Balloon Payment Loan Calculator

Work out balloon payment loan instantly with clear inputs, formula shown and shareable results.

About Balloon Payment Loan Calculator

A balloon loan amortises only part of the principal, leaving a lump sum at maturity. The monthly payment is computed on the loan less the present value of the balloon, which is why the instalment is noticeably lighter than a fully amortising one.

Formula

Balloon structure

Payment = PMT(P - B·(1+r)^-n, r, n), with B repaid at maturity

B: Balloon amount

Worked example

With the default values below, Balloon Payment Loan Calculator returns Monthly Payment of $20,847.52. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan Amountminimum 0: 1,200,000
Annual Interest Rateaccepts 0–100 %: 10 %
Term In Yearsaccepts 1–20: 5
Balloon As Share Of Loanaccepts 0–90 %: 30 %

Results

Monthly Payment: $20,847.52
Balloon Due At Maturity: $360,000.00
Total Interest: $410,851.05
Total Paid Including Balloon: $1,610,851.05

Step by step

1Values used
2Balloon structure
3Monthly Payment= 20,847.52
4Balloon Due At Maturity= 360,000.00
5Total Interest= 410,851.05
6Total Paid Including Balloon= 1,610,851.05

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

What is the risk?

Refinancing risk. If credit conditions or the asset's value have moved against you when the balloon falls due, replacing it can be expensive.

Why does total interest rise?

The balloon portion stays outstanding for the whole term, accruing interest throughout.