Assumable Loan Value Calculator

Assumable loans command pricing premium. This calculator sizes the value.

Loan balance

Assumable rate

Market rate

Remaining years

Seller premium share %

Seller premium captured

$1,377,000

Total value created

$2,295,000

Buyer benefit

$918,000

How the math works

Value created ≈ balance × rate delta × remaining years × PV factor (0.85). Seller captures share × value.

Assumable loan value is meaningful but hard to fully capture at sale. Most deals split the NPV 60/40 to seller in a hot market, 40/60 in a weak market. Price the premium into the listing at LOI — buyers will negotiate it harder once it's in diligence.

How to Use

Enter assumable loan balance.
Enter assumable rate %.
Enter market rate %.
Enter remaining term years.
Enter premium share seller captures %.
Read value created and seller premium.

Frequently Asked Questions

Who captures premium?

Negotiation point. Strong seller market: seller captures 80-95% (premium added to price). Balanced market: 50/50 split typical. Buyer's market: buyer captures 80-95% (smaller premium). Informed sellers negotiate from NPV math, not hope.

Present value calculation?

NPV of interest savings over remaining term = (note rate − market rate) × balance × remaining years, discounted at market rate. Below-market 4% on $10M for 5 years when market is 7% = roughly $1.25M present value.

Transaction friction?

Assumption fees 0.5-1.5% of balance. Legal + servicer fees $20-80k. 60-120 day approval process. New reserves. Friction eats 1-3% of captured value. Plan well in advance — assumption timeline affects closing.