Finance category
Mortgage, loan, investing, tax, and money calculators.
Mello Roos Prepay Calculator
Mello-Roos prepay decision hinges on NPV.
Prepay NPV savings
-$6,583
PV of future payments
$25,417
Prepay premium %
0.3%
How the math works
PV of payments = sum of discounted annual assessments. Savings = PV − prepay. Premium = (prepay − PV) / PV.
$3.2k × 12 yr at 7% = $25.4k PV. Prepay $32k = −$6.6k (unfavorable); premium 26%. Keep paying.
How to Use
- Enter annual assessment.
- Enter remaining years.
- Enter prepay buyout amount.
- Enter discount rate %.
- Read prepay NPV savings.
Frequently Asked Questions
What is Mello-Roos?
California Community Facilities District (CFD) bond financing for infrastructure in new communities (schools, roads, parks). Property owners pay additional assessment on tax bill for 20-40 years. Common in new subdivisions, often $2k-$6k/yr on single-family homes.
Prepay decision?
Available if CFD allows. Compare: continuing payment × years (discounted at after-tax opportunity cost) vs lump sum prepay today. If prepay < PV of payments, worth doing. Usually prepay premium 5-15% over pure PV math — factor in.
When worth it?
Sale imminent (buyer pays full Mello-Roos in price). High-income investor with low alternative yield. Short remaining term (3-5 years). Tax advantage of write-off already captured. Generally: longer remaining term + higher discount rate = prefer continuing; short term + low rate = prefer prepay.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Mello Roos Impact Calculator
Mello-Roos community facilities district tax impact on CA property — annual cost and remaining years.
Next calculator
Mello-Roos Calculator
Estimate Mello-Roos (California CFD) assessment on top of property tax for newer developments and master-planned communities.