Calculator
Seller financing calculator
Estimates only. Educational only; not legal, tax or financial advice. No guarantee of savings or approval.
Blended DSCR
1.74x
At or above the 1.25x many lenders look for.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistThe formulas
Bank / SBA loan = price − down payment − seller note
Payment = P × r ÷ (1 − (1 + r)^−n)
Balloon = seller note balance at the balloon month
Blended debt service = (bank payment + seller payment) × 12
DSCR = annual cash flow ÷ blended debt service
Worked example (illustrative numbers)
- Price $1,000,000; down $100,000; seller note $100,000 at 7.00% over 10 years, 5-year balloon (illustrative)
- Bank / SBA loan $800,000 at 10.50% for 10 years → ≈ $10,795/month
- Seller payment ≈ $1,161/month; balloon at month 60 ≈ $58,637
- Seller interest through the balloon ≈ $28,302
- Blended debt service ≈ $143,471/year; cash flow $250,000 → DSCR ≈ 1.74x
Key takeaways
Common questions
How do I model a standby seller note?
Set the seller note to $0 to see DSCR during standby, then re-enter it to see DSCR after payments start.
What rate do seller notes usually carry?
It is negotiated between buyer and seller. Ask your tax advisor about minimum interest rules before agreeing to a very low rate.
What if there is no balloon?
Enter 0 for the balloon month and the note amortizes fully over its term.
Is the DSCR here what a lender will use?
It is an estimate. Lenders calculate cash flow their own way, including owner salary and add-backs.
Keep learning
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