Balloon loan calculator
This balloon loan calculator shows the monthly payment and the lump sum you will owe when the balloon term ends.
How a balloon loan works
The payment is calculated as if the loan would last a long time, often 30 years, which keeps it low. But the loan is due in full after a shorter term, such as five or seven years, so a large remaining balance, the balloon, is due at once. Early payments barely reduce the balance, so the balloon is close to the original amount.
Plan for the balloon before you sign
Balloon loans suit borrowers who expect to sell, refinance or receive a lump sum before the due date. The risk is that rates are higher or your credit is weaker when it comes due, and you cannot refinance. Always have a written plan and a fallback.
Longer amortization, lower payment, bigger balloon
The payment is based on the amortization period, while the balloon is whatever is still owed when the 5 years term ends.
| Amortization | Monthly payment | Balloon after 5 years |
|---|---|---|
| 15 years | $1,742.21 | $153,435 |
| 20 years | $1,491.15 | $171,178 |
| 25 years | $1,350.41 | $181,125 |
| 30 years | $1,264.14 | $187,222 |
Frequently asked questions
What happens when the balloon is due?
You pay the remaining balance in full, usually by selling, refinancing or using savings. If you cannot, the lender may foreclose or repossess.
Why choose a balloon loan?
It gives a low payment for a few years, which can help short-term cash flow or a planned sale.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.