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.

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## Buy-Down Rate Formula

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:

- First, determine the divide the cost of discount points ($).
- The divide the cost of discount points ($) is given as: 3,000.

- Next, determine the monthly savings ($).
- The monthly savings ($) is provided as: 4,000.

- 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

Test your knowledge using the equation and check your answer with the calculator.

BDR = CD / S * 100** = ?**