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Finance Calc Kit
Mortgages

Mortgage Loan Points Calculator

Calculate the cost of mortgage discount points, loan amount, or number of points paid at closing.

Calculation type

Inputs

$

Cost of one point

$3,000.00

How points are calculated

Each mortgage point equals 1% of the loan amount paid upfront to reduce the interest rate.

  1. Given loan amount

    Mortgage loan amount (MLA) = $300,000

  2. Cost of one point

    COOP=MLA100COOP = \frac{MLA}{100}

    Each point equals 1% of the loan amount.

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Understanding mortgage discount points

Mortgage points (also called discount points) are upfront fees paid at closing to lower your interest rate. One point equals 1% of the loan amount. Paying points trades higher closing costs for a lower monthly payment over the life of the loan.

Use this calculator to find the cost of one point, the total cost for multiple points, or work backward from a known closing cost. To see how a lower rate changes your monthly payment, try the mortgage calculator. To compare two rate scenarios, use the mortgage comparison calculator.

Point cost formulas

COOP is the cost of one point, MLA is the mortgage loan amount, and NP is the number of points purchased.

Worked example

On a $300,000 loan, one point costs $3,000 (1% of the loan amount). Purchasing 2 points costs $6,000 upfront. Whether points are worth it depends on how long you keep the loan and how much the rate reduction saves each month.

Frequently asked questions

What is a mortgage point?
A mortgage point is a fee equal to 1% of the loan amount paid at closing. Discount points reduce your interest rate in exchange for higher upfront costs.
How much does one point cost?
Divide the loan amount by 100. On a $300,000 loan, one point costs $3,000. The calculator uses COOP = MLA / 100.
How do I calculate the total cost of multiple points?
Multiply the cost of one point by the number of points. Two points on a $300,000 loan cost $6,000 (COOP × 2).
Are points tax deductible?
Discount points may be deductible in the year paid on a purchase mortgage, subject to IRS rules. Consult a tax professional for your situation.
Are my inputs stored on a server?
No. All calculations run in your browser. The URL updates as you change inputs so you can share your scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.