Partially amortized loans – common in commercial real estate – have payments based on (say) a 25-year schedule but mature in 5 or 10 years, leaving a balloon to refinance or repay.
How to use the Partially Amortized Loan Calculator
- Loan amount
- Interest rate
- Amortization period
- Payment period (term)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the loan amount, interest rate, amortization period and payment period.
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
| Field | What to enter |
|---|---|
| Loan amount | Amount in your currency |
| Interest rate | In % |
| Amortization period | In years |
| Payment period (term) | In years |
What each result means
- Monthly payment = pmt([Interest rate]÷1200, [Amortization period]×12, [Loan amount])
- Paid during the payment period = [Monthly payment]×[Payment period (term)]×12
- Balloon payment = max([Balloon payment]([Loan amount], [Interest rate]÷1200, [Amortization period]×12, [Payment period (term)]×12), 0)
- Total interest = [Paid during the payment period] + [Balloon payment] – [Loan amount]
- Total paid = [Paid during the payment period] + [Balloon payment]
Example values
How the main result changes when Loan amount changes and everything else stays at the example values above:
| Loan amount | Balloon payment |
|---|---|
| 500,000 | 390,385.43 |
| 750,000 | 585,578.15 |
| 1,000,000 | 780,770.86 |
| 1,250,000 | 975,963.58 |
| 1,500,000 | 1,171,156.3 |
| 2,000,000 | 1,561,541.73 |
Formula
Payment = pmt(i, amortization months, L)Balloon = bal(L, i, amortization months, payment months)Total = payment × payment months + balloonWorked example
Inputs — Loan amount: $1,000,000; Interest rate: 6.75 %; Amortization period: 25 years; Payment period (term): 10 years.
Results — Monthly payment = $6,909.12; Paid during the payment period = $829,093.83; Balloon payment = $780,770.86; Total interest = $609,864.69; Total paid = $1,609,864.69.
Frequently asked questions
What is a partially amortized loan?
A loan whose payments don't fully repay it by maturity, leaving a balloon.
Why are they used?
They keep payments lower than a fully amortizing short loan.
What's the risk?
Having to refinance the balloon at a higher rate or lower property value.
What formula does the Partially Amortized Loan Calculator use?
Payment = pmt(i, amortization months, L).