Balloon Loan Calculator
See the regular payments and the lump sum still owed at the end of a balloon loan.
About the Balloon Loan Calculator
Enter the loan amount, the rate, the term the payments are based on and when the balloon falls due. The calculator gives the monthly payment, the balloon amount and the interest paid before it.
A balloon loan's payments are worked out as if over a long term, but the remaining balance falls due early in one large payment. Borrowers usually refinance or sell the asset to pay it.
The formula
Balloon = balance after b payments of a loan amortized over N months
Worked example
30,000 at 7%, payments based on 7 years, balloon after 3 years
- Monthly payment: 452.78 for 36 months
- Then a balloon of 18,908.20, 63% of the loan
- Interest paid before the balloon: about 5,208
Questions people ask
Why choose one?
Lower payments now, for example on business vehicles or commercial property.
Is a car PCP deal a balloon loan?
Similar: the final “optional payment” is a balloon you can pay, refinance or avoid by returning the car.