The Seller Finance Calculator helps users determine the loan amount, monthly payment, balloon payment amount, total interest, and total payment for a seller-financed property transaction based on user inputs for property price, down payment, interest rate, loan term, and balloon payment options.
Seller Finance Calculator
Use Our Seller Finance Calculator
How to Use the Seller Finance Calculator
This guide will walk you through the process of using the Seller Finance Calculator to estimate monthly payments, loan amount, and other financial details associated with seller financing.
Step 1: Gather Required Information
Before using the calculator, ensure you have the following information ready:
- The property’s sale price
- The amount you plan to use as a down payment
- The annual interest rate you’re considering
- The term of the loan in years
- If applicable, whether you will have a balloon payment and the duration after which it will occur
Step 2: Enter Property Sale Price
Begin by entering the Property Sale Price ($). This is the total price for the property you intend to purchase. Ensure that the value is at least $1,000 as required by the validation rule.
Step 3: Input Down Payment
Next, input the Down Payment ($). This is the upfront amount you intend to pay. This value must be a non-negative number.
Step 4: Specify Annual Interest Rate
Enter the Annual Interest Rate (%). The interest rate must be between 0.1% and 30%. Make sure it’s a realistic expectation of the market rates.
Step 5: Define Loan Term
Provide the Loan Term (Years). This is the duration in years over which the loan will be repaid. It needs to be a value between 1 and 30 years.
Step 6: Choose Balloon Payment Option
Select whether you’ll have a Balloon Payment. Use the options provided to choose “Yes” or “No”. If you choose “Yes”, prepare to enter the specific details in the next step.
Step 7: Enter Balloon Payment Details (If Applicable)
If you opted for a balloon payment, input the Balloon Payment After (Years). This indicates after how many years the balloon payment will occur and should be between 1 and 30 years.
Step 8: Calculate Results
Once all fields are filled out accurately, the calculator will compute various results including:
- Loan Amount: The financed amount after the down payment is subtracted from the property price.
- Monthly Payment: The estimated amount to be paid monthly.
- Balloon Payment Amount: If applicable, the amount to be paid at the end of the balloon period.
- Total Interest: The total interest paid over the loan period.
- Total Payment: The overall payment including principal and interest by the end of the loan term or balloon period.
Review these results to understand the financing implications and make informed decisions about your seller financing agreement.