Loan desk
Balloon Loan Calculator
Estimate payments based on a longer amortization term and the balance due at a shorter balloon term.
Balloon Loan Calculator: Calculate a loan's regular payment using a longer amortisation period, then find the principal still due after a shorter balloon period. The result separates the monthly instalment, the remaining balance payable at maturity, and their combined total. Enter both terms in months; the balloon term must end before the amortisation term. Runs 100% locally in your browser with zero server file uploads.
- Category
- Calculators
- Runs
- In your browser
- Cost
- Free · no sign-up
- Availability
- Ready to use
Regular monthly payment
$1,580.17
- Balloon payment / remaining balance
- $234,027.44
- Payments before balloon
- $94,810.20
- Payments plus balloon balance
- $328,837.65
- Interest paid before balloon
- $78,837.65
Payment is based on the amortization term; balloon balance is the balance after the balloon term's scheduled payments.Principal, interest, and balance
Showing the first 12 payments and the final displayed payment. The engine uses the full bounded schedule.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,580.17 | $226.00 | $1,354.17 | $249,774.00 |
| 2 | $1,580.17 | $227.23 | $1,352.94 | $249,546.77 |
| 3 | $1,580.17 | $228.46 | $1,351.71 | $249,318.31 |
| 4 | $1,580.17 | $229.70 | $1,350.47 | $249,088.61 |
| 5 | $1,580.17 | $230.94 | $1,349.23 | $248,857.67 |
| 6 | $1,580.17 | $232.19 | $1,347.98 | $248,625.48 |
| 7 | $1,580.17 | $233.45 | $1,346.72 | $248,392.04 |
| 8 | $1,580.17 | $234.71 | $1,345.46 | $248,157.32 |
| 9 | $1,580.17 | $235.98 | $1,344.19 | $247,921.34 |
| 10 | $1,580.17 | $237.26 | $1,342.91 | $247,684.07 |
| 11 | $1,580.17 | $238.55 | $1,341.62 | $247,445.53 |
| 12 | $1,580.17 | $239.84 | $1,340.33 | $247,205.69 |
| 60 | $1,580.17 | $310.84 | $1,269.33 | $234,027.44 |
- The amortization term controls the regular payment; the shorter balloon term controls when the remaining balance is due.
- The balloon amount is not a final fully amortized payment and may be substantial.
- This is an educational estimate for a fixed-rate loan with monthly compounding and monthly payments.
- Taxes, insurance, mortgage insurance, HOA dues, origination charges, and other costs are not included unless an input says otherwise.
- Actual lender terms, APR, fees, rounding, payment dates, prepayment rules, and contracts can differ. This is not a credit offer or financial advice.
Formula and worked example
Payment is based on the amortization term; balloon balance is the balance after the balloon term's scheduled payments.
A worked example with sample values:
| Inputs | |
|---|---|
| Loan amount | $250,000.00 |
| Annual interest rate | 6.5% |
| Amortization term | 360 months |
| Balloon term | 60 months |
| Results | |
|---|---|
| Regular monthly payment | $1,580.17 |
| Balloon payment / remaining balance | $234,027.44 |
| Payments before balloon | $94,810.20 |
| Payments plus balloon balance | $328,837.65 |
| Interest paid before balloon | $78,837.65 |
Regular instalments and the maturity balance
Let P be principal, i monthly rate, n amortisation months and k balloon months with k < n. Payment M = P × i ÷ (1 − (1 + i)^−n). Remaining balance B after k payments = P × (1 + i)^k − M × (((1 + i)^k − 1) ÷ i). At zero interest, M = P ÷ n and B = P − k × M.
For illustrative P = $10,000, a 6% annual rate, n = 60 and k = 24, i = 0.005. M = 10,000 × 0.005 ÷ (1 − 1.005^−60) = $193.328015, displayed as $193.33. B = 10,000 × 1.005^24 − M × ((1.005^24 − 1) ÷ 0.005) = $6,354.89. Regular payments total $4,639.87; adding the balloon gives $10,994.76, including $994.76 interest through month 24.
The unpaid balance remains a payment obligation
CFPB's balloon-payment explanation (https://www.consumerfinance.gov/ask-cfpb/what-is-a-balloon-payment-when-is-one-allowed-en-104/) describes a larger payment at the end of a term. This estimate does not assume a refinance will be available or calculate its costs. Plan the maturity amount separately from whether the regular instalments fit a monthly budget.
Interest-only borrowing, described by CFPB (https://www.consumerfinance.gov/ask-cfpb/what-is-an-interest-only-loan-en-101/), postpones principal reduction during its interest-only phase. The current balloon model amortises principal from month one, omits fees and uses fixed monthly interest. The displayed balloon is remaining principal, not all interest that would have been paid over the longer unused term.
How to use it
- Enter the amounts, rate and duration shown in the worked example or your own scenario.
- Calculate to update the result and review the assumptions.
- Compare the formula and example before using the result for planning.
Privacy & limitations
Inputs and calculations stay in your browser. No values are uploaded.
Related tools
Frequently asked questions
Which term controls the monthly payment on a balloon loan?
The longer amortisation term sets the regular instalment as though the debt were repaid over that period. The shorter balloon term stops the schedule and makes the remaining principal due. Changing the balloon term alone changes the unpaid balance rather than recalculating the regular payment.
Is the balloon paid instead of the last regular instalment?
Here the balloon is the principal remaining after all scheduled instalments through the balloon month, including that month's regular payment. It is an additional amount. A contract may express the final combined payment differently, so compare the timing and components rather than only the label.
Is a balloon loan automatically an interest-only loan?
No. The regular payments here reduce principal using the longer amortisation schedule. Interest-only payments would instead leave the starting principal unchanged during that phase. Neither the balloon balance nor a future refinance is cancelled by having made every required monthly instalment.
Embed this tool
Free to use on any website. Paste the code where the tool should appear; the link under it lets readers open the full page.
<iframe src="https://toea.com/embed/balloon-loan-calculator" title="Balloon Loan Calculator" width="100%" height="1110" style="border:0;max-width:680px" loading="lazy"></iframe>
<p style="margin:4px 0 16px;font-size:13px"><a href="https://toea.com/balloon-loan-calculator">Balloon Loan Calculator</a> · TOEA</p>
<script>addEventListener("message",function(e){if(e.origin!=="https://toea.com"||!e.data||e.data.type!=="toea-embed-height")return;document.querySelectorAll("iframe").forEach(function(f){if(f.contentWindow===e.source)f.style.height=e.data.height+"px"})})</script>Free tool · runs in your browser · no account required