Penalty versus interest calculator
Compare a one-time penalty with interest that accrues over time.
Some tax-sale systems use a flat penalty while others accrue interest. This comparison only illustrates the assumptions you enter; confirm the current county rules before using it for a bid.
Your assumptions
Use cautious inputs. You can change every number.
Confirm the current sale terms first. A calculator cannot verify the sale, clear title, value a property, or predict redemption.
Illustrative result
-$200
more from the interest assumption
- One-time penalty
- $250
- One year of interest
- $450
- Difference
- $200
- Costs not included
- $150
1. Verify the structure.
Use the correct tool only after confirming whether the sale uses a bid-down rate, premium, interest, or penalty.
Use the correct tool only after confirming whether the sale uses a bid-down rate, premium, interest, or penalty.
2. Reserve real costs.
Include registration, recording, research, later taxes, notices, legal guidance, and contingency cash.
Include registration, recording, research, later taxes, notices, legal guidance, and contingency cash.
3. Keep a hard stop.
If the deal only works in the best case, lower the bid or walk away.
If the deal only works in the best case, lower the bid or walk away.