How much of a deduction for a tear?

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Can any one help. I'm trying to understand grading but I need to ask a question. When grading what would be the number of demerit points associated with a small tear? Say approximately 3-5mm in a note? What about a larger tear; i.e. +5mm.

Thanks

This is a really tough question, and it depends on what the note is.
A tear that is not into the design of the note is one thing, but when it goes into the design of the note, this is not desirable.
When I view a note with a tear, unless it is extremely rare, I usually take it down one grade at a minimum.
If the note in question is a common note, and can be obtained easily in a non-torn state, I would say the torn note would have little is any value over face.
Can you share what the note in question is?

The note is a 1954 modified Beattie-Rasminsky (Replacement *W/S). The note is in perfect shape accept it has a small 4mm tear in the boarder at the top. It doesn't go into the color area of the note.
The corners are excellent shape, the color is vibrant, and the embossing is as in new condition. The only fault I see is the small tear.

Small tears do not alter the technical grade except if the note is uncirculated.  An uncirculated note can't have tears, so the best a note with a tear could be is AU.  A circulated note with a tear should have the tear described separately from the technical grade.  Tears affect value negatively, and it's typical for a note with tears to sell more in the range of 50-75% of the value of an untorn note of the same grade.

Large tears are unusual and are normally only seen on low grade notes.