most mortgage quotes, one discount point equals 1% of the loan amount. A $400,000 loan with one point costs $4,000 before credits or other fee differences.
Should I use APR instead?
APR helps compare full-term borrowing cost, but points decisions often depend on how long you will keep the loan. The horizon result focuses on that timing.
Can lender credits be better?
Yes, especially if you expect to sell or refinance quickly, need cash for reserves, or the higher-rate payment does not last long enough to erase the credit.