# Balloon Payment Calculator

URL: https://speedycalculator.com/calculators/finance/balloon-payment/
Last updated: 2026-10-25

> The balloon payment calculator works out the regular payment and the final balloon payment on a loan that is amortized over a long schedule but due early – for example payments based on 30 years with the balance due after 7.

## Inputs

- Loan amount
- Interest rate (%)
- Compounding frequency
- Amortization period (years)
- Balloon due after (years)

## Results

- Monthly payment
- Balloon payment
- Total of payments (incl. balloon)
- Total interest
- Balloon as a share of the loan

## Formula

```
Payment = pmt(i, amortization months, loan)
Balloon = loan balance after the balloon term = L(1 + i)^k − payment × ((1 + i)^k − 1) ÷ i
Total paid = payment × k + balloon
```

## Explanation

Balloon loans keep payments low, which is common in commercial real estate and some car loans, but you must repay, refinance or sell when the balloon comes due. If rates rise or values fall, refinancing can be hard.

### How to use the Balloon Payment Calculator

- **Loan amount**
- **Interest rate**
- **Compounding frequency**
- **Amortization period**
- **Balloon due after**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, interest rate, compounding, the amortization period and when the balloon is due.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyInterest rateIn %Compounding frequencyChoose one: Yearly, Semi-annually, Quarterly, Monthly …Amortization periodIn yearsBalloon due afterIn years

### What each result means

- **Monthly payment** = pmt([Monthly rate], [Amortization period]×12, [Loan amount])
- **Balloon payment** = max([Balloon payment]([Loan amount], [Monthly rate], [Amortization period]×12, [Balloon due after]×12), 0)
- **Total of payments (incl. balloon)** = [Monthly payment]×[Balloon due after]×12 + [Balloon payment]
- **Total interest** = [Total of payments (incl. balloon)] - [Loan amount]
- **Balloon as a share of the loan** = [Balloon payment]÷[Loan amount]×100

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountBalloon payment250,000226,040.61375,000339,060.92500,000452,081.22625,000565,101.53750,000678,121.841,000,000904,162.45

## Worked example

Inputs — Loan amount: $500,000; Interest rate: 6.5 %; Compounding frequency: Monthly; Amortization period: 30 years; Balloon due after: 7 years.

Results — Monthly payment = $3,160.34; **Balloon payment = $452,081.22**; Total of payments (incl. balloon) = $717,549.79; Total interest = $217,549.79; Balloon as a share of the loan = 90.42 %.

## FAQ

**What is a balloon payment?**
A large lump sum due at the end of a loan whose regular payments don't fully repay it.

**Why choose a balloon loan?**
Lower payments – useful if you'll sell or refinance before it's due.

**What happens if I can't pay the balloon?**
You'd need to refinance or sell; otherwise you risk default.

**What formula does the Balloon Payment Calculator use?**
Payment = pmt(i, amortization months, loan).