How to Use an Owner Finance Calculator: A Step-by-Step Guide


If you’re looking to sell your property with owner financing, using an owner finance calculator is essential to estimate your passive income potential. In this step-by-step guide, we will walk you through how to use an owner finance calculator to get an estimate of your monthly earnings.

Step 1: Enter the Property’s Value

The first step is to enter the property’s value or the price you would sell your property at. This is the starting point for calculating your passive income potential.

Step 2: Enter the Buyer’s Down Payment

The second step is to enter the ideal amount you would like to receive upfront when selling your home with seller financing (if any). The buyer’s down payment is the cash a buyer would pay you upfront for your property during a seller financed mortgage.

Step 3: Enter the Interest Rate

The third step is to enter the ideal interest rate you would like to charge for your seller financing home loan. This is also commonly referred to as the owner financing interest rate, which is the interest you would charge the buyer. The interest rates are expressed as an annual percentage.

Step 4: Enter the Loan Term

The fourth and final step is to enter the ideal length of the owner financing loan term in years. This is the length of the loan and determines how quickly you would like to be paid back.


In conclusion, using an owner finance calculator is easy and straightforward. By following the steps provided, you can estimate your passive income potential and make informed decisions about selling your property with owner financing.