You know the moment. A refinance or sale is live, someone asks for the yield maintenance hit, and you are back in a spreadsheet rebuilding discount factors and payment counts from scratch. The math is simple, but it is easy to miss a rate, a period, or the floor. The cost of being off is real. A few basis points in the discount rate or a missed floor can move the answer enough to change a go or no-go call. This task cuts that risk and gives you a number you can defend. Underwriting ~5 min to run Calculate Yield Maintenance Penalty on a Loan Vic prompt Use Vic to calculate the yield maintenance penalty on a loan using its terms and prepayment date. Purpose Accurate penalty figures support faster prepayment or refinance decisions. The task reduces analyst time from 30 minutes to about 5 minutes. Inputs Loan Terms Required Prepayment Date Required Discount Spread Optional Minimum Penalty Floor Optional Outputs The penalty amount in dollars and percent of balance, with all inputs listed including balance, contract rate, remaining term, discount rate components, and payment count, plus the floor comparison and any spread sensitivity. Time saved Turns roughly 30 minutes of manual work into about 5 minutes. How it works Give Vic the loan terms and a prepayment date. Include the contract rate, current balance, remaining term, and payment structure. If you have a spread over Treasuries, include it. If the loan has a minimum penalty floor, include that too. Run it like this: Use Vic to calculate the yield maintenance penalty on a loan using its terms and prepayment date. Vic calculates the present value of the remaining payments using a term-matched Treasury plus your spread. It subtracts the outstanding balance to get the raw penalty, then checks that result against the minimum floor. The output is the penalty in dollars and as a percent of the balance. You also get all inputs in one place: balance, contract rate, remaining term, the discount rate components, and the payment count used. Most disagreements on yield maintenance come from inputs, not the formula. Seeing them together makes it easier to catch a bad assumption before it turns into a bad decision. The task shows the floor comparison so you can see whether the calculated present value or the minimum applies. If you provide a spread, the discount rate uses Treasury plus that spread. You can also test sensitivity to the spread and see how the penalty moves, which is often where negotiations end up. In practice, this replaces about half an hour of careful spreadsheet work with a quick run that takes a few minutes. The time savings help, but consistency matters more. Every deal gets the same treatment, the same definitions, and a clear record of inputs. Use it when you are screening a refi, comparing defeasance to yield maintenance, or checking a number from a lender or broker. It is also handy late in a deal when timing shifts and you need to update the penalty for a new date without rebuilding the model. There is no trick here. It is the standard approach: present value of remaining payments discounted at Treasury plus spread, minus the balance, with a floor test. The difference is speed and how easy it is to explain the result when someone asks, "what did you assume?"