How to use this calculator
- Enter the price and down payment percentage.
- Enter fee quotes for title/escrow, attorney, recording, inspections and loan servicing setup.
- Enter your local transfer tax rate and who pays it.
- Enter any agent commission the seller pays.
- Review buyer cash to close, the note amount and the seller's net cash at closing.
Worked example
On a $250,000.00 sale with 10% down, the buyer brings $25,000.00 plus $4,150.00 in fees, so $29,150.00 in total. The seller carries a note for $225,000.00. After paying the transfer tax, the seller nets $23,750.00 at closing and receives the rest through monthly payments.
These are the default inputs above, so you can follow along.
The formula
Down payment = price × down %. Buyer cash to close = down payment + buyer fees + buyer share of transfer tax. Note amount = price − down payment. Seller net at closing = down payment − commission − seller share of transfer tax. Who pays which fee is negotiable and varies by area, so this calculator assigns the listed fees to the buyer by default.
Frequently asked questions
Are closing costs lower with seller financing?
Often, because there is no bank origination, underwriting or mortgage insurance. Title, recording and legal fees still apply.
Should we use a title company?
Yes, in most cases. A title search and title insurance protect the buyer, and the title or escrow company can handle the closing and recording.
Who pays closing costs in seller financing?
It is negotiable. Local custom often decides who pays transfer taxes and title fees, but anything can be agreed in the contract.
What is a loan servicing setup fee?
Third-party servicers charge a setup fee and a small monthly fee to collect payments, track balances and send year-end statements.
Can the down payment be borrowed?
Sometimes, but sellers usually want the buyer's own money at stake. Borrowed down payments raise default risk.