Seller Carry Financing Calculator

Seller carry financing — also called owner financing or a purchase money mortgage — removes the bank from the transaction entirely. The seller extends credit directly to the buyer, receiving monthly payments of principal and interest instead of a lump sum at closing. For buyers who cannot qualify for conventional financing, or investors seeking deals in a 7% rate environment, seller carry at a negotiated 5% to 6% is a meaningful cost reduction. For sellers, it converts a taxable lump-sum capital gain into an installment sale, potentially spreading tax liability across years under IRS Section 453. According to the IRS Publication 537 on Installment Sales, installment sale reporting can defer federal capital gains tax proportionally to the amount received each year. The structure is powerful but the terms require precise modeling — interest rate, amortization or balloon period, down payment, and lien position all affect risk and return for both parties. This calculator models the full payment structure, total interest paid, balloon balance, and effective yield for the seller-lender.

This seller carry financing calculator models the complete payment structure of an owner-financed real estate transaction. Enter the sale price, down payment, seller carry loan amount, interest rate, amortization term, and balloon payment period. The calculator returns the monthly payment, amortization schedule summary, balloon balance at the end of the balloon period, total interest earned by the seller over the carry period, and the effective yield to the seller on their receivable investment.