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Finance Calc Kit
Mortgages

Partially Amortized Loan Calculator

Calculate monthly payments, remaining balloon payment balance, and total interest for partially amortized balloon loans.

Loan details

$
%

Balloon payment at year 7

$180,832.49

Monthly payment: $1,264.14

Regular payments total

$106,187.43

Total interest paid

$87,019.92

Principal vs interest at maturity

  • Principal repaid$200,000.0069.7%
  • Total interest$87,019.9230.3%

Loan summary

Original loan principal$200,000.00
Monthly amortized payment$1,264.14
Total regular payments (7 yrs)$106,187.43
Balloon payment (year 7)$180,832.49
Total principal + interest at maturity$287,019.92
Total interest paid$87,019.92

How balloon loan payments are calculated

Payments are sized for a longer amortization schedule, but the remaining balance is due at the balloon date.

  1. Calculate the monthly payment

    M=P×r(1+r)N(1+r)N−1M = P \times \frac{r(1+r)^N}{(1+r)^N - 1}

    A $200,000.00 loan at 6.5% amortized over 30 years requires $1,264.14 per month.

  2. Project the remaining balance at maturity

    Bt=P×(1+r)N−(1+r)t(1+r)N−1B_t = P \times \frac{(1+r)^N - (1+r)^t}{(1+r)^N - 1}

    After 7 years of payments, the remaining balloon balance is $180,832.49.

  3. Sum total cost through maturity

    Total=M×t+Bt\text{Total} = M \times t + B_t

    Regular payments total $106,187.43. Adding the balloon produces $287,019.92 in principal and interest, including $87,019.92 in interest.

Report tool

What is a partially amortized balloon loan?

A partially amortized loan uses payments sized for a longer amortization schedule, but the remaining balance comes due as a lump-sum balloon payment at an earlier maturity date. Borrowers get lower monthly payments than a fully amortized loan of the same term, but must refinance or pay off the balloon when it matures.

This calculator estimates the monthly payment, balloon balance at maturity, and total interest through the balloon date. To compare a fully amortized alternative, use the EMI calculator or the mortgage calculator. For commercial or investment property loans with interest-only periods, review the interest-only mortgage calculator. If you plan to refinance before the balloon date, model the replacement loan with the refinance calculator.

Monthly payment formula

Payments are calculated as if the loan fully amortizes over the longer schedule period:

Where P is the loan principal, r is the monthly interest rate, and N is the full amortization period in months.

Balloon balance at maturity

After making payments for the balloon term, the remaining balance is:

Where t is the number of months until the balloon payment is due. Total cost through maturity equals regular payments plus the final balloon.

Worked example

A $200,000 loan at 6.5% amortized over 30 years produces a monthly payment of about $1,264. If the balloon comes due in year 7, regular payments total about $106,187 and the remaining balloon balance is about $180,832. Total interest through maturity is roughly $87,020.

Risks to plan for

  • You must refinance, sell the asset, or pay cash when the balloon matures.
  • If rates rise or property values fall, refinancing may be more expensive or unavailable.
  • Lower monthly payments mean less principal is paid down before the balloon date.

Frequently asked questions

What is the difference between a balloon loan and a fully amortized loan?
A fully amortized loan pays off the entire balance by the end of the term. A partially amortized balloon loan uses a longer amortization schedule for payment sizing but requires a lump-sum payoff at an earlier maturity date.
Why would a borrower choose a balloon loan?
Balloon structures can lower monthly payments in the short term. They are common in commercial real estate and some residential loans where the borrower expects to sell or refinance before the balloon date.
Can the balloon term be longer than the amortization period?
No. The balloon maturity must be on or before the full amortization schedule. This calculator caps the balloon term at the selected amortization period.
Does this include taxes, insurance, or fees?
No. Results cover principal and interest only. Closing costs, escrow, and insurance are not included.
What happens if I cannot pay the balloon?
You would need to refinance into a new loan, sell the property, or negotiate with the lender. Planning ahead with the refinance calculator can help estimate replacement loan costs.
Are my inputs stored on a server?
No. All calculations run in your browser. Changing inputs updates the page URL so you can bookmark or share a scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.