Free Balloon Payment Calculator
Calculate the balloon payment due at the end of a short-term mortgage that is amortized over a longer period.
Balloon Payment Due
$227,869
Balloon Payment Due vs Amortization Period
Balloon Mortgages
A balloon mortgage has lower monthly payments based on a long amortization schedule, but the remaining balance comes due in a lump sum (the balloon payment) after a shorter term.
How It Works
1. Payments are calculated as if the loan runs the full amortization period (e.g., 30 years) 2. After the balloon term (e.g., 7 years), the entire remaining balance is due 3. Most borrowers refinance or sell before the balloon date
Balloon Balance Formula
Balance = P x [(1+r)^N - (1+r)^n] / [(1+r)^N - 1]
Where P is the original loan, N is the amortization months, and n is the months paid.
Common Uses
Example Calculation
A $250,000 loan at 7%, amortized over 30 years, with a 7-year balloon.
- 01Monthly payment (30-year amortization): $1,663.26
- 02Payments made: 84 months x $1,663.26 = $139,714
- 03Balloon balance after 7 years: $228,951
- 04Principal paid: $250,000 - $228,951 = $21,049
- 05Interest paid: $139,714 - $21,049 = $118,665
- 06The $228,951 balloon must be paid, refinanced, or the property sold