Loan Calculator with Balloon Payment
Low payments, big end balance.
Balloon payment math runs locally — no server involvedYour payment breakdown appears here
Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.
How to use
A balloon loan keeps the monthly payment low by amortizing over a long term, then demands the remaining balance in one big payment at the balloon date. It is common in auto and business lending where the borrower plans to sell or refinance before the balloon arrives.
How to use
- Enter the loan amount, APR and the full term in years.
- Enter when the balloon is due — the years into the loan it lands.
- Press Calculate to see the low monthly payment and the balloon amount.
Example
A $30,000 loan at 6% amortized over 7 years has a payment of about $438. If the balloon is due after 5 years, you owe the remaining balance — roughly $9,900 — as a lump. You paid low for 60 months, then must find the money or refinance.
Formula
Payment = PMT over the full term; balloon = remaining balance at the balloon month, computed with the standard remaining-balance formula.
The real risk
The balloon is the whole point and the whole danger. If the asset depreciated faster than the balance fell — common with vehicles — you owe more than it is worth at the balloon date, and refinancing may not be available.
Who it suits
Balloon structures fit borrowers who know they will sell the asset before the balloon, or who expect rates to fall. For everyone else, a standard loan is usually safer.
Auto balloon reality
Balloon auto loans pair a low payment with a large final balance. If you plan to trade the vehicle at the balloon date, its trade-in value must cover the balance — check current values before committing, because depreciation can leave the balance larger than the car is worth.
FAQ
What happens at the balloon date?
You pay the lump, refinance the remaining balance, or sell the asset to cover it.
Why is the monthly payment so low?
The payment amortizes over the full term, so most of the balance remains — that is the trade-off for the low payment.
Is a balloon risky?
Yes, especially if the asset depreciates faster than the balance falls; you can end up underwater at the balloon date.
How is this different from a standard loan?
A standard loan is fully paid by the end of its term; a balloon leaves a large final balance to handle separately.
Reviewed by the LoanMath editorial team