Balloon Payment Calculator

Calculate balloon payment amounts with our free Balloon Payment Calculator. Determine monthly payments, balloon amount, and total interest for balloon mortgages and loans.

Loan Information

Loan Amount ($)

Total amount borrowed

Annual Interest Rate (%)

Nominal annual interest rate

Loan Term (Years) Total amortization period

Balloon Term (Years) When balloon payment is due

Payment Frequency How often you make payments

Balloon Payment Type Payment structure during loan term

Additional Options

Show Calculation Breakdown

Balloon Payment Analysis Results

Loan Summary
Loan Amount	$0.00
Interest Rate	0%
Loan Term	0 years
Balloon Term	0 years
Payment Frequency	-
Payment Type	-

Payment Results

🎈 Balloon Payment Due at End of Year 5

$0.00

This is the lump-sum amount you must pay or refinance

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Balloon Payment Insights

Balloon Payment: A large lump-sum payment due at the end of a balloon loan term.
Lower Monthly Payments: Balloon loans offer lower monthly payments than fully amortizing loans.
Amortized Balloon: Payments calculated over the full loan term, but balloon due early.
Interest-Only Balloon: Only interest paid monthly; full principal due at balloon.

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What Is a Balloon Payment?

A balloon payment is a large, one-time payment that a borrower must make at the end of a loan term to clear the remaining loan balance. Instead of paying off the entire loan through regular monthly installments, the borrower makes smaller payments during the loan period and pays the remaining amount in one final payment.

A balloon loan is a type of loan structured this way. Unlike a traditional fully amortizing loan, where regular monthly payments gradually repay the entire loan by the end of the term, a balloon loan leaves a portion of the principal unpaid until the final payment is due.

For example, suppose you borrow $200,000 through a balloon loan. You make regular monthly payments throughout the loan term, but after your last scheduled installment, $50,000 of the loan balance is still unpaid. This remaining $50,000 is called the final balloon payment, which you must pay to settle the loan.

Because the final payment can be significantly larger than your regular monthly installments, it is important to plan ahead and make sure you can afford it when it becomes due.

How to Calculate the Balloon Payment

The balloon payment formula helps you calculate the large remaining loan balance due at the end of a specified period. The calculation depends on the loan amount, annual interest rate, total amortization period, balloon term, and payment frequency.

For a loan with regular amortized payments, you first calculate the periodic payment using:

M = P × R × (1 + R)^N ÷ (1 + R)^N − 1

Where:

P = Original loan amount
r = Interest rate per payment period
n = Total number of payments over the full loan term
M = Regular payment amount

Next, calculate the remaining loan balance after the balloon period:

B_k = P(1 + R)^k − M × (1 + R)^k − 1 ÷ r

Where:

Bₖ = Outstanding loan balance (balloon payment)
k = Number of payments made before the balloon payment is due
M = Regular payment amount
r = Interest rate per payment period

The remaining balance becomes the final balloon payment, assuming no additional fees, prepayments, or other adjustments.

Example: Balloon Payment Calculation

Suppose you borrow $200,000 at an annual interest rate of 6.50%, with a 30-year amortization period and a balloon payment due after 5 years. Payments are made monthly.

Step 1: Calculate the monthly interest rate and total payments.

r = 6.50% ÷ 12 = 0.00541667

n = 30 × 12 = 360

Step 2: Calculate the regular monthly payment.

Using the monthly payment formula:

M = 200000 × 0.00541667 × (1 + 0.00541667)³⁶⁰ ÷ (1 + 0.00541667)³⁶⁰ − 1

M = $1,264.14

Step 3: Calculate the number of payments made before the balloon payment.

k = 5 × 12 = 60

Step 4: Calculate the outstanding loan balance after 60 payments.

B₆₀ = 200000(1.00541667)⁶⁰

-1264.14 × (1.00541667)⁶⁰ - 1 ÷ 0.00541667

B₆₀ = $187,221.95

Balloon Payment Calculation Results

Loan Details	Amount
Loan Amount	$200,000.00
Annual Interest Rate	6.50%
Loan Term	30 years
Balloon Term	5 years
Monthly Payment	$1,264.14
Total Paid Before Balloon	$75,848.16
Total Repayment (including balloon)	$263,070.12
Total Interest	$63,070.12

As shown in this example, you pay $1,264.14 every month for the first five years, but the loan is not fully repaid. You still owe $187,221.95 at the end of year five. You must pay this amount in a lump sum or refinance the remaining balance.

Note: Calculations use the unrounded monthly payment internally. Displayed figures are rounded to two decimal places. The example assumes monthly compounding, no additional fees, and no early repayments.