Finance category
Mortgage, loan, investing, tax, and money calculators.
Yield Maintenance Premium Calculator
Yield maintenance protects lenders when a loan is paid off early. This calculator sizes the premium from remaining interest and reinvestment rate.
Yield maintenance premium
$302,969
Total payoff
$5,302,969
Premium % of balance
6.06%
How the math works
Premium = present value of (note rate − reinvest rate) × balance × remaining term. When Treasury ≥ note rate, premium is zero.
Yield maintenance is punitive early in the term and softens near maturity. Stage refis inside the open-prepay window or defease to Treasury collateral when the premium would exceed the interest savings from refinancing.
How to Use
- Enter current loan balance.
- Enter the note rate.
- Enter Treasury/reinvestment rate.
- Enter months remaining to maturity.
- Read the premium and total payoff.
Frequently Asked Questions
What is yield maintenance?
A prepayment fee that makes the lender whole by paying the present value of interest they would have earned versus reinvesting at the Treasury rate through maturity.
When does it apply?
Fixed-rate CMBS, life company, and agency loans commonly use yield maintenance, especially during the first 80-90% of term. Expect a small yield maintenance window near maturity where open prepayment is allowed.
Premium size?
Higher when note rate exceeds Treasury and many months remain. Zero when Treasury matches or exceeds note rate. Typical range 3-12% of balance on mid-term prepayments.
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
Yield Maintenance Calculator
Calculate commercial-loan yield maintenance prepayment penalty — treasury spread, remaining term, and make-whole payment owed at prepay.
Next calculator
Yield on Cost Calculator
Development yield on cost — stabilized NOI ÷ total project cost, developer spread vs market cap, and exit profit.