Seller Financing Calculator
Run the numbers on your deal — whether you're a seller, buyer, or agent.
How to Use This Calculator
- Choose your role and asset type — seller, buyer, or agent. Each gets tailored results.
- Set the sale price — use the slider for quick estimates or type an exact number.
- Adjust financing terms — down payment, interest rate, loan term, and amortization. Hover the icons for definitions.
- Enter your cost basis — what you originally paid, to estimate capital gains savings.
- Review your results — charts, scenarios, and income projections update instantly.
- Save or email your results — get a branded PDF report to share or keep.
Deal Inputs
Tax Comparison Inputs
Your Deal Summary
Visual Breakdown
Payment Breakdown
How your total payments split between principal, interest, and down payment
Yearly Balance & Income
Remaining balance decreasing as you collect monthly payments each year
Scenario Comparison
See how seller financing stacks up against a traditional cash sale.
Passive Income Breakdown
Deal Tools
Use your calculator results to generate ready-to-use documents. All numbers are pulled from your analysis above.
Negotiation Script
A step-by-step conversation guide for proposing seller financing to the property owner — with your specific deal terms, benefits, and objection responses built in.
Offer Email Template
A professional email proposal presenting your seller financing offer — complete with proposed terms, benefits to the seller, and a clear call to action.
Email me these results
We'll send a PDF breakdown of this deal — including the amortization schedule, tax comparison, and next steps for your asset type.
Ready to structure your deal?
Get standardized documentation, buyer vetting, and ongoing financing transparency — all included.
Calculator FAQ
Common questions about seller financing terms, how this calculator works, and what the numbers mean for your deal.
Seller financing (also called owner financing) is when the seller of an asset acts as the lender. Instead of the buyer getting a bank loan, the buyer makes monthly payments directly to the seller according to agreed-upon terms — sale price, down payment, interest rate, and repayment period.
A balloon payment is a large lump-sum payment due at the end of the loan term. It occurs when the amortization period is longer than the loan term — for example, payments calculated over 30 years but the full remaining balance is due after 10 years. This gives the buyer lower monthly payments while allowing the seller to recover the remaining balance sooner.
The amortization period determines how monthly payments are calculated — it's the theoretical full repayment schedule. The loan term is how long the buyer actually has before the note is due. If the amortization is 30 years but the term is 10 years, the buyer pays based on a 30-year schedule for 10 years, then owes the remaining balance as a balloon payment.
In a traditional sale, the full capital gain is recognized and taxed in the year of sale. With seller financing structured as an installment sale (IRS Section 453), the gain is recognized proportionally as payments are received over the life of the note. This spreads the tax liability across multiple years, potentially keeping you in a lower tax bracket and providing a time-value benefit on the deferred taxes.
Seller-financed deals typically carry interest rates between 5-10%, though this varies by asset type and market conditions. The IRS requires that the rate meets or exceeds the Applicable Federal Rate (AFR) — otherwise, the IRS may impute interest. HonestDeed automatically ensures your deal structure meets AFR requirements.
Cost basis is what you originally paid for the asset, plus qualifying improvements or acquisition costs. It's subtracted from the sale price to determine your capital gain. If you inherited the property, your basis may be the fair market value at the time of inheritance (stepped-up basis).
No. This calculator provides estimates for informational and educational purposes only. Actual results depend on deal-specific factors, state regulations, tax law, and individual financial circumstances. Tax savings estimates are simplified — consult a tax professional for advice specific to your situation. HonestDeed provides IRS-compliant documentation and deal structures but does not provide tax or legal advice.