How to use this calculator
- Enter loan principal, discount points (%), monthly payment without points, monthly payment with points.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Simple undiscounted comparison; tax deductions, early payoff and remaining-balance differences are excluded.
Worked example
With loan principal = 200000, discount points (%) = 1, monthly payment without points = 1500, monthly payment with points = 1450, upfront points cost is approximately 2000.
What the result means
Compare the upfront cost of buying down a mortgage rate with a stated monthly saving.
Common questions
How should I interpret upfront points cost?
Compare the upfront cost of buying down a mortgage rate with a stated monthly saving.
What should I check before using this result?
Simple undiscounted comparison; tax deductions, early payoff and remaining-balance differences are excluded.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: www.consumerfinance.gov — financial method. FinanceMath implements its own calculator.