FreeByte

Discount points calculator

Paying upfront to cut the rate.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
$
1.5%
0.25%
6.5%

Break-even

5 yr 2 mo

Monthly saving

$85.6

With these inputs, break-even comes to 5 yr 2 mo over 30 years. Monthly saving works out to $85.6. The result assumes rate cut per point stays at 0.25%.

Cost of points
$5,250
Saving over the term
$25,566

Over time · by term

What moves the number · Break-even

Input−10%Now+10%
Rate cut per point5 yr 9 mo5 yr 2 mo4 yr 8 mo
Base rate5 yr 4 mo5 yr 2 mo5 yr 0 mo
Term5 yr 4 mo5 yr 2 mo5 yr 0 mo

Solve for an input

Whatmakesequal

Compare scenarios

Save this set of inputs, change something, then save again to compare the outcomes side by side.

Paying upfront to cut the rate.

A worked example

Starting figures

Loan amount
$350,000
Points bought
1.5%
Rate cut per point
0.25%
Base rate
6.5%
Term
30

What it returns

Break-even
5 yr 2 mo
Monthly saving
$85.6
Cost of points
$5,250
Saving over the term
$25,566

How to read the results

With the defaults above, break-even works out at 5 yr 2 mo.

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