Balloon Loan CalculatorFree online financial calculator — instant results, no sign-up
Calculate payments and the remaining balloon after a shorter payment term.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Balloon Loan Calculator
The Balloon Loan Calculator estimates a mortgage's monthly payment using a full amortization term, then calculates the balance remaining after a shorter number of scheduled payments. It helps you see both the regular payment obligation and the lump-sum balloon that remains due if the loan matures before it is fully amortized.
- Principal ($)
- The starting loan balance in dollars, with a default of $300,000.
- Annual rate (%)
- The fixed nominal annual interest rate expressed as a percentage, with a default of 6%.
- Amortization term (months)
- The number of monthly payments used to calculate a fully amortizing payment, with a default of 360 months.
- Payments before balloon (months)
- The number of scheduled monthly payments made before calculating the remaining balloon balance, with a default of 60 months.
Formula and method
r = i / 1200; M = P × r / [1 − (1 + r)^(−n)]; B = P × (1 + r)^k − M × [(1 + r)^k − 1] / r. If i = 0, use M = P / n and B = P − k × M.
- PStarting principal in dollars.
- iAnnual interest rate entered as a percentage, such as 6 for 6%.
- rMonthly interest rate as a decimal.
- nFull amortization term in months.
- kNumber of scheduled monthly payments made before the balloon balance is measured.
- MMonthly principal-and-interest payment in dollars.
- BRemaining principal balance in dollars immediately after the kth scheduled payment.
Convert the annual percentage rate to a monthly decimal rate, then calculate the monthly payment over the full amortization term. Apply that payment to the balance for the specified number of months, with interest accruing monthly and payments made at month-end. Keep full precision during the calculation and round the displayed results to cents. With P = $300,000, i = 6%, n = 360, and k = 60, the monthly payment is $1,798.65 and the balloon after scheduled payments is $279,163.07.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Principal300000 $
- Annual rate6 %
- Amortization term360 months
- Payments before balloon60 months
Results
- Monthly payment$1,798.65
- Balloon after scheduled payments$279,163.07
How to use the Balloon Loan Calculator
- 1Enter the starting principal in dollars; the default is 300000.
- 2Enter the annual interest rate as a percentage; the default is 6.
- 3Set the amortization term used to determine the monthly payment; the default is 360 months.
- 4Enter how many scheduled payments occur before the balloon; the default is 60 months.
- 5Calculate and review the monthly payment and remaining balloon together to assess the regular payment and eventual lump-sum obligation.
Reading your result
Monthly payment is the scheduled principal-and-interest payment based on the full amortization term: $1,798.65 with the default inputs. Balloon after scheduled payments is the principal still outstanding immediately after the specified payments: $279,163.07 after 60 payments. This balloon is additional to those scheduled payments, not a total that includes them. If the balloon is due on the same date as the last scheduled payment, both obligations must be accounted for.
Limitations
The calculation assumes a fixed interest rate, equal monthly periods, on-time month-end payments, and no extra principal payments. Use a positive principal and amortization term, a nonnegative rate, and a whole-number payment count between zero and the amortization term; a balloon structure normally has fewer payments than the full amortization term. Results exclude taxes, insurance, mortgage insurance, fees, penalties, and any interest accruing between the last scheduled payment and the actual payoff date. Actual loan schedules may differ because lenders round payments to cents or use different interest-accrual conventions. This is an estimate, not a lender payoff quote, and refinancing availability is not guaranteed.
Common questions
Why use a 360-month amortization term if the balloon comes after 60 payments?+
The 360-month term determines the size of each monthly payment, while the 60-payment setting determines when the remaining balance is measured. The smaller payment associated with the longer amortization schedule does not repay the loan by the balloon date.
Does the $279,163.07 balloon include the 60th monthly payment?+
No. It is the balance remaining after the 60th scheduled payment has been applied. The scheduled payment and the balloon are separate obligations, even if both are due on the same date.
Why is the balloon still so large after 60 payments?+
With the default 6% rate and 360-month amortization, much of each early payment goes toward interest rather than principal. As a result, a $300,000 starting balance still leaves $279,163.07 after 60 scheduled payments.
Will increasing the number of payments before the balloon lower the monthly payment?+
No. Keeping principal, rate, and amortization term unchanged keeps the monthly payment unchanged. Making more scheduled payments before the balloon reduces the remaining balance instead.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.