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Seller Financing Calculator
This free seller financing calculator shows what a seller financed deal really costs. Enter the sale price, down payment, interest rate, and loan term, plus an optional balloon payment, to see the monthly payment, total interest, and full repayment picture. Buyers can test affordability and sellers can compare offer structures before negotiating. All calculations run in your browser. This is an estimate for planning, not financial advice.
How to use
- Enter the sale price and the buyer's down payment.
- Enter the annual interest rate and the loan term in years.
- Add a balloon payment if one is due at the end, or leave it at zero.
- Click Calculate to see the monthly payment, total interest, and totals.
Worked example
Take a $250,000 sale price with $50,000 down, a 7 percent rate, and a 10 year term with no balloon. The financed amount is $200,000. Amortized over 120 months at 7 percent, the monthly payment is about $2,322.
Over the full term the buyer pays about $278,700 in payments, which means about $78,700 in total interest. Add the down payment and the all in cost is about $328,700 before taxes and insurance.
How the math works
The monthly payment spreads the financed amount over the term with the standard amortization formula: principal times the monthly rate, divided by one minus the discount factor over all payments. With a balloon, the calculator first subtracts the balloon's present value, since that lump sum is paid separately at the end.
A zero rate is simpler: the financed amount minus any balloon is divided evenly by the number of months. Either way, the result is principal and interest only, so remember taxes and insurance sit on top.
Frequently asked questions
What is seller financing?
Seller financing is when the property seller acts as the lender instead of a bank. The buyer makes monthly payments directly to the seller, usually with interest, until the agreed balance is paid off. It is also called owner financing.
How does seller financing differ from a traditional mortgage?
With a traditional mortgage a bank lends the money and sets strict qualification rules. With seller financing the seller sets the terms directly, which can mean faster closings and flexible down payments, but usually at a higher interest rate and with fewer consumer protections.
How does a balloon payment work?
A balloon payment is a large lump sum due at the end of the loan term. Monthly payments are calculated as if the loan ran its full term, and whatever principal is left becomes the balloon. Enter zero if your deal has no balloon.
What inputs do I need for an accurate estimate?
Sale price, down payment, annual interest rate as a percentage, and loan term in years. Add the balloon amount if the deal has one. Double check that the rate is annual, since entering a monthly rate by mistake wildly changes the result.
Does the estimate include taxes and insurance?
No. The calculator covers principal and interest only. Property taxes, insurance, HOA fees, and closing costs are separate and can add hundreds per month, so budget for them on top of the calculated payment.
Is this calculator financial advice?
No. It is a planning estimate based on the numbers you enter. Real deals include taxes, insurance, fees, and legal terms, so talk to a qualified professional before signing anything.
Why is my monthly payment higher than expected?
Check that the interest rate is entered as an annual percentage (for example 7, not 0.07) and that the down payment is less than the sale price. Small typos in these fields change the result a lot.