Finance category
Mortgage, loan, investing, tax, and money calculators.
Yield Maintenance Breakage Calculator
YM protects lender's yield on prepayment. This calculator estimates breakage fee.
YM breakage
$505,948
Rate spread (bps)
225
Simple PV estimate
$562,500
How the math works
YM = PV of (note − treasury) × balance × remaining months, discounted at treasury.
Every lender uses slightly different YM formula. Request quote 30 days before prepay to avoid surprises. In low-rate environments, YM can exceed 10% of loan balance — defeasance may be cheaper.
How to Use
- Enter loan balance.
- Enter note rate.
- Enter treasury at prepayment.
- Enter remaining months.
- Read YM breakage.
Frequently Asked Questions
How calculated?
PV of (note rate − treasury) × balance, discounted at treasury. Makes lender whole if they reinvest at treasury. Exact formula varies by lender.
When is it zero?
When treasury > note rate at prepay (higher rate environment). Rising rates = shrinking YM. Falling rates = ballooning YM (expensive prepay).
Alternatives?
Defeasance (substitute treasuries for mortgage). Open window in late years. Some loans allow prepay at par last 6-12 months. Plan exits around structure.
How often should I rerun this?
Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.
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
Wraparound Cash Flow Calculator
Wraparound mortgage cash flow — underlying loan payment, wrap payment to seller, and buyer's net spread to operate the property.
Next calculator
Yield Maintenance Calculator
Calculate commercial-loan yield maintenance prepayment penalty — treasury spread, remaining term, and make-whole payment owed at prepay.