Balloon Loan Calculator
Calculate payments for a balloon loan with a large lump-sum payment due at the end of the term.
MONTHLY PAYMENT
$1,996
BALLOON PAYMENT
$273,442
Total interest: $141,098
How Balloon Loans Work
A balloon loan has lower monthly payments because it's amortized over a longer period than the actual loan term. At the end of the term, the remaining balance (the "balloon") is due in one lump sum.
Example: A $300K loan with 7-year term amortized over 30 years gives you the payment of a 30-year mortgage, but after 7 years you owe the remaining ~$265K as a balloon payment.
Risk factor: Balloon loans assume you'll refinance or sell before the balloon is due. If property values drop or your credit deteriorates, you may not qualify for refinancing β leaving you with a massive payment you can't cover.