Seller Mortgage Capital · Commercial real estate
Commercial Seller Financing Calculator
Estimate monthly payments, interest income, balloon balances, and seller proceeds for commercial real estate seller-financing transactions. Compare seller financing to a traditional sale and evaluate different financing structures.
Planning owner financing for commercial real estate? Model a seller-financed property with amortizing or interest-only terms. For commercial seller financing based on your cash goals, begin with Structure My Sale™.
Deal inputs
USD$150,000 at closing
1 to 10 years. Remaining principal is due at the end of this term.
0 years = interest-only. Choose any whole number from 0 to 30 years.
Example terms, not an offer of financing. Payments assume a fixed rate and monthly installments.
Your deal summary
Monthly income
$4,433.95
Principal and interest · excludes taxes, insurance, and servicing fees
Annual income
$53,207.36
Financed amount
$600,000
Down payment
$150,000
Balloon at maturity
$550,395.30
Interest earned over term
$216,432
Monthly payments over term
$266,037
Total received incl. balloon
$966,432
At the end of year 5, the buyer owes $550,395.30 in addition to the final regular payment. Refinancing or resale is not guaranteed.
Remaining loan balance
Year-end principalAmortization schedule
| Year | Payments | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $53,207.36 | $8,495.45 | $44,711.91 | $591,504.55 |
| 2 | $53,207.36 | $9,154.98 | $44,052.39 | $582,349.57 |
| 3 | $53,207.36 | $9,865.70 | $43,341.66 | $572,483.86 |
| 4 | $53,207.36 | $10,631.60 | $42,575.76 | $561,852.26 |
| 5 | $53,207.36 | $11,456.96 | $41,750.40 | $550,395.30 |
Scenario comparison
How seller financing stacks up against a traditional cash sale.
What you paid for the property, plus improvements, minus depreciation.
Any mortgage balance you must pay off at closing. Enter 0 if you own it free and clear.
Estimate only — your actual rate depends on your situation.
Interest income is taxed as ordinary income as you receive it.
Excludes brokerage commission; percentage of sale price. Title, escrow, and transfer taxes usually run about 1%.
Estimated at 3% of the sale price; includes the SMC fee (1.5% of the loan amount).
A brokerage commission is often about 5% of the sale price.
If your state has an income tax, its top rate applies to both the gain and the interest income. Estimate only.
Traditional sale
- Sale proceeds
- $750,000
- Capital gain
- $210,000
- Est. capital gains tax
- −$42,000
- Est. closing costs (1%)
- −$7,500
- Brokerage fee (5%)
- −$37,500
- Net after sale
- $663,000
Seller financed
Recommended- Down payment at close
- $150,000
- Total monthly payments
- $266,037
- Balloon payment
- $550,395
- Total interest income
- +$216,432
- Est. capital gains taxtaxed only as principal is received
- −$42,000
- — due at closing (on down payment)
- −$8,400
- — spread over the note years28% of each principal dollar received
- −$33,600
- Est. ordinary income tax (22%)on the interest income, spread over the note years
- −$47,615
- Est. transaction costs & SMC fee (3%)percentage of the sale price; includes the SMC fee of 1.5% of the loan amount, paid by the seller at closing
- −$22,500
- Brokerage fee (0%)
- −$0
- Total net return
- $854,317
Seller financing returns $191,317 more than a traditional sale — that's 29% more in your pocket over the life of the note.
Seller perspective
Why seller financing is your better option
Instead of handing your buyer to a bank — and paying up to 6% in selling costs to do it — you finance the deal directly. Your property generates $4,433.95/month in income while the buyer pays you directly. You keep more, earn more, and control the terms.
Over 5 years, seller financing turns a $750,000 property into $966,432 in total receipts — that's $216,432 in interest income alone.
$216,432 in interest income — after an estimated $47,615 in income tax, that's $168,817 you keep. A traditional sale pays no interest at all.
Potential installment-gain timing — eligible gain may be recognized as principal arrives. This simplified illustration shows about $8,400 on the down payment, compared with $42,000 for a cash sale. Depreciation recapture, existing-debt rules and other tax provisions can require earlier recognition. Confirm the actual treatment with your CPA.
Negotiate financing directly — you and your buyer can negotiate the note terms. Buyer underwriting, collateral review, legal documents, title work and any existing lender requirements still matter. Closing time is transaction-specific.
SMC protects your deal — borrower underwriting, loan servicing, and collateral monitoring, with attorneys and a title company engaged on every transaction.
Questions before you carry the note?
Explore the commercial seller financing guides for existing mortgages, down payments, balloon risk and tax considerations, or request a transaction review.
Estimates only. Not a commitment to lend, an underwriting decision, or tax or legal advice. Totals are nominal dollars, not present-value returns. The seller holds the note; payment depends on the buyer’s performance. Displayed figures are rounded.
Request a transaction review