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Balloon Loan Calculator

Work out the payment on a balloon loan and the lump sum that falls due on the balloon date.

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Free · No sign-up · Runs in your browser

A balloon loan sets payments as though the loan runs for a long term, then demands the remaining balance in full on a much earlier date. The payment is comfortable; the lump sum at the end is not.

This calculator reports both: the monthly payment based on the amortisation term, and the balance that falls due on the balloon date - which is frequently most of what was originally borrowed.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Balloon payment due

$271,249

Monthly payment

$1,896

Balloon as share of the original loan
90.42%
Principal repaid before the balloon
$28,751
Interest paid before the balloon
$130,530
Total paid before the balloon
$159,281
Total cost including the balloon
$430,530

The balloon amount is the balance still outstanding on the balloon date. It has to be repaid, refinanced or the property sold.

Refinancing the balloon is not guaranteed: it depends on rates, credit and property value at that future date.

Balance until the balloon date

YearPrincipal paidInterest paidRemaining balance
1$3,353$19,401$296,647
2$3,578$19,177$293,069
3$3,817$18,937$289,252
4$4,073$18,681$285,179
5$4,346$18,409$280,833
6$4,637$18,118$276,196
7$4,947$17,807$271,249

How to use the balloon loan calculator

  1. Enter the loan amount and the rate.
  2. Enter the amortisation term the payment is calculated on.
  3. Enter the balloon date in years from the start.
  4. Read the balloon amount and what share of the original loan it represents.

What people use this for

  • Understanding what falls due at the end of a balloon loan.
  • Comparing a balloon structure against a fully amortising loan.
  • Planning for a refinance or sale before the balloon date.
  • Evaluating a commercial or seller-financed loan.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A seven-year balloon on a 30-year schedule

$300,000 at 6.5%, payments on a 30-year amortisation, balloon due after 7 years.

Balloon payment due
$271,249
Monthly payment
$1,896
Balloon as share of the original loan
90.42%

A five-year balloon on a 20-year schedule

The same amount amortised faster, leaving a smaller balloon.

Balloon payment due
$256,767
Monthly payment
$2,237
Total cost including the balloon
$390,971

The balloon is usually most of the loan

On a thirty-year amortisation, seven years of payments repay roughly ten percent of the principal. The balloon is therefore around ninety percent of what was borrowed, due in a single payment.

That is the structure working as designed - the low payment is purchased by not repaying the debt - and it is the reason a balloon loan is a plan rather than a product. The plan has to exist before the loan is taken.

Refinancing is not guaranteed

The usual intention is to refinance or sell before the balloon date. Whether that is possible depends on interest rates, credit and asset value at a date several years away, none of which can be known in advance.

If none of those work out, the balance is due anyway. Anyone taking a balloon structure should have a second answer to the question of what happens on that date.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • The payment is calculated on the amortisation term. The balloon is the scheduled balance at the balloon date.
  • Total cost is payments made before the balloon plus the balloon itself.
  • Refinancing costs, prepayment terms and rate changes are not modelled.
  • Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Why would anyone take a balloon loan?

Lower payments for a defined period, usually where a sale, refinance or income change is expected before the balloon date. Commercial and seller-financed loans use the structure routinely.

Can the balloon be extended?

Sometimes, at the lender’s discretion and frequently at a cost. It is not a right unless the agreement says so.

How is this different from interest-only?

Interest-only repays nothing during the period. A balloon loan repays some principal, so the lump sum is smaller than the original loan - though usually not by much.

What happens if I cannot pay the balloon?

The loan is in default and the lender can enforce. That is why a second plan matters more on this structure than on any other.

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