Exit Fee Reimbursement Calculator

Exit fees often have rebate provisions for early action.

Loan balance

Exit fee %

Months held

Full term months

Rebate % (of exit fee)

Net exit fee

$175,000

Gross exit fee

$200,000

Rebate amount

$25,000

How the math works

Gross fee = balance × exit %. Rebate = gross × rebate % × (1 − months held ratio).

$20M × 1% = $200k. $200k × 25% × (1 − 0.5) = $25k rebate. $175k net exit fee.

How to Use

Enter loan balance.
Enter exit fee %.
Enter months held.
Enter full-term months.
Enter rebate %.
Read net exit fee.

Frequently Asked Questions

What is an exit fee?

Fee paid to lender at loan payoff, typically 0.25-1% of loan balance. Common on bridge, mezz, and some commercial loans. Compensates lender for loan origination (recovered over time) and some for exit option cost. Different from prepayment penalty (punitive charge for early payoff). Exit fee is expected revenue; prepayment penalty is yield protection.

When is rebate available?

Some exit fees include early-payoff rebate: pay off in year 1 and get 50-75% rebate, year 2 = 25-50% rebate. Encourages early refinance when favorable. Most bridge loan exit fees (50-100 bps) are non-rebatable. Mezz exit fees (1-2%) sometimes rebate. Commercial bank construction loans sometimes rebate. Read the loan document — rebate provisions often buried.

Exit fee negotiation?

Negotiate during loan commitment: (1) reduced exit fee (bridge: 0.5% vs 1%), (2) sliding scale based on hold period, (3) waiver of exit fee if refinancing with same lender, (4) waiver in sale to affiliate or 1031 exchange. Each saves 25-100 bps of loan balance. Institutional sponsors negotiate vigorously; small sponsors often accept first offer. $50-500k worth negotiating.

How to model?

Model base exit fee + expected rebate + effective cost of exit. Compare across lender proposals at same spread (accounting for exit fees, lets you compare apples-to-apples). Some lenders have higher stated rate but no exit fee; others lower rate with exit fee. Total cost over expected hold may favor one or other. Institutional debt advisors run this analysis; amateur sponsors skip it and overpay.