Balloon Mortgage Calculator
A balloon mortgage can be an excellent option for many home buyers, use this calculator to see if a balloon mortgage might fit your needs.
How the balloon mortgage calculator works
Payments are set on a long amortization schedule, which keeps them low, but the loan must be repaid in full at the end of a much shorter term. The calculator shows that low monthly payment alongside the large balloon balance still owed when the term ends.
Worked example: with loan amount of $280,000, interest rate of 6.00% and amortized over (years) of 30, the balloon mortgage calculator shows balloon payment due of $250,990.
- Monthly payment
- $1,678.74
- Balloon due
- $250,990
- Principal paid by then
- $29,010
- Interest paid by then
- $112,005
The formula
Payment = P × r ÷ (1 − (1 + r)⁻ᴺ) on the long schedule; 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.
Questions about the balloon mortgage calculator
What is a balloon mortgage?
A home loan with low payments based on a long schedule but a large lump-sum balance due after a short term, usually 5–7 years. It must be refinanced, sold, or paid off then.
Why would I choose a balloon mortgage?
For the low initial payment, if you expect to sell or refinance before the balloon comes due. The risk is being unable to do either when the deadline arrives.
How big is the balloon payment?
Most of the original balance, because the long-schedule payments barely touch the principal. The calculator shows the exact amount owed at your chosen balloon date.
Is the Balloon Mortgage 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.