Owner Financing Calculator

The Owner Financing Calculator helps users estimate loan details, including monthly payments, total interest, and optional balloon payments, based on property price, down payment, interest rate, and loan term.

Use Our Owner Financing Calculator

How to Use the Owner Financing Calculator

The Owner Financing Calculator is designed to help you compute the financials involved in an owner financing scenario. Follow these steps to effectively use the calculator and understand the results.

Step 1: Input the Property Price

  • Property Price ($): Enter the total price of the property in US dollars. This is a required field and must be at least $1,000.

Step 2: Input the Down Payment

  • Down Payment ($): Enter the down payment amount in US dollars. This is a required field and should be a non-negative value.

Step 3: Input the Interest Rate

  • Annual Interest Rate (%): Enter the annual interest rate as a percentage. This is a required field and should be between 0.01% and 100%, with a precision of two decimal places.

Step 4: Specify the Loan Term

  • Loan Term (Years): Enter the number of years over which the loan will be repaid. This is a required field and must be between 1 and 30 years.

Step 5: Decide on Including a Balloon Payment

  • Include Balloon Payment?: Select ‘Yes’ or ‘No’ to specify whether a balloon payment is part of the loan agreement. This is a required field.
  • If ‘Yes’, specify when the balloon payment is due:
    • Balloon Payment Due (Years): Enter the year when the balloon payment will be due. This field is required only if a balloon payment is included and should be between 1 and 30 years.

Understanding the Results

Once you input all the required data, the calculator will compute and display the following results:

  • Loan Amount: The calculated amount you are financing, which is the property price minus the down payment.
  • Monthly Payment: The amount you need to pay each month, calculated using the loan amount, interest rate, and loan term.
  • Total of All Payments: The sum of all monthly payments over the duration of the loan term.
  • Total Interest: The total interest paid over the loan term, which is the total of all payments minus the loan amount.
  • Balloon Payment Amount: If applicable, this is the amount of the balloon payment due at the specified year.
  • Annual Percentage Rate (APR): The effective annual interest rate, shown as a percentage.

Use these results to understand the financial implications of your owner financing scenario. Adjust the input values as needed to explore different financing arrangements.