Finance Calculators

Balloon Payment Calculator

Calculate the monthly payment and final lump-sum balloon payment on a loan that is amortized over a longer term than it is held.

Monthly payment —

Balloon payment due —

About the Balloon Payment Calculator

A balloon loan is amortized as if it will be paid off over a long period (like 30 years), but the borrower must pay off the remaining balance in one lump sum after a much shorter term.

Formula: Monthly payment uses the standard amortization formula over the full amortization period; the balloon payment is the remaining loan balance after the shorter balloon term has elapsed.

Balloon loans offer lower monthly payments than a fully amortizing loan of the same term, but require refinancing, selling the asset, or having cash on hand to cover the large final payment.