Seller Financing Calculator
Enter the sale price, down payment, interest rate and term to see the monthly payment and total cost of an owner-financed (seller-financed) deal.
In a seller-financed sale, the seller acts as the bank: the buyer pays a down payment and then makes monthly payments to the seller, with interest, over an agreed term. This calculator uses the standard amortized-loan formula, the same math a mortgage uses.
How seller financing payments are calculated
The amount financed is the price minus the down payment. That's spread over the term with interest using the amortization formula.
Amount financed = Price − Down payment
Monthly payment = P × i × (1 + i)n ÷ ((1 + i)n − 1)
where i = monthly rate, n = number of months
Monthly payment = P × i × (1 + i)n ÷ ((1 + i)n − 1)
where i = monthly rate, n = number of months
| Term | Meaning |
|---|---|
| Amount financed | The loan the seller carries |
| Interest rate | Annual rate agreed with the seller |
| Term | Years to repay (a balloon may shorten this) |
Worked example
A 300,000 property with 60,000 down at 7% over 30 years:
| Amount financed = 300,000 − 60,000 | 240,000 |
| Monthly payment | ≈ 1,596.73 |
| Total interest over 30 years | ≈ 334,821 |
Frequently asked questions
What is seller financing?
The seller lends the buyer the purchase price (minus any down payment) instead of a bank. The buyer repays the seller monthly with interest, usually secured by the property.
What is a balloon payment?
Many seller-financed notes amortize over a long term but require the remaining balance to be paid in full after a few years — that lump sum is the balloon. This calculator shows the fully-amortized schedule.
Is seller financing a good idea?
It can help buyers who don't qualify for a mortgage and give sellers steady income, but both sides take on risk. Have a real estate attorney draft the note.
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Estimates for general information only, excluding taxes, insurance and fees. Not financial or legal advice.