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Land Contract Calculator

A land contract is installment-sale financing where the seller retains legal title until paid off. This calculator prices the monthly payment, balloon amount, and total interest so both parties understand the structure.

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Monthly P&I

$1,346

Full monthly (with servicing)

$1,371

Contract principal

$175,000

Balloon due

$162,888

Total interest to balloon

$100,919

How the math works

A land contract (contract for deed, installment land contract) is a seller-financed purchase where legal title stays with the seller until the contract is fully paid. The buyer holds equitable title and possession, makes payments like a mortgage, and gets the deed at payoff.

Land contracts are faster to enforce than foreclosure in many states (simple eviction if the buyer defaults), which is why sellers sometimes prefer them to a full deed + mortgage. Buyers should record the contract (or a memorandum) to protect their equitable interest.

How to Use

  1. Enter sale price and down payment.
  2. Enter contract rate and amortization period (usually 30 years even with a short balloon).
  3. Enter balloon term — typically 5-10 years.
  4. Add servicing fee if using a third-party servicer.

Frequently Asked Questions

Is a land contract the same as seller financing?

Similar but structurally different. Seller financing deeds the property and takes back a mortgage (same as a bank). Land contract keeps legal title with seller and grants equitable title to buyer. Remedies on default differ by state.

Why use a land contract instead of seller financing?

Faster enforcement on default in many states — eviction or forfeiture rather than foreclosure. Sellers sometimes prefer land contracts for this reason. Buyers must record a memorandum of contract to protect their interest in public records.

Does the buyer get tax benefits?

Generally yes — the buyer is treated as beneficial owner and can deduct mortgage interest and property tax. Seller reports as installment sale. Consult a tax professional for specifics.

What happens if the buyer defaults?

State rules vary. Some states treat it like a mortgage (requiring foreclosure). Others allow fast forfeiture with the seller keeping all prior payments as liquidated damages. This is the key reason sellers use land contracts.

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