Amortization Table With Balloon Payment Calculator

This calculator creates a month-by-month amortization table for a fixed-rate loan with a balloon payment: enter the loan amount, APR, term, and the shorter period before the balloon is due. It returns the scheduled monthly payment, the balance due as the balloon, total paid through that date, and a compact table of payment, interest, principal, and remaining balance.

Formula

The calculator sets the regular payment as though the loan were fully repaid over the amortization term, then calculates the balance remaining when the balloon comes due. The formulas are:

• Monthly rate: r = APR / 1200.
• Number of amortization payments: n = years × 12.
• Monthly payment: PMT = round(P × r / (1 − (1 + r)−n), 2).
• Balloon balance after k payments: B = P(1 + r)k − PMT × ((1 + r)k − 1) / r, where k = balloon due after years × 12.
• Total cash paid by the balloon date: PMT × k + B.
• Interest paid or remaining in the balance through that date: total cash paid − P.

P is the original principal in dollars, APR is the annual percentage rate in percent per year, r is the monthly rate as a decimal, and B is the balloon balance in dollars. This model requires the balloon date to be no later than the amortization term. If the balloon date is later, the calculator reports that it cannot compute the result.

Worked Example

Using the calculator defaults: principal $20,000, APR 8%, amortization term 5 years, and balloon due after 3 years.

1. Monthly rate: 8 / 1200 = 0.0066667.
2. Amortization period: 5 × 12 = 60 monthly payments.
3. Payment before rounding: 20,000 × 0.0066667 / (1 − (1.0066667)−60), or about $405.53. The calculator rounds the scheduled payment to $405.53.
4. Balloon date: 3 × 12 = 36 payments. Applying the balance formula with the rounded payment gives a remaining balance of $8,981.68.
5. Payments through the balloon date: $405.53 × 36 = $14,599.08. Add the balloon to get total paid by that date: $14,599.08 + $8,981.68 = $23,580.76.
6. Interest through the balloon date: $23,580.76 − $20,000 = $3,580.76.

These results are calculated from the stated formulas and rounded to cents at the displayed outputs. The final payment and balance can differ slightly from a lender’s figures because of daily interest, payment dates, rounding practices, or contract terms.

Assumptions

• The rate is fixed for the calculation period.
• Payments are monthly and made at the end of each month; the balloon is due just after the final regular payment on the specified date.
• Interest compounds monthly at APR divided by 12.
• Fees, taxes, insurance, PMI, escrow, late charges, and payment-date adjustments are not included.

How to Read an Amortization Table

An amortization table breaks each scheduled payment into interest and principal and tracks the remaining balance. For a standard fixed-rate payment, the interest part is based on the balance at the start of the period; the rest of the payment reduces principal. As the balance falls, the interest portion usually declines and more of each payment goes to principal.

For this calculator’s default example, the first month’s interest is approximately $20,000 × 0.08 / 12 = $133.33. Of the $405.53 payment, about $272.20 reduces principal, leaving roughly $19,727.80. A full schedule repeats that calculation, month by month, until the balloon date. The balloon is not an extra regular installment: it is the unpaid principal balance due after the scheduled installments shown for the period.

The calculator summarizes the table rather than printing every row. To construct a row manually, use the prior row’s ending balance as the new starting balance; calculate interest at the monthly rate; subtract interest from the payment to find principal repaid; then subtract principal from the starting balance.

What a Balloon Payment Means

A balloon loan has regular payments calculated on an amortization period, but the contract requires the remaining balance to be paid earlier in one larger final payment. In the example, payments are sized to repay the loan over five years, while the balloon is due after three years. Since only 36 of 60 scheduled payments have occurred, principal remains unpaid.

A balloon payment is not necessarily the same as the original amount borrowed, and it is not simply the sum of the remaining monthly payments. It is the remaining loan balance under the contract’s payment and interest rules. The exact amount may also reflect accrued interest or other charges specified in the loan documents, which this basic calculation does not model.

Choosing Inputs and Checking the Schedule

Enter the principal and APR from the relevant loan documents or a clearly identified quote. Use years for both the amortization term and the time until the balloon, even if the agreement gives a date; convert the time carefully to avoid confusing years with months. The balloon period must not exceed the amortization period for this model.

Before relying on an estimate, compare the calculator’s assumptions with the contract. Check whether payments are monthly, whether the rate remains fixed, whether the first payment date affects accrued interest, and whether the lender defines the balloon amount as due immediately before or after a scheduled installment. Obtain actual rates, fees, and payoff figures from the lender rather than treating the example defaults as market terms.

Common Errors and Limits

• Confusing the two terms: the amortization term determines the payment size; the balloon period determines how many payments occur before the balance comes due.
• Assuming the payment pays off the loan: the displayed monthly amount is based on full repayment over the longer amortization term, not the shorter balloon period.
• Rounding each row differently: this calculator rounds the scheduled payment to cents and uses it to calculate the balloon. A lender’s system may apply different rounding or interest accrual.
• Leaving out contract costs: fees and other amounts can change the cash needed at the balloon date; they are not part of this principal-and-interest estimate.

The model is for a fixed rate and regular level monthly payments. It does not represent variable rates, irregular payment schedules, prepayments, missed payments, negative amortization, or a lender’s formal payoff statement. A detailed amortization table can show the payment-by-payment pattern, but the contract controls the actual payment obligations.

Frequently Asked Questions

How do I calculate a balloon payment on an amortization schedule?
Calculate the regular payment using the full amortization term, then apply the monthly balance formula after the number of payments made before the balloon date. The remaining balance is the estimated balloon principal.

Is the balloon payment the same as the remaining principal?
In this calculator, yes: it is the estimated principal balance after the last regular payment before the balloon. A real payoff figure may include accrued interest or other contract-specific amounts.

Does the monthly payment include the balloon?
No. The scheduled payment is calculated across the amortization term. The balloon is a separate final obligation for the remaining balance at the specified date.

Can the balloon date be later than the amortization term?
This calculator does not allow that. If all scheduled payments have completed by the amortization term, the balance model would need to account for the loan’s actual payoff and any contract provisions beyond that point.

Why is my lender’s balloon amount different?
The lender may use actual payment dates, daily interest, different rounding, fees, or contract terms that this monthly estimate excludes. Request a dated payoff or balloon amount from the lender for the exact figure.

This result is an estimate, and the lender’s disclosure gives the exact figures.

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in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Amortization term | years | 5 | 0.0833 | 50
in bal | Balloon due after | years | 3 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out balloon | Balloon balance | $ | p * (1 + apr / 1200) ^ (bal * 12) - pmt * ((1 + apr / 1200) ^ (bal * 12) - 1) / (apr / 1200) + 0 * sqrt((yrs - bal) * 12) | 2
out paid | Payments plus balloon due | $ | pmt * bal * 12 + balloon | 2
out totalint | Interest through balloon date | $ | paid - p | 2