Skip to content
Calcapedia
Menu
Money

Balloon Payment Calculator

Find the lump sum you'll still owe at the end of a balloon loan, plus the regular monthly payment and the total interest.

Level: Grades 11–12

  • Common Core standard HSA.SSE.B.4Derive the formula for the sum of a finite geometric series (when the common ratio is not 1), and use the formula to solve problems.
Printable worksheet

Balloon Payment Calculator

Know the answer you need? Pick an input to work backward.

Inputs
Regular payments

The longer schedule the payment is based on, for example 30 years.

When the remaining balance must be paid in full.

Result

Balloon payment due

$226,040.61

After 84 payments of $1,580.17, a balloon of $226,040.61 is due.

Regular monthly payment
$1,580.17
Regular payments before the balloon
84
Total interest
$108,774.90
Total paid including the balloon
$358,774.90
Principal repaid before the balloon
$23,959.39
How the loan is repaid
  • Regular payments$132,734.2837%
  • Balloon$226,040.6163%

See the step-by-step solution ↓

Step-by-step solution

  1. Count the regular monthly payments (k) before the balloon: 12 for every year

    k=7×12=84

  2. Count the payments (n) in the long schedule the payment is based on: 12 for every year

    n=30×12=360

  3. Find the monthly rate i: the yearly rate as a decimal, divided by 12, because interest is charged each month

    i=0.06512=0.00541667

  4. Find the regular payment: the same amount each month that would pay off the loan over the long schedule

    $250,000.00×0.005416671−(1+0.00541667)−360=$1,580.17

  5. Work out how much $1 grows at this rate over the k months before the balloon

    (1+0.00541667)84=1.57423925

  6. The balloon is what the loan P would grow to, minus what your payments would grow to over the same months

    $250,000.00×1.57423925−$1,580.17×1.57423925−10.00541667=$226,040.61

  7. Add up every regular payment and the balloon, then subtract what you borrowed. What's left is interest

    $1,580.17×84+$226,040.61−$250,000.00=$108,774.90

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out how big the final lump-sum payment on a balloon loan will be, along with your monthly payment. A balloon loan keeps monthly payments low because they don't pay off the whole loan. The payments are usually figured as if the loan ran for a long time, often 30 years for property. But everything still owed comes due much sooner, for example after 5 or 7 years. That final lump sum is the balloon. It's often far larger than any payment before it.

This calculator finds the size of that balloon. You can choose payments that cover principal (the amount borrowed) and interest, based on a long payoff schedule. Or choose interest-only payments, where none of the loan itself is repaid until the end. Enter the loan amount, the rate and when the balloon is due. You'll see the regular payment, the balloon, the principal repaid along the way and the total interest.

Where it's used

Why this math matters outside the classroom:

  • Commercial mortgages. A $100,000 loan at 6% with a 30-year schedule pays $599.55 a month and still owes about $89,639 when it comes due after 7 years.
  • Planning a refinance. Property owners estimate the balloon amount to know how much a new loan will need to cover at the end of the term.
  • Interest-only loans. With interest-only payments, the balloon at the end equals the full original principal because none of it was repaid.
  • Seller financing. Buyer and seller agree on a short term with a balloon so payments stay low while the property changes hands.

Grade level and standards: Grades 11–12; Common Core State Standards for Mathematics HSA.SSE.B.4. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Choose whether the regular payments include principal or cover interest only.
  2. Enter the loan amount and the yearly interest rate.
  3. For a loan that pays down principal (an amortizing loan), enter the long schedule the payment is based on, in years or months. This is the amortization period.
  4. Enter when the balloon is due. Then read the balloon payment, the monthly payment and the totals.

What the inputs mean

Regular payments
Interest-only loans repay none of the loan before the balloon, so the balloon equals the original loan amount.
Amortization period
The long schedule used only to set the payment size. It must be longer than the time until the balloon, or there'd be nothing left over.
Balloon due after
The time until the rest of the loan is due. The balloon is paid together with the last regular payment.

