Personal Loan Balloon Payment Calculator with Extra Payments
This calculator helps you estimate periodic payments and the remaining balloon balance for a personal loan that has a balloon payment. It also provides a scenario where you make recurring extra payments and shows an approximate impact on the balloon amount.
Use the standard balloon method when you want the precise contractual remaining balance assuming only scheduled payments. Use the recurring-extra method to see an approximate reduction from repeated additional payments. For exact amortization with interest compounding on each extra payment, export the amortization schedule or consult your loan servicer.
Calculates the periodic payment based on an amortization schedule and computes the remaining balance at the balloon date.
Inputs
Results
Periodic payment
-$0.12
Balloon balance at balloon date
$8,638.00
Total paid by balloon date
-$6.94
Interest paid by balloon date
-$10,006.94
Payments until balloon
60
| Output | Value | Unit |
|---|---|---|
| Periodic payment | -$0.12 | currency |
| Balloon balance at balloon date | $8,638.00 | currency |
| Total paid by balloon date | -$6.94 | currency |
| Interest paid by balloon date | -$10,006.94 | currency |
| Payments until balloon | 60 | payments |
Visualization
Methodology
Periodic payment is computed from the loan principal, the periodic interest rate (annual rate divided by payments per year), and the amortization term using the standard annuity formula.
Nominal remaining balance at the balloon date is calculated by rolling the principal forward by applying the periodic rate to the outstanding principal and subtracting the scheduled payments. The algebraic form used is the standard remaining-balance formula for level-payment loans.
The recurring-extra method applies a simplified reduction: the sum of extra payments (count × extra amount) is subtracted from the nominal balloon balance. This linear subtraction is an approximation and does not model interest compounding on each extra payment; therefore, results are approximate and conservative in many cases.
Worked examples
Example 1: $10,000 principal, 5% APR, monthly payments, 30-year amortization, balloon after 5 years. The calculator returns the monthly payment based on a 30-year schedule and the remaining balance after 60 payments.
Example 2: Same loan but with $100 extra per month for the first 60 months. The recurring-extra method subtracts $6,000 (60 × $100) from the nominal balloon balance to show an approximate adjusted balloon amount.
Key takeaways
This tool provides a standard balloon calculation and an approximate recurring-extra scenario. Use the standard method for contractual balance estimates and the recurring-extra method for quick sensitivity checks.
For compliance and high-assurance financial decisions, obtain an official amortization schedule or written payoff from your lender. The tool includes accuracy caveats and references to accepted standards for transparency.
Further resources
External guidance
Expert Q&A
How accurate is the recurring-extra estimate?
The recurring-extra method applies a linear reduction of the nominal balloon balance by the sum of extra payments. It does not model the time-value effect of each extra payment (interest saved period-by-period). For precise per-payment compounding and exact interest reduction, generate a full amortization schedule with each extra payment applied or consult your loan servicer.
What should I enter for amortization term?
Enter the amortization term used to compute the periodic payment (for example, many balloon loans calculate payments as though amortized over 25 or 30 years but include a balloon earlier). The balloon_after_years value determines when the outstanding balance is evaluated.
Can this tool show a one-time extra payment effect?
This configuration focuses on recurring extra payments. For one-time extras, set extra_start_period equal to the intended payment number and extra_end_period equal to the same number so the calculator counts a single extra payment. The tool will still apply the simplified subtraction method and produce an approximate effect.
Are results guaranteed to match statements from my lender?
No. Lenders may use different day-count conventions, rounding rules, fee capitalizations, or payment allocation rules. Use this calculator for planning and comparison only. Confirm exact payoff figures with the loan servicer.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov