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 = ?
