Mortgage Balloon Payment Calculator
This calculator computes the scheduled periodic payment (monthly or bi‑weekly) based on a full amortization schedule, and then returns the balloon amount — the remaining principal due if a balloon payment falls before full amortization. It supports two workflows: starting from original loan terms, or from an existing remaining balance.
Use the bi‑weekly option to estimate the effect of 26 payments per year (commonly used in bi‑weekly programs). Results are estimates for planning and do not replace lender payoff statements or official disclosures.
Compute the periodic payment based on a full amortization schedule, then report the remaining balance (balloon) after a specified number of years.
Inputs
Advanced inputs
Original loan terms
Existing remaining balance
Results
Periodic payment
$742.93
Payments until balloon
—
Balloon (remaining balance)
—
Interest paid until balloon
—
| Output | Value | Unit |
|---|---|---|
| Periodic payment | $742.93 | USD |
| Payments until balloon | — | payments |
| Balloon (remaining balance) | — | USD |
| Interest paid until balloon | — | USD |
Visualization
Methodology
Payments are computed using standard amortization formulas. The scheduled periodic payment is the fixed payment that amortizes the principal over the chosen amortization term at the chosen payment frequency.
The balloon amount is the remaining loan balance after the specified number of payments. For 0% interest the formulas simplify to linear principal reduction; otherwise compound interest formulas are used.
Calculations assume consistent payment timing (equal periods) and that interest compounds at the same periodic frequency as payments. Changes in escrow, fees, late payments, interest compounding conventions, or lender rounding rules will affect actual payoff values.
Worked examples
Example 1: $300,000 loan, 5.0% APR, 30‑year amortization, bi‑weekly payments, balloon after 5 years — calculator returns the bi‑weekly payment and the remaining balance at 5 years.
Example 2: Existing remaining balance $200,000, 4.5% APR, 20 years remaining amortization, switch to bi‑weekly payments, balloon after 3 years — calculator returns the new periodic payment and the balloon due in 3 years.
Key takeaways
Use the 'Original loan terms' workflow to compute the scheduled payment based on a full amortization term and find the balloon due at a chosen earlier date.
Use the 'Existing remaining balance' workflow when you have a current balance and remaining amortization and want to convert to monthly or bi‑weekly payments and project a balloon.
Further resources
Expert Q&A
Does 'bi‑weekly' mean half of the monthly payment?
No. Bi‑weekly typically uses 26 payments per year (every two weeks). Half the monthly payment equals 24 half‑monthly payments per year. The calculator uses 26 payments per year when bi‑weekly is selected.
Why does the balloon amount differ from the loan principal?
The balloon amount is the remaining principal after making scheduled payments for the selected period; it reflects principal reduction and accrued interest and is generally less than the original principal unless no payments have been made.
How accurate are the results?
Results use standard amortization formulas and typical rounding. They are estimates for planning. Actual payoff amounts depend on lender rounding, per‑period interest day counts, fees, and prepayment policies. Always verify with lender payoff statements.
What if interest rate or payment frequency changes mid‑loan?
This calculator assumes fixed APR and a consistent payment frequency for the period evaluated. If terms change mid‑loan, recalculate for each interval or consult your lender for an official amortization.
Is this a replacement for legal or lending documents?
No. Use this tool for planning and comparison. The lender's note, servicing agreement, payoff statement, and closing documents govern legal obligations.
Sources & citations
- National Institute of Standards and Technology (NIST) — cybersecurity and data protection guidance — https://www.nist.gov
- International Organization for Standardization (ISO) — financial services and information security standards — https://www.iso.org
- IEEE — standards for numeric computing and software quality — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) — workplace safety standards (relevant to financial services operations) — https://www.osha.gov