Premium bid break-even calculator

See the highest premium that still leaves room for your goal.

A premium can consume your return before a certificate ever redeems. Use conservative assumptions and include every cost you expect to carry.

Your assumptions

Use cautious inputs. You can change every number.

Certificate or tax amount ($)Annual interest or penalty rate (%)Expected days until redemptionCosts to reserve ($)Minimum annual return wanted (%)

Confirm the current sale terms first. A calculator cannot verify the sale, clear title, value a property, or predict redemption.

Illustrative result

maximum premium before your target is reduced

Gross interest or penalty: $450
Costs reserved: $150
Target annual return: 12.0%
Illustrative premium limit: $0

Set a maximum bid next →

1. Verify the structure.
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.

3. Keep a hard stop.
If the deal only works in the best case, lower the bid or walk away.

Premium Bid Break-Even FAQ

What is a premium bid?+

In premium-bid states the certificate goes to whoever pays the most above the tax amount. The premium is usually not returned with interest on redemption, so every dollar of premium reduces your effective yield. The calculator shows the most you can pay before your target return disappears.

How is the break-even premium calculated?+

It takes the interest you expect the certificate to earn over your holding period, subtracts your costs and the return you want to keep, and reports the premium that would leave you exactly at your target. Bid below that number, not at it.

Does the premium earn interest?+

In most premium-bid states it does not, and in some it is forfeited outright. Check the statute cited on the county's page before you bid, and treat the premium as a cost in the calculator.