Home Loan Balloon Payment Calculator
This tool helps you model balloon payments and the impact of switching to bi‑weekly payments. Use it to estimate the remaining principal (balloon) at a chosen term, compare total interest for monthly vs bi‑weekly schedules, and model any extra payments per period.
Results assume interest compounds per payment period and do not include escrow, taxes, insurance, fees, or prepayment penalties. Use the fields to set loan amount, APR, amortization length, payment frequency, and balloon term.
Compute the remaining principal (balloon due) after a given number of years of regular payments on an amortizing schedule. Payments are computed from the amortization schedule; a shorter balloon term than amortization produces a remaining balance due as the balloon.
Inputs
Results
Payment applied per period
$1,432.25
Balloon (remaining principal) due at term end
$271,342.54
| Output | Value | Unit |
|---|---|---|
| Payment applied per period | $1,432.25 | — |
| Balloon (remaining principal) due at term end | $271,342.54 | — |
Visualization
Methodology
Periodic interest rate is computed as APR divided by payments per year. Scheduled payments for an amortizing loan are computed from the standard annuity formula: payment = r*L / (1 - (1+r)^-N). Remaining principal after n payments is derived from the closed‑form amortization balance formula.
Bi‑weekly schedules are modeled as 26 payments/year. The calculator compares total paid under each schedule for the same amortization length to estimate interest savings. Adding an extra payment per period reduces the outstanding balance and therefore the balloon and total interest accordingly.
Accuracy and data handling follow recognized best practices. Calculations use deterministic formulas; results are subject to rounding and input validity. See the citations for standards on numerical reproducibility and software reliability.
Further resources
Expert Q&A
What is a balloon payment?
A balloon payment is the remaining principal due at the end of a loan term when the scheduled payments do not fully amortize the loan. It is calculated as the outstanding principal after the specified number of payments.
How do bi‑weekly payments reduce interest?
Bi‑weekly schedules increase the number of compounding periods per year (26 vs 12). If payments are sized so the equivalent annualized payment is the same, more frequent compounding and extra effective payments (26 payments ≈ 13 monthly payments) can shorten amortization and reduce total interest.
Are these results guaranteed to match my lender's statement?
No. This calculator provides estimates based on standard amortization formulas and the inputs you provide. Lenders may use different day‑count conventions, rounding, or fees. Always confirm final figures with your lender or loan servicer.
How precise are the calculations and what are the limits?
Calculations use closed‑form formulas and typical floating‑point arithmetic. They assume constant APR, no fees, and on‑time payments. Very large inputs, nonstandard compounding, or bespoke loan features (negative amortization, interest‑only periods, prepayment penalties) are outside the scope.
Sources & citations
- National Institute of Standards and Technology (NIST) — Numerical Software Guidelines — https://www.nist.gov/
- International Organization for Standardization (ISO) — Software and financial data quality principles — https://www.iso.org/
- Institute of Electrical and Electronics Engineers (IEEE) — Software reliability and testing recommendations — https://www.ieee.org/
- Occupational Safety and Health Administration (OSHA) — Organizational risk and quality management (guidance applicable to process controls) — https://www.osha.gov/