Balloon Loan Calculator

Use our free balloon loan calculator to estimate monthly payments and the final balloon payment. A balloon loan has a shorter term than its amortization schedule, requiring a large lump sum at the end.

Financial

Currency

Loan Amount

Annual Interest Rate (%)

Amortization Term (years)

years

Balloon Due After (years)

years

Formula

A balloon loan has payments calculated on a longer amortization schedule but requires full repayment (the balloon payment) after a shorter period. This is common in commercial real estate and some business loans.

M = P[r(1+r)^n] / [(1+r)^n - 1], Balloon = remaining balance at balloon term

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the total loan amount.
2Enter the annual interest rate.
3Set the amortization term (the schedule used to calculate payments).
4Set the balloon term (when the remaining balance is due).
5The calculator shows the monthly payment and the balloon amount.

Examples

$200,000, 6%, 30yr amortization, balloon due in 7 years

1.Monthly payment amortized over 30 years = $1,199.10
2.After 84 payments (7 years), remaining balance ≈ $179,000
3.Balloon payment = $179,000 due at end of year 7

Result: $1,199.10

Frequently Asked Questions

A large lump sum payment due at the end of a balloon loan, representing the remaining principal balance.

Balloon loans have lower monthly payments than fully amortizing loans, useful for short-term financing or when you expect to sell or refinance.

You may need to refinance the loan, sell the asset, or negotiate an extension with the lender.

Balloon terms are typically 5-10 years for commercial loans and 5-7 years for residential balloon mortgages.

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Balloon Loan Guide

CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

A large lump sum payment due at the end of a balloon loan, representing the remaining principal balance.

Balloon loans have lower monthly payments than fully amortizing loans, useful for short-term financing or when you expect to sell or refinance.

You may need to refinance the loan, sell the asset, or negotiate an extension with the lender.

Balloon terms are typically 5-10 years for commercial loans and 5-7 years for residential balloon mortgages.

Balloon Loan Calculator

Formula

How It Works

Examples

$200,000, 6%, 30yr amortization, balloon due in 7 years

Frequently Asked Questions

What is a balloon payment?

Why choose a balloon loan?

What happens if I can't make the balloon payment?

What is a typical balloon term?

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Balloon Loan Calculator

Formula

How It Works

Examples

$200,000, 6%, 30yr amortization, balloon due in 7 years

Frequently Asked Questions

What is a balloon payment?

Why choose a balloon loan?

What happens if I can't make the balloon payment?

What is a typical balloon term?

Related Calculators

Related Articles