Finance category
Mortgage, loan, investing, tax, and money calculators.
Seller Finance Calculator
Seller financing creates flexibility for both parties when traditional financing is slow or unavailable.
Monthly payment
$1,761
Balloon payment
$228,168
Total seller interest
$93,830
How the math works
Monthly = standard amortization on (price − down). Balloon = remaining balance at balloon year.
$240k 8% 30y = $1,761/mo. After 5 yr balloon: $228,300 + $113,800 interest = $342,100 collected.
How to Use
- Enter purchase price.
- Enter down payment %.
- Enter rate %.
- Enter term years.
- Enter balloon years.
- Read monthly payment.
Frequently Asked Questions
Seller finance dynamics?
Down payment: 10–25% typical. Rate: 6–12% (often above market for risk premium). Term: 5–30 years. Balloon: common at year 3–7 (buyer refinances). Seller benefits: passive income, defer capital gains (installment sale), often higher net than cash sale. Buyer benefits: easier qualification, flexible terms, faster close. Documents: promissory note + deed of trust/mortgage. Servicing: third-party servicer ($30–50/mo) recommended for tax tracking. Default risk: collateralized; sellers should have foreclosure pathway clear.
How does this debt analysis fit a workout strategy?
Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.
Discounted payoff (DPO) vs forbearance vs deed in lieu?
DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.
Special servicing dynamics?
CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.
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