Formula and method

i = rate ÷ 100 ÷ 12;  n = amortization months;  k = months until the balloon
payment = P × i ÷ (1 − (1 + i)^(−n))
balloon = P × (1 + i)^k − payment × ((1 + i)^k − 1) ÷ i
interest-only: payment = P × i;  balloon = P
total interest = payment × k + balloon − P

P is the amount borrowed, and i is the monthly interest rate. n is the number of months in the long payoff schedule, and k is the number of months until the balloon.

The payment formula gives the same monthly amount that would pay off the loan over n months. The balloon formula finds what's still owed after k of those payments. It takes what the original loan would grow to at the loan rate. Then it subtracts what the payments would grow to over the same months.

At 0% interest, the payment is just P ÷ n, and the balloon is P minus k payments. For an interest-only loan, each payment covers exactly one month of interest. So the balance never moves until the balloon clears it.

Worked example

You borrow $250,000 at 6.5%, with payments based on a 30-year schedule and a balloon due after 7 years.

  1. k = 7 × 12 = 84 payments before the balloon; n = 30 × 12 = 360. Monthly rate i = 0.065 ÷ 12 ≈ 0.00541667.
  2. Regular payment: $250,000 × 0.00541667 ÷ (1 − 1.00541667^−360) ≈ $1,580.17.
  3. Growth factor: 1.00541667^84 ≈ 1.57423925.
  4. Balloon: $250,000 × 1.57423925 − $1,580.17 × (1.57423925 − 1) ÷ 0.00541667 ≈ $226,040.61.
  5. Total interest: $1,580.17 × 84 + $226,040.61 − $250,000 ≈ $108,774.90.

Result: After 84 payments of about $1,580.17, you still owe a balloon of about $226,040.61. Only about $23,959 of the loan is repaid along the way. With interest-only payments of $1,354.17 instead, the balloon would be the full $250,000.

Understanding the result

The balloon shows how much you'll need to pay, refinance or cover by selling the asset when the term ends. Compare it with what you expect to have at that point. Don't just compare it with the monthly payment you can afford today.

In the early years of a long schedule, most of each payment is interest. So the balloon is usually close to the original loan. A shorter payoff schedule raises the payment, but it cuts the balloon noticeably.

Assumptions and limitations

  • The rate is fixed. Payments are monthly, at the end of each month, and the stated yearly rate is divided by 12.
  • The balloon is due with the last regular payment, and it equals what's still owed at that point.
  • Amounts aren't rounded to the cent.
  • Fees, penalties for paying early, rate changes and refinancing costs aren't included.
  • Loans that recalculate the payment, allow extra payments or charge interest daily may give slightly different balances.
  • Refinancing when the balloon is due depends on rates and your credit at that time. This calculator doesn't predict either.

Frequently asked questions

Why is the balloon so large?

Because the payment is sized for a much longer loan. In the first several years of a long schedule, most of every payment is interest. So only a small part of the loan is repaid before the balloon comes due.

Is the balloon paid in addition to the last payment?

Yes, in this calculator. The balloon is what's left right after the last regular payment, and both are due at the same time. Some loan papers fold them into one combined final payment. The total is the same.

How can I make the balloon smaller?

Choose a shorter payoff schedule, add extra principal to your payments, or borrow less. Try different amortization periods here to see how each one changes the payment and the balloon.

What is the difference between amortizing and interest-only?

Amortizing payments include some principal. So the balance falls slowly, and the balloon is a little smaller than the loan. Interest-only payments cover just the interest, so you owe the whole amount at the end.

How this calculator is checked

Method: Remaining balance of a level-payment loan after k payments, B = P(1 + i)^k − PMT((1 + i)^k − 1)/i, with PMT from the standard amortization formula; interest-only balloon = principal. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

Embed this calculator

Put this Balloon Payment Calculator on your own website or blog for free. Paste this code where you want it to appear: