Calculated result
Enter values and select Calculate.
Points and payment model
One point equals 1% of entered principal. Both entered rates use the same fixed principal and term. The standard amortization formula computes monthly P&I, and upfront cost divided by positive monthly savings gives simple break-even months.
Mortgage boundary
The user enters both rates; the tool never infers a rate reduction from points. It excludes taxes, insurance, APR disclosure, lender eligibility, future refinancing, and recommendations.
Worked example
The editable example above demonstrates the complete formula with visible assumptions. Select Calculate to inspect the resulting values.