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Owner financing calculator

Evaluate an owner-financed property purchase from the buyer's chair. Calculate your monthly principal and interest payment, loan-to-value ratio, total out-of-pocket costs, and the lump-sum balloon payoff due at maturity. Not financial advice.

Runs locally · Not financial advice

Optional. Many owner-financed notes require refinancing or paying off the balance within 3 to 10 years. Leave blank for full amortization.

Monthly payment (P&I)
$1,703.17
Amount financed (Loan balance)
$256,000.00
Down payment ratio
20% ($64,000.00)
Loan-to-value (LTV)
80%
Interest paid (to balloon or payoff)
$87,167.33
Total out-of-pocket cost
$407,167.33
Balloon payoff due at month 60 (Year 5)
$242,680.04

As the buyer, you will need to pay cash or refinance into a new mortgage to pay off this balance by month 60.

Amortization snapshot (first 12 payments, plus balloon)
#PaymentInterestPrincipalBalance
1$1,703.17$1,493.33$209.84$255,790.16
2$1,703.17$1,492.11$211.07$255,579.09
3$1,703.17$1,490.88$212.30$255,366.80
4$1,703.17$1,489.64$213.53$255,153.26
5$1,703.17$1,488.39$214.78$254,938.48
6$1,703.17$1,487.14$216.03$254,722.45
7$1,703.17$1,485.88$217.29$254,505.16
8$1,703.17$1,484.61$218.56$254,286.59
9$1,703.17$1,483.34$219.84$254,066.76
10$1,703.17$1,482.06$221.12$253,845.64
11$1,703.17$1,480.77$222.41$253,623.23
12$1,703.17$1,479.47$223.71$253,399.53
60 · balloon$242,680.04$1,407.42$241,272.62$0.00

Disclaimer: Not financial advice. Figures represent principal and interest only. Real estate purchases involve additional recurring costs including property taxes, hazard insurance, escrow, and maintenance, as well as upfront closing costs.

Viewing this note from the seller’s perspective? Use the Seller financing calculator.

Owner financing calculator example

A $320,000 purchase with 20% down and a 5-year balloon

Price $320,000, down $64,000 (20%), 7% interest, 30-year amortization, balloon due in 5 years. Monthly P&I is $1,703.18; balloon payoff at month 60 is $240,432.48.

Owner financing calculator how-to

  1. Calculate principal P = price - downPayment, downPaymentPercent = round((downPayment / price) * 100), loanToValuePercent = round((P / price) * 100).
  2. Calculate monthly rate r = annualRatePercent / 100 / 12 and term months n = round(termYears * 12).
  3. Level monthly payment: if r === 0, payment = P / n; else payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1).
  4. Periods = balloonMonth ?? n. Amortize month by month: interest = balance * r; principalPaid = min(payment - interest, balance); balance = max(0, balance - principalPaid).
  5. At balloon month: balloon payment = balance + interest. totalInterest = sum of monthly interest; totalCostOfPurchase = downPayment + totalPaid.
  6. Round money figures to cents. Not financial advice.

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Owner financing calculator FAQ

What is owner financing?
Owner financing (also called seller financing) is a real estate purchase structure where the property seller finances the purchase instead of a traditional bank or mortgage lender. The buyer makes monthly principal and interest payments directly to the seller under an agreed promissory note and deed of trust or mortgage.
How is this calculator different from the seller financing calculator?
This calculator focuses on the buyer’s perspective: upfront down payment percentage, loan-to-value (LTV) ratio, monthly principal and interest payment, total out-of-pocket purchase cost, and the balloon payoff requirement that the buyer must settle or refinance.
What is a balloon payment and why is it important for buyers?
Many owner-financed deals feature a balloon clause: monthly payments amortize over a 20 or 30 year schedule to keep payments affordable, but the remaining balance is due in full after a shorter period (typically 3 to 10 years). When the balloon date arrives, the buyer must refinance with a conventional lender, sell the property, or pay off the remaining balance in cash.
Are property taxes and homeowners insurance included?
No. The figures represent principal and interest (P&I) on the note only. Buyers must also budget for property taxes, hazard insurance, escrow or servicing fees, recording costs, and maintenance.
Is this financial or legal advice?
No. This calculator is a mathematical amortization tool for educational estimation only. Owner financing carries legal risks and strict foreclosure terms. Consult a qualified real estate attorney and a licensed mortgage loan originator before entering into a transaction.
How is owner financing calculated without this page?
Principal P = price − down payment. Monthly rate r = annualRatePercent / 100 / 12. Term months n = round(termYears × 12). If r is 0, payment = P / n; else payment = P × (r (1+r)^n) / ((1+r)^n − 1). For balloon month b = round(balloonYears × 12) < n, walk months 1..b: interest = balance × r; principal = min(payment − interest, balance); balance = max(0, balance − principal). At balloon month b, payment is balance + interest. Total out-of-pocket = down payment + total payments. Not financial advice.