Follow the default numbers.
With loan amount of $400,000, the model gives payment-only break-even: 31 months.
The formula is break-even months = upfront cost ÷ monthly savings. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Break-even follows the monthly savings
The cost is loan principal times discount points plus incremental fees. Compare the quoted payments at the same principal and term, then divide cost by monthly savings for simple break-even months. If the rate does not improve, the calculation reports no payment-based break-even rather than dividing by zero.
Hold period determines whether you reach it
Selling or refinancing before break-even can leave less payment savings than the upfront cost. The hold-period result subtracts cost from accumulated savings. This comparison does not model tax deductions, investment opportunity cost, early principal-balance differences or a changed future rate. They can alter the fuller economics.
Compare actual Loan Estimates
A point is not a standard-sized rate reduction. Different lenders can price the same loan differently. Use written quotes and distinguish discount points from origination fees. If the seller pays the points, their contribution still reduces seller proceeds even though it reduces the buyer’s upfront burden. Confirm concession limits before including it in a net sheet.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.