Amortizing Balloon Loan Calculator
Balloon loans offer lower monthly payments by deferring most of the principal to a final lump-sum payment. Enter your loan details below to see your monthly payment, the size of the balloon payment, and how your balance declines each year until it comes due.
About this calculator
Calculate your monthly payment on a balloon loan and see the lump-sum balloon payment due at the end of the term, with a year-by-year balance breakdown.
Frequently Asked Questions
What is a balloon loan?
A balloon loan has payments calculated on a longer amortization schedule (like 30 years) but requires the entire remaining balance to be paid off in a single lump sum after a much shorter term, such as 5-10 years.
Why choose a balloon loan?
Balloon loans can offer lower monthly payments than a fully amortizing loan of the same term, which can help with cash flow, but they carry the risk of needing to refinance or pay a large sum when the balloon comes due.
What happens if I can't pay the balloon amount?
Most borrowers refinance the remaining balance into a new loan or sell the asset before the balloon payment is due. Failing to pay or refinance can result in default.