This balloon payment calculator computes the periodic payment and the remaining balloon balance for a loan with a large final payment.
Finance
Balloon Payment Calculator
Calculate payments and the balloon balance for a balloon-payment loan.
Calculator
About this calculator
Formula notes
Periodic rate eq_p = (1 + r/m)^(m/q) − 1; payment = L × eq_p × (1 + eq_p)^n / ((1 + eq_p)^n − 1); balloon balance = L × (1 + eq_p)^nb − payment/eq_p × ((1 + eq_p)^nb − 1).
Worked examples
- Example: a $200,000 loan at 7% annual rate with monthly payments for 20 years and a balloon after 5 years leaves a balance of about $176,130 and payments of about $1,553.
- A $200,000 loan at 7% amortized over 20 years with a 5-year balloon has monthly payments near $1,553 and a final balance near $176,130.
How to use it
- Enter the loan amount, annual rate, and amortization period.
- Set the payment frequency and the balloon timing.
- Compare the balloon balance with a fully amortizing loan to see the difference.
Frequently asked questions
What is a balloon payment?
It is the large lump sum due at the end of the loan after a series of smaller payments based on a longer amortization schedule.
Does the calculator include taxes, insurance, or fees?
No. It models principal and interest only; escrow items and lender fees need separate estimates.
Limits and interpretation
- The calculation covers principal and interest only; taxes, insurance, escrow, and lender fees are not modeled.
- The balloon balance assumes every payment is made on schedule and does not model prepayment, refinancing risk, or rate changes on adjustable loans.