Mortgage Discount Points Calculator

Our Mortgage Discount Points Calculator is based upon the discount points when they are first purchased against a fixed rate mortgage.

The discount points are originally purchased at a 1% rate of the original principal amount.

When a single discount point is bought, the annual interest rate is decreased by 0.25%.

While discount points reduce the monthly payments, close consideration is made to the cost of the discount points.

Our Mortgage Discount Points Calculator shows you the point of break even at which the amount you will be saving on monthly payments has either equaled or exceed the purchase cost of the discount points.

A table is also shown which displays a comparison of the payment schedules.

You are able to save your calculations by clicking on the "Add to table" button which appears below.

Mortgage Details
Mortgage Details
Mortgage Amount Total value of the mortgage
Term in Months Total length of the mortgage (months)
Annual Interest Rate (%) Original interest rate before discount points purchase
Monthly Payment Monthly Payment based on the details above
Discount Points Details
No. of points purchased Total number of points
Cost per 1 point The cost of 1 point at 1% of the mortgage value
Total purchase cost Total cost of the discount points
Revised Interest Rate (%) Interest rate after deducting 0.25% per point
Revised Monthly Payment Monthly Payment based on the Revised Monthly Payment
Monthly Difference The difference between the Original Monthly Payment and the Revised Monthly Payment
Break Even Month Number of months to cover purchase cost

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