BUSINESS-SALE PAYMENT TERMS
What would a seller note actually pay?
See the monthly payment, interest before maturity, and remaining balloon balance for terms you choose. No signup. No financial values submitted.
Calculate the noteBROWSER-ONLY CALCULATOR
Model the note before you negotiate it.
Your principal, rate, and terms stay in this browser. Only an anonymous use count is recorded.
WORKED EXAMPLE
A $250K note can leave an $86K balloon.
At 8% annual interest, amortized over seven years and due after five, the modeled payment is $3,897 a month. After 60 payments, $86,155 remains due. Use “Load example” above to inspect the full schedule.
Seller note principal$250,000
Annual interest · amortization8% · 7 years
Balloon dueAfter 5 years
Monthly principal + interest$3,897
Interest received before balloon$69,948
Remaining balloon balance$86,155
READ THE OUTPUT IN LAYERS
Payment, maturity, and collection are different questions.
Translate terms into a monthly obligation.
The amortization period determines the scheduled principal-and-interest payment. A longer schedule lowers the payment but leaves principal outstanding longer.
Make the balloon impossible to miss.
If the note matures before it fully amortizes, the remaining principal is due as a lump sum after the modeled monthly payments.
Do not confuse promised receipts with cash.
The model does not score the buyer, collateral, guarantees, covenants, default remedies, or the probability and timing of collection.
PRIMARY GUIDANCE
The arithmetic is the easy part.
The CFPB explains how fixed payments shift from more interest toward more principal over an amortizing loan. IRS Publication 537 covers installment sales, business-asset allocation, stated interest, and other tax rules. This calculator models payment arithmetic only; have qualified legal and tax advisers review the transaction documents.
MODEL THE WHOLE SALE
A seller note is only one part of your proceeds.
Bridge the operating-business value through cash, debt, transaction costs, earnouts, escrow, and seller financing to estimate the closing wire.
COMMON QUESTIONS
Seller financing a business sale
What is seller financing in a business sale?
Seller financing means the seller accepts a buyer obligation for some of the purchase price instead of receiving all consideration at closing. The buyer then pays the note under the negotiated principal, interest, payment, security, default, and maturity terms.
What is the difference between amortization and a balloon term?
Amortization is the longer schedule used to calculate the monthly payment. If the note matures sooner, the principal that remains after the scheduled payments becomes the balloon balance due at maturity. Set both periods equal to model a fully amortizing note with no balloon.
How is the monthly seller-note payment calculated?
The calculator applies the standard fixed-payment amortization formula to the principal, nominal annual interest rate divided into monthly periods, and amortization length. At 0% interest, it divides principal evenly across the amortization months.
Does seller financing increase the value of the business?
Not automatically. Business value, negotiated purchase price, and payment terms answer different questions. Seller financing changes how and when consideration may be received and introduces collection risk; it should not be counted as guaranteed cash at closing.
Does this calculate installment-sale tax?
No. IRS Publication 537 explains that an installment sale generally involves at least one payment after the tax year of sale, and that selling an entire business requires allocating price across different assets. Tax treatment can vary by asset, basis, recapture, entity, interest terms, and transaction structure. Ask qualified tax and legal advisers to review the actual note and agreement.