How to Calculate Owner-Financed Loan
What is Owner-Financed Loan?
Calculates payments and amortization for seller-financed real estate and other owner-financed purchases.
Formula
Monthly Payment = PV * (r(1+r)^n) / ((1+r)^n - 1)
Step-by-Step Guide
- 1Enter purchase price and down payment
- 2Specify interest rate and loan term in years
- 3Calculate monthly payment and amortization schedule
Worked Examples
Input
$150,000 property, $30,000 down, 6% for 20 years
Result
$716.43 monthly payment
Seller financing arrangement
Common Mistakes to Avoid
- ✕Confusing buyer and seller responsibilities
- ✕Not considering balloon payment structures
Ready to calculate? Try the free Owner-Financed Loan Calculator
Try it yourself →