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. 

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 ($) 
  • S is the monthly savings ($) 

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

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

BDR = CD / S * 100 = ?