Seller Financing & Balloon Note Calculator

Model a seller-financed note from sale price through balloon payoff. Calculate the note payment, balloon balance, interest collected, total seller cash, present value at an investor yield, and implied yield from a proposed note purchase price.

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Your calculated results

The sample values calculate automatically. Change any input to evaluate your own scenario.

Seller-financing calculations are estimates. Contracts may use different compounding, payment dates, late charges, servicing costs, taxes, prepayment terms, and legal requirements. Note valuation also depends on credit, collateral, documentation, seasoning, and marketability.

Two calculations in one

Structure the note, then value the cash flow

The first part of the calculator determines the payment and balloon from the sale terms. The second part treats the resulting payment stream as an investment and discounts those payments at a target yield.

Note value = PV of scheduled payments + PV of balloon

If the investor's required yield exceeds the note rate, the present value will generally be below the face amount financed.

Balloon notes separate payment term from amortization term

A note can use a 30-year amortization payment but require all remaining principal after five years. The payment is therefore much lower than a five-year fully amortizing payment, while a substantial balloon remains due.

Need the complete note schedule?

Amortization Pro can create, save, edit, print, and export the full payment schedule behind the seller-financing calculation.

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Frequently asked questions

How is the balloon balance calculated?

The payment is based on the longer amortization term. The calculator then finds the principal still unpaid immediately after the scheduled payment at the balloon date.

What is note value at a target yield?

It is the present value of the remaining scheduled payments plus the balloon, discounted at the investor yield you enter.

Why can note value differ from the unpaid principal?

An investor may demand a yield above or below the note rate. A higher required yield generally produces a value below the note balance; a lower required yield generally produces a premium.

Does the down payment affect the note payment?

Yes. The financed amount equals sale price minus down payment, and the scheduled note payment is calculated from that financed amount.