Earlier we published a *home loan mortgage qualification calculator *and now we have created this online calculator called **Loan with Balloon Payment Calculator**. Let us first understand, *what is a balloon payment on a mortgage?* A balloon loan is a kind of loan that includes a lump sum payment schedule at any point in the term, but usually at the end of the loan. Thus, you get a balloon loan mortgage on a property where you don’t need to pay the entire principal and interest through an equated monthly payment, but you need to pay a large final payment at the end of a period or before that time? This large payment explains your question *“What is a balloon payment on a mortgage? “*

## Balloon Payment Mortgage Calculator

## What is a balloon payment amortization schedule?

A **balloon payment amortization schedule is a **periodic table for equated monthly payments for a short term and then a large lump sum payment at the end of the loan. Since balloon mortgages expect a considerable amount of money after a short time, commercial real estate loans are most of the time of the nature of balloon loan.

## The math behind loan with balloon payment calculator?

The Loan with Balloon Payment Calculator used following **balloon payment formulas**:

#### Monthly payment

`Pmt = (A * i * (1 + i)ⁿ) / ((1 + i)ⁿ - 1)`

Where:

`Pmt`

– monthly payment;`A`

– Loan amount;`i`

– periodic interest rate; and`n`

– number of periods.

**Balance due.**

`B = (A * (1 + i)ⁿᵇ) - Pmt / i * ((1 + i)ⁿᵇ - 1)`

Where:

`B`

– Balloon payment; and`nb`

– Number of balloon loan periods

## A balloon payment example

Here is a simple example to show how Loan with Balloon Payment Calculator works. Say you want to borrow a short term loan to finance repairing or improvement of your house, so you ask the financier for a loan that you expect to pay in 5 years. He offers you a balloon payment mortgage loan

`Loan amount = $500,000`

;`Amortization period = 20 years`

;`Balloon payment after =`

; and**5 years**`Interest rate = 6.5%`

.

So, when you put aforesaid data in our balloon calculator, you see following results :

**MONTHLY PAYMENT $3,727.87**- TOTAL MONTHLY PAYMENTS $223,672.20
- TOTAL AMOUNT PAID $651,618.30
- TOTAL INTEREST$151,618.30
**BALLOON PAYMENT $427,946**

If ypou liked Loan with Balloon Payment Calculator , try our mortgage payoff calculator with payment schedule?