Monthly payment and the lump-sum balloon due when a loan matures early.
The term the monthly payment is calculated over.
Must be shorter than the amortisation term.
Estimate only — not a loan offer. Assumes fixed rate, no extra payments and no fees; refinancing the balloon is not guaranteed.
balloon payment due at the end
How to use this tool
Type the amount borrowed and the fixed interest rate.
This is the term the monthly payment is spread over — usually 25 or 30 years, longer than the balloon date.
Type the year the loan matures — commonly 5, 7 or 10 years. It must be shorter than the amortisation term.
The balloon is most of the original loan. Check whether you can refinance or repay it before signing.
Formula & worked example
Worked example: $200,000 at 6% amortised over 30 years ($1,199.10 a month) with a balloon after 7 years. After 84 payments the remaining balance — the balloon — is about $179,200. You will have paid about $100,700, of which roughly $79,900 was interest and only about $20,800 principal.
Limitations — read this before you rely on it
Estimate only. Assumes a fixed rate, no extra or missed payments, no fees, and that the balloon is due exactly at the stated date. In practice you must refinance, sell, or pay the balloon in full — none of which is guaranteed.
Frequently asked questions
A large lump sum due at the end of a loan whose monthly payments were calculated over a longer term — so the loan is not fully repaid by the monthly payments.
Monthly payments are lower than on a fully amortising loan of the same length, which suits borrowers who expect to sell or refinance before the balloon date.
If you cannot refinance or sell when the balloon falls due — because rates rose, values fell, or your credit changed — you must find the full lump sum.
It is simply the remaining loan balance on the due date, found by amortising at the loan rate up to that date.
Yes — extra payments toward principal shrink the balance and therefore the balloon, dollar for dollar plus saved interest.