Enter the divide the cost of discount points ($) and the monthly savings ($) into the Buy-Down Rate Calculator. The calculator will evaluate the Buy-Down Rate.

The following two example problems outline the steps and information needed to calculate the Buy-Down Rate.

BDR = CD / S * 100
• Where BDR is the Buy-Down Rate (%)
• CD is the divide the cost of discount points ($) • S is the monthly savings ($)

To calculate the buy-down rate, divide the cost of discount points by the monthly savings, then multiply by 100.

## How to Calculate Buy-Down Rate?

The following example problems outline how to calculate Buy-Down Rate.

Example Problem #1:

1. First, determine the divide the cost of discount points ($). • The divide the cost of discount points ($) is given as: 3,000.
2. Next, determine the monthly savings ($). • The monthly savings ($) is provided as: 4,000.
3. Finally, calculate the Buy-Down Rate using the equation above:

BDR = CD / S * 100

The values provided above are inserted into the equation below and computed.

BDR = 3,000 / 4,000 * 100 = 75.00 (%)

Example Problem #2:

For this problem, the variables required are provided below:

divide the cost of discount points ($) = 100 monthly savings ($) = 200