Seller Finance NPV Calculator — What is My Note Worth?

Net present value (NPV) is the financial-industry answer to one of the most common questions seller-financiers ask: what is my note actually worth today? When a seller finances a property sale, the remaining principal balance on the amortization schedule is not the same as the price a note investor will pay. Investors discount the future payments back to today using a target yield — their discount rate — to compensate for risk and time. The higher the discount rate, the lower the present value. This calculator runs that math directly: it sums every monthly payment plus any balloon, each one discounted back to today at the rate you choose, and shows the total present value.

The classic use case is a seller deciding whether to sell the note for a lump sum. If you're holding a note paying $1,200 a month for 25 more years with a $100,000 balloon, and a note buyer offers you $145,000, is that fair? Punch the numbers in. If today's market discount rate for similar notes is 10%, the NPV at 10% is roughly $151,000 — the buyer is offering a small discount under market. If they'd offered $120,000, you'd see immediately that the implied discount rate is much higher than market and you'd push back. Note buyers do this calculation in their heads; this tool puts the same math at your fingertips.

The second use case is figuring out the right discount rate. Note pricing isn't a single number — it depends on the borrower's credit, the property's loan-to-value ratio, payment history, and current market yields. As a rough guide: clean owner-occupied notes with a strong borrower trade in the 8–10% range; investor-owned notes with thin equity or a thin payment record can trade at 12–18% or worse. Try several discount rates to see how sensitive your note value is to each — that sensitivity is exactly what you'll be negotiating over.

This calculator is the NPV math primitive — you supply the discount rate and the cash flows, and it does the discounting. If you'd rather have help estimating the discount rate itself, our free Note Appraisal Calculator builds it from real deal characteristics: lien position, investment-to-value ratio, seasoning, payer credit, property type and condition, and the state's foreclosure timeline. Use this NPV calculator when you already have a target yield in mind (e.g., a buyer at your target rate, sensitivity analysis across rates, or checking an offer you've already received) and the appraisal calculator when you want a market-value estimate without picking a rate yourself. For any other time-value-of-money problem — solving for an unknown variable, analyzing uneven cash flows, computing IRR — the Flexi TVM calculator handles it.