Loan Calculators

Balloon Loan Calculator

A balloon loan can be an excellent option for many borrowers. Use this calculator to see how a balloon loan might work for you.

Inputs

Solve for ?

Loan amount

Interest rate

Amortized over (years) ?

Balloon due in (years)

Estimates only. Adjust any value to recalculate instantly.

Results

Balloon payment due $136,721 after 7 years of $997.95/mo payments

Monthly payment $997.95

Loan amount $150,000

Balloon payment $136,721

Interest paid by then $70,549

At the balloon date

Balloon owed $137k
Principal paid $13k

Loan balance Balance

Because the payment is based on a 30-year schedule, only a small share of principal is paid before the $136,721 balloon comes due. Plan to refinance, sell or pay the lump sum.

Yearly schedule to the balloon dateView table

Year	Paid	Principal	Interest	Balance
1	$11,975	$1,524	$10,452	$148,476
2	$11,975	$1,634	$10,342	$146,842
3	$11,975	$1,752	$10,223	$145,090
4	$11,975	$1,879	$10,097	$143,212
5	$11,975	$2,014	$9,961	$141,197
6	$11,975	$2,160	$9,815	$139,037
7	$11,975	$2,316	$9,659	$136,721

How the balloon loan calculator works

Payments are calculated on a long amortization schedule to keep them low, but the loan is due in full much sooner. The calculator shows both the low monthly payment and the large balloon balance owed at the end.

Worked example

Worked example: with loan amount of $150,000, monthly payment of $1,000 and interest rate of 7.00%, the balloon loan calculator shows balloon payment due of $136,721.

Monthly payment: $997.95
Loan amount: $150,000
Balloon payment: $136,721
Interest paid by then: $70,549

The formula

Payment is set on the long schedule: P × r ÷ (1 − (1 + r)⁻ᴺ). The balloon is the balance remaining after the (shorter) actual term of payments.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the balloon loan calculator

What is a balloon payment?

A large lump sum due at the end of a balloon loan, because the low payments were based on a longer schedule and barely touched the principal.

How do people handle the balloon?

Usually by refinancing the remaining balance, selling the asset, or having cash ready. Going in without a plan for the balloon is the main risk.

Why choose a balloon loan?

For the low monthly payment during the term — attractive to businesses or buyers who expect to refinance or sell before the balloon comes due.

Is the Balloon Loan Calculator free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.

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