Prepayment Penalty Calculator
Prepayment Penalty: a planned Super Calculator tool. Covers balance (currency). Stub page: the tool, its formula and a worked example are not published yet.
Prepayment Penalty Calculator is a planned calculator in the finance section of Super Calculator, covering other lending.
What this calculator will compute
Inputs: balance (currency), note rate (%), remaining term (months), penalty structure, treasury rate (%) and step-down schedule.
Outputs: penalty amount (currency), penalty as a percentage of balance (%), net benefit of refinancing after penalty (currency) and month the penalty expires.
Formula, recorded as scope and not yet verified against a primary source: Three common structures: a percentage of the balance, a fixed number of months of interest, and yield maintenance which pays the lender the present value of lost interest discounted at a treasury rate. Defeasance substitutes securities for the collateral and is priced separately.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.