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Balloon calculator

Balloon Payment Calculator

Model a loan with payments based on one amortization period but a final balance due sooner.

FormulaBalloon = principal remaining after scheduled payments through the balloon date
Calculator

Balloon Payment Calculator

Enter your numbers and the result updates straight away.

Results

Outputs

Monthly payment
Waiting for valid inputs
Balloon payment
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Principal repaid before balloon
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Planning estimate only. Verify assumptions before making a financial decision.

Worked example

A ten-year amortization with a five-year balloon leaves the unpaid principal due at the end of year five.

Methodology

How this calculation works

The payment is based on the full amortization term and the balance is rolled forward to the balloon month.

How to interpret the result

Ensure there is a credible repayment or refinance plan for the final balance.

Limitations

Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.

Browse more Business Finance Calculators.

Formula and example
Balloon = principal remaining after scheduled payments through the balloon date

A ten-year amortization with a five-year balloon leaves the unpaid principal due at the end of year five.

Common use cases
  • Structure seller notes.
  • Measure refinancing exposure.
  • Compare balloon and fully amortizing offers.
Balloon Payment Calculator FAQ

Is the balloon payment an extra fee?

No. It is the unpaid principal remaining when the note matures before the full amortization period ends.

Can the balloon be refinanced?

Possibly, but refinancing depends on future rates, credit, collateral, cash flow, and lender appetite.

How is Balloon calculated?

The payment is based on the full amortization term and the balance is rolled forward to the balloon month.

How should I interpret the result?

Ensure there is a credible repayment or refinance plan for the final balance.