Yes the pivot point is rear axle.
As I noted, if you can keep the rear end high vs level vs tail down, the amount of weight removed from the fa will be less vs more as a percentage of hitch weight added.
It's why I only list 200-300 lbs off the fa with 8500 lb springs vs 300-400 with the same truck with 1500 lbs of hitch weight. Same truck with 600-700 lbs of he, only list 60-100 lbs. Using your formula, I should have lost way more off the fa than I have with the 600-700 lbs of hw.
The amount lost is not the same percentage for every lb added. It's 1-5 % for the first 100 lbs depending upon rear springs, wb, rear over hang etc. 900-1000 lbs will be a higher %.possibly more taken off the front and added to the rear than HW added. Make it 1500-2000 lbs of HW added, you had better have a large capacity rear spring rating, or you could be adding 2 lbs of fa wt per lb of HW added! It's not a single 1 lb of fa for 3 lbs of HW as you and others say it is.
This is my experience from 40 years of towing multiples of trailers, with different trucks.
Marty