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Advanced Seller Finance Calculator

Estimate seller financing income amounts in a variety of different scenarios. Fine tune how much interest you want to earn and when you want to be repaid. If you like what you see, continue to learn more about seller financing.

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How To Use the Calculator


  • Sale Price: Enter the value of your house, or the amount you would like to sell it for. This amount may represent what you would receive in a traditional sale, before paying agent commissions. Here’s a quick estimate.
  • Down Payment: This is the amount you want to receive upfront. It can range from $0 to whatever portion of the sale price you need to make the deal worthwhile.
  • Interest Rate: Enter the interest rate that you would like to charge for financing the remainder of the sale price (the portion not received as a down payment). The interest rate gives the sale its investment component, which would not be there in a traditional sale.
  • Loan Term: This is the timeframe in which you want the loan to be repaid, and is referred to as the amortization period. Monthly payments during this period include a mix of principal and interest (unless you include an “Interest Only” period). The Loan Term is most commonly used to control the amount of the monthly payment, since there are other ways to control when the loan actually ends (e.g. with the “Balloon” option).
  • Balloon: Selecting this option allows you to input when you want the loan paid off. The balloon cuts off amortization and makes everything due at the time of the balloon. Sellers use a balloon to control the length of time they want income, as well as when the rest of their principal is due.
  • Interest Only: Selecting this option allows you to control the length of time for which you will receive interest only. During this period, there is no principal paydown, which means that the loan amount does not go down. This can be great as an income stream for the seller, while providing the buyer a period of increased affordability.
  • Balloon and Interest Only: Selecting both options allows you to configure a scenario where you only receive interest for some time, and then a mix of principal and interest until the time of the balloon, at which point the remainder of the loan is paid off.
  • Escalating Interest Rate: This is a way to encourage a loan to be paid off without actually requiring it (unlike a balloon). The buyer will be subject to higher and higher interest rates the longer they keep the loan, which is more flexible than a balloon payment. The seller’s income increases over time.
  • Show Amortization Table: Turning this on will show the monthly breakdown of principal and interest as the loan amortizes. This option can be used with any of the others to also show monthly income and remaining balance in more complex scenarios.


  • Seller Financed Loan Amount: The amount that you would be earning intertest on (sale price minus down payment).
  • Monthly Income: An estimate of the amount of monthly income, including principal and interest, that you would receive. It is based on the seller financed loan amount, interest rate, and loan term. For advanced scenarios, you may turn “Show Amortization Table” on to see how monthly income changes over time.
  • Monthly Income During Interest Only: An estimate of the amount of monthly income that you would receive during an “Interest Only” period. This income is the monthly interest due on the loan. Because there is no principal paydown, both the amount owed and the interest payment stay the same during an “Interest Only” period.
  • Monthly Income After Interest Only: An estimate of the amount of monthly income that you would receive after the “Interest Only” period. This amount is higher than the income during the “Interest Only” period because the loan has started amortizing and payments now also include a principal component. Notably, the payments are also higher than if there were no “Interest Only” period, because the same loan amount is being paid off over a shorter period of time.
  • Total Interest Income: An estimate of the total amount of interest you would receive over the life of the loan. This is the amount that is “extra” when you seller finance as compared to selling outright.
  • Balloon Amount: The amount to be paid at the time of the balloon.
  • Total Income from Seller Financing: An estimate of the total amount of principal and interest that you would receive due to seller financing. The principal is the seller financed loan amount, and the interest is the total interest income.
  • Grand Total: This is the total amount received from selling the house, which includes the down payment together with the total income from seller financing.

Benefits of Seller Finance

Our seller finance calculator provides a clear picture of how seller financing (also known as owner financing, a seller carryback, an owner carryback, or a purchase-money mortgage) can benefit you in the long run. If you are willing to wait, you can earn significantly more than selling outright. Keep reading to learn more about seller financing, and contact us if you have any questions. We would be happy to help!

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