Balloon Payment Calculator
Work out the monthly payment on a loan that ends with a large final balloon payment.
Enter your details below.
How to use
- Enter the loan amount and the balloon payment due at the end.
- Enter the annual interest rate and the term in months.
- Press Calculate to see the monthly payment and the total interest.
About this tool
In a balloon loan, the regular payments are calculated as if only part of the loan is being repaid, and the remaining balloon amount is due in one lump sum at the end. The calculator discounts the balloon back to today's value, subtracts it from the loan, and applies the standard loan formula to the rest, so the monthly payment is lower than a fully repaid loan but a large sum remains due.
Frequently asked questions
Why is the monthly payment lower?
Because the payments only repay part of the loan. The rest is deferred to the balloon payment, so you pay less each month but owe a large amount at the end.
What happens at the end of the term?
You must pay the balloon in full, refinance it, or sell the asset to cover it, so plan for that sum well before it falls due.