Commercial Real Estate Prepayment Analysis CMBS · Bridge · Mezzanine

Yield Maintenance Calculator

Prepayment penalty on commercial real estate loans

What is yield maintenance? A prepayment penalty that ensures your lender earns the same yield as if your loan ran to maturity — by contrast, defeasance substitutes collateral (US Treasuries) for the loan. Most CMBS, bridge, and mezzanine loans use yield maintenance.

Loan Details

Loan Amount ($)

Original Interest Rate (%)

Loan Term (Months)

Months Already Paid

84 months remaining

Market Reference Rate

Yield maintenance = PV of remaining payments at your loan rate MINUS PV at the current Treasury rate. Higher current rates → lower (or zero) penalty.

Current 10-Year Treasury Yield (%)

Re-conveyance / Legal Fee ($)

Prepayment Analysis

Yield Maintenance

—

penalty amount

Principal Balance

—

at discount rate

Total Prepayment

—

YM + balance

Yield Maintenance vs. Defeasance

Sensitivity Table — YM Penalty by Treasury Rate

Treasury Rate	PV at Treasury	YM Penalty	Total Prepay

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This calculator provides estimates for educational purposes only. Yield maintenance calculations vary by lender and loan agreement. Consult a commercial mortgage broker or legal counsel before making prepayment decisions.