Balloon Mortgage Calculator

Balloon mortgage calculator for monthly payments and balloon payment estimates

A balloon mortgage can look affordable at first because the monthly payment is calculated as if the loan will be repaid over a longer amortization term (for example, 30 years). But the loan is not actually paid off over that full term. Instead, the loan reaches a balloon date (for example, 5 or 7 years) and the remaining balance becomes due as a lump sum. That lump sum is the balloon payment.

This calculator estimates two things that people usually want upfront: the monthly payment during the balloon period and the estimated balloon payment amount at the balloon date. It also provides a practical breakdown of how much of your payments went to interest versus principal by the time the balloon is due. If you are considering refinancing at the balloon date, you can optionally add a refinance rate and term to estimate what the new monthly payment could look like based on the remaining balance.

To use it, enter your loan amount, your interest rate (APR), your amortization term (the schedule the payment is based on), and the balloon term (how many years until the balloon is due). The calculator treats the mortgage as a standard amortizing loan for payment purposes, then calculates the remaining balance after the number of payments that occur before the balloon date. That remaining balance is the balloon payment estimate. If you include refinance details, the calculator uses that remaining balance as the starting principal for a new loan estimate.

Assumptions and how to use this calculator

• Payments are assumed to be monthly and made on time, with no skipped payments or payment holidays.
• The interest rate is assumed to stay constant until the balloon date (no variable-rate adjustments).
• The balloon payment is estimated as the remaining principal balance after the balloon term, not including any fees or penalties.
• Taxes, insurance, HOA, and other property costs are excluded because they do not change the loan balance itself.
• If refinance fields are used, the refinance estimate assumes the balloon balance is refinanced as a new loan with the given rate and term, excluding closing costs and lender fees.

Common questions

What is the difference between the amortization term and the balloon term?

The amortization term is the schedule used to calculate the monthly payment, often 15 to 30 years. The balloon term is when the loan actually comes due, often 3 to 10 years. With a balloon mortgage, you make monthly payments based on the amortization term, but you still owe the remaining balance when the balloon term ends.

Is the balloon payment the same as the loan amount?

No. In most cases, the balloon payment is smaller than the original loan amount because you pay down some principal during the balloon period. However, early in an amortizing loan, a large portion of the payment goes to interest, so the remaining balance can still be substantial after a few years.

Why does the balloon amount stay high even after years of payments?

Amortizing loans are interest-heavy early on. If your amortization term is long (like 30 years) and your balloon term is short (like 5 years), you have not had much time to reduce principal. Higher interest rates make this effect stronger because more of each payment goes to interest instead of principal.

What if my balloon term is longer than my amortization term?

If the balloon term reaches or exceeds the full amortization term, there is effectively no balloon balance left at the end because the loan would be paid off by then under the same payment schedule. In that case, the estimated balloon payment becomes zero and the calculator will show the loan as fully repaid before the balloon date.

How can I make this estimate more accurate for my situation?

Use the exact interest rate from your offer, confirm whether payments are monthly, and verify the amortization and balloon terms in the loan documentation. If you plan to refinance, enter a realistic refinance rate and term based on current market conditions and your expected credit profile at the balloon date. If fees or penalties apply at the balloon date, treat the calculator’s balloon payment as the principal-only baseline and add those costs separately.