Free balloon payment calculator for seller-financed, land, or car loans: the monthly payment and the lump sum due at the end, no sign-up.
Defaults to this month.
Try the seller-financing exampleTry a car balloon loanMake it interest-only
Estimates only. Your lender's statement is the number that counts. Read how we calculate.
A balloon loan sets the payment on a long schedule but makes the balance due early. This page shows the payment, the balloon, and the schedule up to the due date.
Enter the amount, rate, the amortization period the payment is based on, and when the balloon comes due. Choose whether the balloon includes the last regular payment, or tick Interest-only for a loan that never reduces principal. The last row of the schedule shows the balloon.
Two periods matter. The amortization period sets the payment: M = P × i ÷ (1 − (1 + i)−n) with n as that period in months (Calculator.net amortization calculator). The balloon term sets the due date: the schedule runs only that far, and the balance left after the last regular payment is the balloon. If the contract adds the final regular payment to the balloon, choose that option above.
Interest-only balloon loans charge interest each month (balance times the monthly rate) and never reduce principal, so the balloon equals the full amount borrowed less any extra principal you paid.
The definition. Federal Loan Estimate rules define a balloon payment as a payment more than two times the regular periodic payment (12 CFR 1026.37, Loan Estimate disclosures (CFPB)). The results show that ratio for your loan.
Balloon structures show up in seller financing, some land and commercial loans, and some auto loans. At the due date the borrower pays, refinances, or sells; this page does not model what a future refinance would cost and does not recommend any option.
| Seller-financing style | Car balloon loan | |
|---|---|---|
| Loan | $150,000 at 7% | $30,000 at 6% |
| Amortization period | 30 years | 6 years |
| Balloon due after | 5 years | 3 years |
| Monthly payment | $997.95 | $497.19 |
| Interest paid before the balloon | $51,074.61 | $4,241.75 |
| Balloon (remaining balance) | $141,197.38 | $16,343.03 |
| Balance still owed | 94.1% | 54.5% |
| Times the regular payment | 141.5 | 32.9 |
Cedrick Reese built this calculator. The monthly payment uses the standard amortization formula, whose $250,000 base case matches figures published by several independent calculators to the cent, and the balloon definition comes from the Consumer Financial Protection Bureau's Regulation Z text linked above. No live rate data is used. Send any mismatch with a lender's schedule through the contact page with your inputs.
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A lump sum due at the end of a loan that is much larger than the regular payments. Under the federal Loan Estimate rules, a payment more than two times the regular periodic payment counts as a balloon. It happens when the payment is calculated on a long amortization period but the balance comes due sooner, so most of the principal is still owed at that date.
The monthly payment is worked out as if the loan ran the full amortization period. The schedule is then run only until the balloon date, and whatever balance is left is the balloon. On $150,000 at 7% amortized over 30 years with a 5-year balloon, the payment is $997.95 and the balloon is $141,197.38. Some contracts add the final regular payment to that figure; the toggle above covers both.
You pay it, refinance it into a new loan, or sell the asset and pay it from the proceeds. Which one is available depends on your finances and the market at that time, which is the risk in a balloon structure. This page shows the size of the sum and when it is due so you can plan for it; it does not recommend any of the three.
The risk is the lump sum. If refinancing is harder or more expensive at the balloon date than expected, or the asset is worth less, the borrower can be stuck. Some balloon loans start interest-only, which keeps the payment low and the balloon at the full amount. Federal mortgage rules limit when lenders can offer balloon mortgages; the CFPB's site explains the current rules.
A seller who finances a buyer often does not want to wait 30 years for full repayment, so the note is amortized over a long period to keep payments affordable and made due after five or ten years, when the buyer is expected to refinance with a bank. The first worked example above is that structure.
Yes, if the contract allows prepayment. Enter an extra monthly amount above and the balloon falls by the extra principal plus the interest it would have earned. On a short balloon term the effect is close to dollar for dollar. A car lease residual is a different instrument and is not modeled here.