Seller Financing Calculator
Work out the buyer's monthly payment, the balloon due and the seller's total interest on an owner-financed property sale, with an amortization schedule. Enter the price, the down payment, the rate, the amortization and an optional balloon year, and see what the seller collects in interest and in total.
Your numbers
Fixed, as agreed in the note.
Sets the payment.
Optional. Blank or 0 for none.
Buyer's monthly payment (principal and interest)
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- Balloon due
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- Amount the seller finances
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- Down payment (0.0% of the price)
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- Interest the seller earns over 30 years
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- Total the seller receives (down + payments + balloon)
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- Number of payments
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An estimate at a fixed rate from the numbers you typed, with payments on schedule. Not financial, tax or legal advice: have a real estate attorney draw up and review the note.
The calculation runs in your browser and ParrotNotes does not store your numbers. They sit in the page address so you can bookmark or share the result.
How the payment and the balloon are worked out
The note is the sale price minus the down payment. The buyer's level payment amortizes the note over the amortization period at the agreed rate: payment = note × r ÷ (1 − (1 + r)^−n), r = rate ÷ payments a year, n = years × payments a year. Each payment the interest is the balance × r; the rest repays principal. If a balloon year is set, whatever is still owed after that many years is due in one payment.
Worked example: a $360,000 home sold with 10% down ($36,000), $324,000 carried by the seller at 7% on a 30-year amortization with a 5-year balloon. The buyer pays $2,155.58 a month. After 60 payments, $304,986.35 is still owed and due as the balloon.
What the seller receives
Total the seller receives = down payment + every regular payment + the balloon. On the example that is $36,000 + $129,334.81 + $304,986.35 = $470,321.16, of which $110,321.16 is interest. The year-by-year schedule shows how each year's payments split between interest and principal, and the balance left; download it as a CSV for the deal file.
A shorter balloon gets the seller's money back sooner but leaves the buyer a bigger single payment to refinance. A larger down payment lowers both the payment and the balloon. Change one input at a time and compare.
What this calculator does not do
It assumes a fixed rate, interest on rate ÷ payments a year, and every payment on time. Late fees, prepayment, property taxes and insurance escrow, servicing costs, closing costs and the tax side of an installment sale are left out. It does not judge whether the buyer can repay.
For owner financing of a home, federal rules can apply: Regulation Z, 12 CFR 1026.36(a)(4) and (a)(5), sets the conditions, such as how many properties a seller finances in 12 months and how the note amortizes and adjusts, under which a seller is not treated as a loan originator, so talk to a real estate attorney before you agree terms.
Sources, read on 2026-10-27:
- CFPB, What is a balloon payment? When is one allowed?
- OCC, Comptroller's Handbook: Commercial Real Estate Lending, version 2.0 (March 2022): "Amortization" and footnote 48, p. 40; glossary, "Balloon payment"
- CFPB, Regulation Z, 12 CFR 1026.36, Prohibited acts or practices and certain requirements for credit secured by a dwelling: (a)(4) and (a)(5), seller financers
Comparing it with a bank loan? The mortgage points calculator shows what buying down the rate costs and when it pays off, and the home sale proceeds calculator shows the seller's net from a cash sale.
More for agents and investors: Sales negotiation skills across the table, Tips for new real estate agents, How commercial real estate brokers document tours and client calls.
The terms are agreed on the negotiation call
Price, down payment, rate, balloon date and who pays what are settled on the negotiation call. Record it in ParrotNotes and get a structured note, a summary and the action items, so the agreed terms are in the note for the attorney. Free for 100 minutes of recording a month.
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