Balloon Payment worksheet

1. Balloon payment due: $250,000.00

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

   $k$$=8\times 12$$=96$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$250,000.00}\times 0.00566667$$=\mathrm{\$1,416.67}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$250,000.00}$

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

   $\mathrm{\$1,416.67}\times 96+\mathrm{\$250,000.00}-\mathrm{\$250,000.00}$$=\mathrm{\$136,000.00}$

2. Balloon payment due: $178,076.68

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

   $k$$=6\times 12$$=72$

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

   $n$$=26\times 12$$=312$

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

   $i$$=\frac{0.064}{12}$$=0.00533333$

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

   $\frac{\mathrm{\$200,000.00}\times 0.00533333}{1-{\left(1+0.00533333\right)}^{\mathrm{-312}}}$$=\mathrm{\$1,317.23}$

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

   ${\left(1+0.00533333\right)}^{72}$$=1.46664815$

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

   $\mathrm{\$200,000.00}\times 1.46664815-\mathrm{\$1,317.23}\times \frac{1.46664815-1}{0.00533333}$$=\mathrm{\$178,076.68}$

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

   $\mathrm{\$1,317.23}\times 72+\mathrm{\$178,076.68}-\mathrm{\$200,000.00}$$=\mathrm{\$72,917.16}$

3. Balloon payment due: $250,000.00

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

   $k$$=6\times 12$$=72$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$250,000.00}\times 0.0065$$=\mathrm{\$1,625.00}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$250,000.00}$

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

   $\mathrm{\$1,625.00}\times 72+\mathrm{\$250,000.00}-\mathrm{\$250,000.00}$$=\mathrm{\$117,000.00}$

4. Balloon payment due: $205,000.00

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

   $k$$=7\times 12$$=84$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$205,000.00}\times 0.00583333$$=\mathrm{\$1,195.83}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$205,000.00}$

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

   $\mathrm{\$1,195.83}\times 84+\mathrm{\$205,000.00}-\mathrm{\$205,000.00}$$=\mathrm{\$100,450.00}$

5. Balloon payment due: $350,000.00

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

   $k$$=8\times 12$$=96$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$350,000.00}\times 0.00458333$$=\mathrm{\$1,604.17}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$350,000.00}$

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

   $\mathrm{\$1,604.17}\times 96+\mathrm{\$350,000.00}-\mathrm{\$350,000.00}$$=\mathrm{\$154,000.00}$

6. Balloon payment due: $280,000.00

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

   $k$$=7\times 12$$=84$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$280,000.00}\times 0.0055$$=\mathrm{\$1,540.00}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$280,000.00}$

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

   $\mathrm{\$1,540.00}\times 84+\mathrm{\$280,000.00}-\mathrm{\$280,000.00}$$=\mathrm{\$129,360.00}$

7. Balloon payment due: $280,000.00

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

   $k$$=7\times 12$$=84$

2. Each interest-only payment is one month of interest on the full loan, with nothing toward the loan itself

   $\mathrm{\$280,000.00}\times 0.00516667$$=\mathrm{\$1,446.67}$

3. No principal is repaid along the way, so the balloon is the whole loan amount

   $\mathrm{balloon}$$=\mathrm{\$280,000.00}$

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

   $\mathrm{\$1,446.67}\times 84+\mathrm{\$280,000.00}-\mathrm{\$280,000.00}$$=\mathrm{\$121,520.00}$

8. Balloon payment due: $137,375.18

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

   $k$$=8\times 12$$=96$

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

   $n$$=28\times 12$$=336$

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

   $i$$=\frac{0.06}{12}$$=0.005$

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

   $\frac{\mathrm{\$160,000.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-336}}}$$=\mathrm{\$984.20}$

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

   ${\left(1+0.005\right)}^{96}$$=1.61414271$

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

   $\mathrm{\$160,000.00}\times 1.61414271-\mathrm{\$984.20}\times \frac{1.61414271-1}{0.005}$$=\mathrm{\$137,375.18}$

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

   $\mathrm{\$984.20}\times 96+\mathrm{\$137,375.18}-\mathrm{\$160,000.00}$$=\mathrm{\$71,858.22}$

9. Balloon payment due: $265,347.37

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

   $k$$=6\times 12$$=72$

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

   $n$$=26\times 12$$=312$

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

   $i$$=\frac{0.06}{12}$$=0.005$

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

   $\frac{\mathrm{\$300,000.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-312}}}$$=\mathrm{\$1,901.03}$

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

   ${\left(1+0.005\right)}^{72}$$=1.43204428$

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

   $\mathrm{\$300,000.00}\times 1.43204428-\mathrm{\$1,901.03}\times \frac{1.43204428-1}{0.005}$$=\mathrm{\$265,347.37}$

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

   $\mathrm{\$1,901.03}\times 72+\mathrm{\$265,347.37}-\mathrm{\$300,000.00}$$=\mathrm{\$102,221.60}$

10. Balloon payment due: $333,233.23

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

   $k$$=5\times 12$$=60$

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

   $n$$=38\times 12$$=456$

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

   $i$$=\frac{0.052}{12}$$=0.00433333$

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

   $\frac{\mathrm{\$350,000.00}\times 0.00433333}{1-{\left(1+0.00433333\right)}^{\mathrm{-456}}}$$=\mathrm{\$1,761.96}$

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

   ${\left(1+0.00433333\right)}^{60}$$=1.29620179$

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

   $\mathrm{\$350,000.00}\times 1.29620179-\mathrm{\$1,761.96}\times \frac{1.29620179-1}{0.00433333}$$=\mathrm{\$333,233.23}$

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

   $\mathrm{\$1,761.96}\times 60+\mathrm{\$333,233.23}-\mathrm{\$350,000.00}$$=\mathrm{\$88,950.76}$