Balloon Mortgage Calculator

Balloon Mortgage Calculator

Loan Amount (USD):
Down Payment Amount (USD):
Length of Amortization (Years):
Years Until Balloon:
Interest Rate:
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Balloon Mortgage Definition

A balloon mortgage is specific type of short-term mortgage. Borrowers make regular payments for a specified period. They then pay off the remaining principal within a short time. Many balloon mortgages will be interest-only for 10 years. A final “balloon” payment to pay off the full balance comes as one large installment when the term is up.

Balloon mortgages have an early repayment option. Borrowers can also establish their loan similar to a traditional fixed-rate mortgage with the embedded option. A balloon payment mortgage may have a floating or a fixed interest rate. Conventional fixed-rate mortgages typically have a higher total debt repayment than that of balloon mortgage loans. Balloon mortgages are known as interest-only loans or partially amortizing mortgages.


Amortization or an amortizing payment is the term for the standard procedure for repaying a loan (check out our Amortization Calculator here).

With amortization, portions of the principal and interest are periodically being repaid until the loan is finally paid in full. With full amortization, the schedule of amortization is made so that the final payment includes the last portion of principal balance that is still owed.

With partial amortization, a balloon payment will still be required at maturity, covering the part of the loan amount that is still outstanding.

To use this balloon mortgage calculator, enter the following:

  1. Loan Amount: Enter the total value of the property or item being purchased.
  2. Down Payment Amount: Enter the amount that will be paid up front before amortization occurs.
  3. Length of Amortization (Years): Enter the number of years for full amortization. A longer period of amortization will yield lower monthly payments with a greater balloon payment at the end.
  4. Years until Balloon: Enter the number of years over which you will repay this loan. Balloon mortgages are commonly set between five and seven years. Following the mortgage term, the borrower will need to refinance or pay off the remaining balance.
  5. Interest Rate: Enter the annual interest rate for the amortization period.

How to Calculate Balloon Mortgage

Let's be honest - sometimes the best balloon mortgage calculator is the one that is easy to use and doesn't require us to even know what the balloon mortgage formula is in the first place! But if you want to know the exact formula for calculating balloon mortgage then please check out the "Formula" box above.

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You can get a free online balloon mortgage calculator for your website and you don't even have to download the balloon mortgage calculator - you can just copy and paste! The balloon mortgage calculator exactly as you see it above is 100% free for you to use. If you want to customize the colors, size, and more to better fit your site, then pricing starts at just $29.99 for a one time purchase. Click the "Customize" button above to learn more!