Enter the first three or four fields, then press the button to solve.
Easily calculate your monthly payment and balloon amount with our Balloon Payment Loan Calculator. This free tool is perfect for borrowers and financial professionals looking to estimate loan costs that involve a final balloon payment. Whether you’re financing a car, business equipment, or a mortgage, this calculator helps you understand your financial obligation before signing the dotted line.
To get started, simply enter the following values:
Loan Amount ($): The principal amount you are borrowing.
Example: $55,555
# of Months (before balloon payment): The loan term or number of payments before the balloon payment is due.
Example: 34 months
Annual Interest Rate (Compounded Monthly) (%): The yearly interest rate charged by the lender, divided into monthly compounding.
Example: 12%
Monthly Payment (Principal & Interest): This will be automatically calculated based on the above values, or you can input your desired monthly payment to find the balloon payment.
Once you’ve entered at least three fields, press the “Calculate” button to compute either the monthly payment or the balloon payment, depending on your input.
Accurate amortization for balloon payment loans
Real-time monthly and balloon payment calculation
Clear and user-friendly layout
Optional Amortization Schedule for detailed breakdown
“Clear All” button to reset your values easily
Understanding the financial commitment of a balloon loan is critical. This calculator helps you:
To calculate your balloon loan payments, simply enter:
Loan Amount: Total principal you’re borrowing
Number of Months: Loan duration until the balloon is due
Interest Rate (%): Annual interest rate, compounded monthly
Monthly Payment (optional): If known, enter it to calculate the balloon
Our calculator will automatically show:
The monthly principal & interest payment
The balloon payment due at the end of the term
The total amount paid over the loan’s life
You can also view a complete amortization schedule with month-by-month payment breakdowns.
Budget early for the balloon payment
Set up a savings plan from month one
Explore refinancing options well before the term ends
Consult a financial advisor for large or commercial loans
| Loan Type | Monthly Payment | Final Balloon Payment | Total Interest | Best For |
|---|---|---|---|---|
| Traditional Loan | Higher | None | Higher | Long-term financing |
| Balloon Payment Loan | Lower | Yes (large lump sum) | Lower | Short-term or refinance plans |
| Interest-Only Loan | Lowest | Yes (entire principal) | Highest | Short-term investment |
Planning is essential with balloon loans. Set reminders well in advance of the due date, and start saving early if you intend to pay off the balloon in cash. Alternatively, speak with your lender about refinancing options before the loan matures. Having a plan in place can help you avoid financial surprises down the road.
Our calculator also provides an optional amortization schedule that outlines how much of each payment goes toward interest and principal. This can help you track your progress, plan ahead, and better understand how much equity you’re building over time.
A balloon payment is a large, lump-sum payment that is due at the end of a loan term. While monthly payments cover some of the loan's interest and principal, the balloon payment settles the remaining balance in full.
Balloon loans are suitable for borrowers who:
Expect to sell or refinance the asset before the balloon payment is due
Need lower monthly payments initially
Are comfortable managing a large payment at the end of the term
Yes, it can be. If you’re unable to make the final balloon payment or refinance the loan, you could face default, repossession, or foreclosure, depending on the type of loan.
Unlike regular loans, balloon loans do not fully amortize over the term. This means monthly payments are lower, but a large final payment is required.
You can use a balloon loan calculator by entering your loan amount, term, interest rate, and monthly payment to find the balloon payment amount.
People often choose balloon loans for lower monthly payments and when they plan to sell, refinance, or pay off the loan before the balloon is due.
Yes. Many borrowers refinance the balloon payment before it comes due to avoid paying the lump sum out of pocket.
Interest paid may be tax-deductible, but the balloon payment itself is not. Always consult a tax professional for details.
You may face default, foreclosure, or repossession depending on the asset. Lenders may also report the nonpayment to credit bureaus.
Yes, though terms and consumer protection laws may vary. Always read your loan agreement carefully.
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