Finance category
Mortgage, loan, investing, tax, and money calculators.
Seller Carry Calculator
Structure a seller-financed real estate deal. Model the carry-back note from sale price, down payment, interest rate, amortization, and an optional balloon. See the buyer's monthly payment, the balloon due, and the seller's cash at closing.
Sale and down payment
15.0% of sale price
Note terms
Set 0 for no balloon — fully amortized to end of term.
Seller carryback note amount
$382,500
85.0% LTV
Monthly payment
$2,674
amortized
Balloon due
$361,912
at end of balloon term
Seller cash at closing
$64,000
down payment less closing costs
Seller financing summary
Note terms are inside typical seller-carry ranges. Check state usury laws on the note rate and consult a real estate attorney to draft the promissory note and deed of trust properly.
Amortized payment at this rate/term
$2,674
Interest-only payment
$2,391
Total interest to balloon
$139,881
Annual note income to seller
$32,094
gross payments collected per year
Down payment %
15.00%
LTV
85.00%
Seller financing is a legal agreement secured by a promissory note and deed of trust or mortgage. Use an experienced real estate attorney. Dodd-Frank and state usury rules limit how many seller-financed deals you can do per year and cap acceptable rates.
How to Use
- Enter sale price and the buyer's down payment. The remainder becomes the seller carryback note.
- Set the note rate. Seller-carry rates typically run one to three points above prevailing conventional mortgage rates to compensate for risk.
- Set the amortization in years — 30-year amortization is common even with a short balloon so the buyer's payment stays affordable.
- Set the balloon term. A 5- or 7-year balloon gives the buyer time to season credit and refinance into a traditional mortgage.
- Choose amortized or interest-only payments and enter seller-side closing costs so the seller's cash at closing reflects reality.
Frequently Asked Questions
What is a seller carry?
A seller carry (also called seller financing or owner financing) is when the seller acts as the bank on part or all of the sale. The buyer makes a down payment and signs a promissory note for the remainder, with the property as collateral.
Why would a seller carry financing?
Sellers carry to reach a wider pool of buyers, get a higher price, avoid large lump-sum capital gains (via an installment sale), or earn ongoing interest income. It is especially useful when traditional financing is tight or the property has features banks dislike.
What is a balloon payment?
A balloon is a large lump sum due at a preset date before the note would naturally amortize to zero. A 30/5 note amortizes like a 30-year loan but the remaining balance is due in year 5. The buyer usually refinances into a conventional mortgage to pay the balloon.
Are there legal limits on seller financing?
Yes. The federal SAFE Act and Dodd-Frank restrict how many seller-financed consumer dwellings a person can originate per year without a mortgage license. States may also impose usury rate caps and specific documentation. Use a real estate attorney.
What protects the seller if the buyer stops paying?
The note is secured by a mortgage or deed of trust on the property, same as a bank loan. If the buyer defaults, the seller forecloses and takes the property back. The down payment and prior payments stay with the seller.
Related Calculators
Lease Option Calculator
If the buyer isn't ready to finance yet, compare a lease-to-own structure that converts into a sale later.
Mortgage Calculator
Pressure-test what a traditional refinance will look like when the balloon comes due.
APR Calculator
Include any upfront points or fees to compare the carry note's APR to a conventional loan.
1031 Exchange Calculator
Seller carry on investment property can pair with a partial 1031 on the cash portion.
Cap Rate Calculator
For investors, compare the note yield with the cap rate you'd earn keeping the property.
Seller Net Sheet Calculator
Model the cash portion of the sale alongside the note to see the true seller net.
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