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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

Sale price

Buyer down payment

15.0% of sale price

Seller-side closing costs

Note terms

Note rate

Amortization (years)

Balloon (years)

Set 0 for no balloon — fully amortized to end of term.

Payment structure

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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Seller Carry Calculator is built to give a quick, browser-based estimate for seller carry. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the seller carry result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this seller carry estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.