Cernarus

Student Loan Balloon Payment Calculator with Bi-Weekly Payments

This calculator estimates periodic payments, total amount paid, and total interest for student loans that include a balloon payment at a specified time. It supports comparison between bi‑weekly and monthly payment schedules and allows the balloon payment to occur before the nominal loan term ends.

Use the form to enter your loan principal, annual interest rate (APR), loan term, the balloon amount, and the years until the balloon is due. The tool reports periodic payment amounts excluding the balloon, the balloon amount due, total amount paid, and estimated interest.

Updated Nov 7, 2025

Calculates the bi‑weekly periodic payment when a balloon payment remains at a specified future time. Uses 26 payments per year.

Inputs

Results

Updates as you type

Bi‑weekly payment (excl. balloon)

—

Balloon payment due

$0.00

Total paid (payments + balloon)

—

Total interest paid

—

Estimated effective APR

512.21%

OutputValueUnit
Bi‑weekly payment (excl. balloon)—USD
Balloon payment due$0.00USD
Total paid (payments + balloon)—USD
Total interest paid—USD
Estimated effective APR512.21%%
Primary result—

Visualization

Methodology

Calculations use standard time‑value‑of‑money formulas for installment loans with a future lump sum (balloon). The payment is solved such that the present value of all periodic payments plus the present value of the balloon equals the principal.

Bi‑weekly schedules assume 26 payments per year. Monthly schedules assume 12 payments per year. The calculator discounts the balloon to present value using the periodic rate and uses either closed‑form annuity formulas or a zero‑rate fallback.

Numerical behavior and rounding follow common financial computing practice. For zero interest rates the payment is principal divided evenly by the number of periods. For positive rates the annuity formula is used: payment = (principal - PV(balloon)) * (r / (1-(1+r)^-n)).

Worked examples

Example 1: $30,000 principal, 5% APR, 10 years, $5,000 balloon at year 10. Bi‑weekly payment computed using 26 periods/year yields a lower per‑period payment and different total interest than monthly.

Example 2: Zero APR scenario: the payment equals principal divided by total number of payments; balloon amount is added to the final payment as specified.

Key takeaways

This tool helps compare how payment frequency and the presence/timing of a balloon payment affect periodic payments and the total cost of a loan.

For planning, always confirm contract terms with your lender and consider cash flow for the balloon date.

Further resources

Expert Q&A

Does switching to bi‑weekly always save interest?

Not always. Bi‑weekly schedules increase the number of payments per year relative to monthly, which can reduce compound interest if the lender applies payments more frequently and treats each as reducing principal; however, contractual treatment varies. Use the comparison method here and confirm with your lender whether they reapply payments immediately or hold them.

How does the balloon timing affect payments?

A balloon due earlier reduces the present value of the balloon less, which typically increases the periodic payment required to reach the same principal amortization. Later balloons discount more and lower periodic payments but leave a larger lump sum due at the balloon date.

How accurate are the results?

Results use exact closed‑form financial formulas and common floating‑point arithmetic. Rounding and lender billing rules vary. See accuracy caveats below and verify exact figures with your loan servicer.

What if my lender compounds differently or applies payments irregularly?

This calculator assumes consistent periodic compounding at the APR converted to the payment period. If your lender uses different compounding, mid‑period application, or imposes fees, the actual amounts may differ. Confirm specifics with the lender.

Sources & citations