Seller Financing Calculator
Calculate monthly payments, total interest, and total cost for a seller-financed loan. Enter the loan amount, interest rate, and term to get started.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Seller Financing Calculator
- Enter Loan Amount ($): The total amount the seller is financing (e.g., $200,000). Must be a positive number.
- Enter Annual Interest Rate (%): The yearly interest rate as a percentage (e.g., 5.5 for 5.5%).
- Enter Loan Term (Years): The length of the loan in years (1 to 50).
- Enter Down Payment ($) (optional): Any upfront payment to reduce the loan amount. Leave blank or enter 0 if none.
- Click Calculate to see results.
Results:
- Monthly Payment: Fixed payment due each month.
- Total Interest: Total interest paid over the loan term.
- Total Cost: Principal + total interest (total amount paid).
Note: All monetary values are in US dollars ($). If the down payment equals or exceeds the loan amount, the calculator shows $0.00 and explains no financing is needed. The formula used is the standard amortization formula for fixed-rate loans.
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Frequently Asked Questions
Seller financing is a real estate transaction where the seller provides a loan to the buyer to cover part or all of the purchase price, instead of the buyer obtaining a mortgage from a bank.
The monthly payment is calculated using the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate, and n is the number of monthly payments.
Yes, you can enter a down payment amount. The loan principal will be reduced by the down payment, resulting in lower monthly payments and total interest.