Seller note calculator

Enter the note the seller will carry. See every monthly payment, how much goes to interest, the balloon if there is one, and the total interest over the life of the note. Download the schedule as a CSV for your lender or lawyer.

Order of the phases: standby first (no payments; interest is added to the balance if the box is ticked), then interest-only months, then level payments that clear the balance over the amortization period. If the amortization period is longer than the term, the balance left at the end of the term is the balloon. What a seller note is, why sellers agree to one and what to negotiate: What is a seller note?. To see the note alongside the bank loan, use the SBA loan calculator.

Questions people ask

What is a typical seller note in a business sale?
Seller notes most often cover 5 to 20 percent of the price, run three to seven years, and carry a fixed rate; the terms are whatever the buyer and seller agree. Read What is a seller note? for the full picture.

What does standby mean on a seller note?
The seller agrees to receive no payments for a set period so the bank is paid first. Interest usually still accrues. SBA lenders ask for standby when the seller note counts toward the buyer's equity; the required standby period is set by the SBA's rules and the lender.

What is a balloon payment?
A single large payment of the remaining balance at the end of the term. It happens when the note is amortized over a longer period than its term: for example a ten-year amortization schedule with the whole balance due after five years.

Does interest-only lower the total cost?
No, it raises it. During interest-only months the balance does not fall, so interest is charged on the full principal for longer. It helps cash flow in the first year, which is why buyers ask for it.

Estimates only, with monthly compounding, a fixed rate, payments at the end of each month and no fees or prepayments. Acquisitions.com is an advisory firm, not a broker-dealer or a lender; financing comes from third-party lenders and investors. Not financial advice.