West Virginia Finance

Jun 21 2018

Balloon Loan Payment Calculatorwith Amortization Schedule

The Balloon Loan Payment Calculator on this page will instantly calculate the monthly payment, interest costs and the payment due at the end of the loan.

This free online calculator will calculate the monthly payments, interest cost, and balloon payment for any combination of balloon loan terms.

Plus, the calculator also includes an option for including a monthly prepayment amount, as well as an option for displaying an amortization schedule with the results.

Updated September 15, 2012: Added annual totals to the amortization schedule and a feature for opening the amortization schedule in a printer friendly window.

What is a Balloon Payment?

A balloon payment is the amount due after a balloon loan’s specified number of years have passed.

A balloon loan is usually stated in a “pre-balloon-years/payment-based-on-years” format. For example, if a balloon loan’s payment is based on a 30-year payback period, and the balance is due after 3 years, that would be considered a “3/30” balloon loan.

Why a Balloon Loan?

The primary reasons you might consider choosing a balloon loan over a conventional loan, are because balloon loans tend to be easier to qualify for and they typically come with lower interest rates.

The downside is that you risk being forced into a higher interest rate loan if you can’t pay the balance when it comes due.

With that, let’s use the balloon loan payment calculator to calculate the payments, interest cost and balance due for your loan.

Loan amount: The dollar amount of the loan, otherwise referred to as the Principal.

Annual interest rate: The annual interest rate you will be charged during the pre-balloon period. Enter as a percentage (for .06, enter 6%).

Number of years payment is based on: The number of years the payment will be based on (typically 30 years).

Term of balloon period in years/months: The number of years or months between now and when the balance will come due (normally from 1 to 10 years).

Optional monthly prepayment: If you would like to apply an additional monthly amount to paying down the principal during the pre-balloon period, enter the monthly amount here.

Month and year to start payments: The month and year you want your payments to start. The calculator will use the month and year to create an amortization schedule should you choose to have one included in the results.

Monthly loan payment amount: Based on your entries, this is how much your minimum monthly payment will be for the years prior to the balance coming due.

Monthly payment with prepayment: The total of your minimum monthly payment, plus the monthly prepayment amount (if you chose to enter one). If no monthly prepayment amount was entered, this field will be the same as the preceding field.

Total payments: The total of all monthly payments between now and when your balance comes due.

Interest paid: The interest you will pay between now and when your balance comes due.

Principal paid: The principal you will have paid down by the time your balance comes due.

Balloon payment amount: The principal balance of your loan when your balance comes due.

Printer Friendly Amortization Schedule with Balloon Payment button: If you selected Include Amortization Schedule before calculating, this button will be activated. Once activated, clicking the button will open a pop-up window containing a printer friendly copy of the amortization schedule displayed in the results.

Other useful free online financial calculators:

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