Seller Note Discount Calculator
If you sell the note you are carrying, work out the balance still owed and how much of it you give up to be paid today.
The note you are holding
Sale price minus the down payment
Result of your calculation
Enter the note amount, rate, term, and an offer price to see the discount.
What this calculator is, and what it isn't
- It is a math tool. It runs a standard amortization calculation on figures you type in. Change an input and the output changes. Nothing is looked up, and nothing is saved.
- It is not an offer or a quote. No rate, payment, down payment, or term shown here is being offered to you by Ownerfi or by any seller.
- It does not reflect any particular property. In owner financing the price, down payment, interest rate, term, and whether there is a balloon are set by the individual seller and are negotiable. Two homes on the same street can be structured completely differently.
- It is not a credit decision. Entering numbers here does not qualify, pre-qualify, or approve anyone for anything, and a real deal will include costs this calculator does not model — closing costs, servicing fees, and whatever the specific agreement adds.
- It is not advice. This is general information, not legal, tax, or financial advice. Before signing anything, have the documents reviewed by a licensed attorney in the state where the property sits.
What you are actually selling
When you owner-finance a home you end up holding two things: a promissory note, which is the buyer's promise to pay, and a security instrument — a deed of trust or a mortgage — which is what lets you take the property back if they do not. The note can be sold to a third party. The buyer keeps making the same payments; they just send them somewhere else.
What you sell is the remaining balance, not the original note amount. Every payment collected so far has already reduced it, and on an amortizing note in its early years that reduction is small — most of an early payment is interest.
What moves the price
- Payment history. Months of on-time payments are the single strongest signal.
- Equity. The gap between the balance and the property's value is the buyer's protection.
- The rate. A note written well below current market rates is worth less to someone buying it today.
- The paperwork. A properly drafted, properly recorded note is a saleable asset. One that is not may be unsaleable at any price, which is why it is worth structuring for this on day one rather than discovering the problem years later.
Common questions
Is this what a note buyer would pay me?
No. This calculates the discount implied by an offer you enter. It does not price your note, and Ownerfi does not buy notes. Real pricing depends on the payment history, the equity in the property, how the rate compares to current market rates, and whether the note and security instrument were properly drafted and recorded.
Why do note buyers discount at all?
Because money today is worth more than the same money spread over twenty years, and because they are taking on the risk that the buyer stops paying. The discount is the price of converting a stream of payments into a lump sum.
Does seasoning really change the price?
It is one of the larger factors. A note with two years of on-time payments has demonstrated something a brand new note has not, and it typically prices better for that reason alone.
Can I sell only part of the note?
Partial sales are common — selling a fixed number of future payments rather than the whole note, then keeping the remainder. This calculator models a full sale only.