Balloon Loan Calculator – Fast Flexible Amortization
Use this Balloon Loan Calculator to Calculate monthly payments, balloon amount, and interest for a balloon loan
What is a Balloon Loan?
A balloon loan is a type of loan where you make regular monthly payments (often lower than normal) for most of the term, and then pay a large "balloon" payment at the end to cover the remaining balance. This structure helps keep payments low, but requires good planning for the big final payment.
How to Use This Calculator
- Enter the loan amount, annual interest rate, and total loan term (in months/years).
- Choose your balloon payment term (when the balloon is due).
- Click "Calculate" to see your monthly payment, balloon payment, and total interest paid!
Why Use a Balloon Loan?
- Lower monthly payments at the start—great for cash flow or businesses with seasonal revenue.
- Typical for commercial, auto, or real estate loans (short-term bridge needs, etc).
- Warning: You must plan for the large balloon payment at the end!
FAQs
- Is a balloon loan risky?
- It can be—the lower payments up front can tempt borrowers, but the final balloon payment must be paid or refinanced. Assess your ability to cover that lump sum!
- Can I refinance the balloon payment?
- Often, yes. Many borrowers plan to refinance or sell the asset before the balloon is due.
