Balloon Payment Calculator

About this calculator

A balloon loan calculates its regular installment as if it were fully amortizing over a long term — often 25 or 30 years — while the loan actually matures much sooner, typically in 5 to 7 years. This calculator applies the standard amortization formula to find that monthly payment, then runs the amortization schedule forward to the maturity date to find the remaining principal balance, which becomes due as a single lump-sum balloon payment.

Commercial real estate lenders and sellers offering owner financing use balloon structures to keep monthly payments low for the borrower while limiting the lender's long-term interest rate exposure. Borrowers, mortgage brokers and real estate investors use this calculator to plan ahead for the balloon due date, since the loan typically needs to be refinanced or the property sold before that final payment comes due.