Free tool · Seller financing
Seller Financing Calculator
Calculate payments on a seller note (owner financing), with or without a balloon. Enter the note amount, rate, amortization, and balloon to see the monthly payment and what comes due.
A seller note is often amortized over a long schedule with a shorter balloon, so payments stay low but the balance comes due earlier. Set the balloon to 0 for full amortization.
How seller financing works
A seller note is just a loan from the seller to the buyer. The buyer makes monthly payments with interest, often on a long amortization schedule with a shorter balloon so the payments stay manageable but the seller is paid off within a few years. Seller financing bridges the gap between the buyer's cash, the bank loan, and the price — and it tells everyone the seller believes the business will keep performing.
How to use this calculator
Enter the seller note amount, interest rate, amortization period, and balloon (set it to 0 for full amortization). You'll see the monthly payment, total interest, and the balloon balance due. For the full picture, read our guide to seller financing and buying an existing business.
Frequently asked questions
Seller financing (also called owner financing or a seller note) is when the seller lets the buyer pay part of the price over time, with interest, instead of all cash at closing. It's common in small business sales and often bridges the gap between the buyer's cash plus bank loan and the purchase price.
A balloon means the note is amortized over a long schedule to keep monthly payments low, but the entire remaining balance becomes due on an earlier date. For example, payments calculated over 10 years with the balance due in 5.
Seller notes commonly carry interest in the mid-to-high single digits, run 3 to 7 years, and cover 10% to 30% of the purchase price. Terms are negotiable and depend on the deal, the buyer's strength, and lender requirements.
Yes. A seller note signals the seller's confidence in the business and is often required to make SBA deals work, since it can count toward the buyer's equity injection when placed on standby.
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