Loan Payment with Balloon Calculator
Calculate your monthly payments on a partially amortized loan with a balloon payment at maturity. Common in commercial real estate and owner financing.
✓ Monthly amortized payment shown
✓ Balloon balance at maturity
✓ Total interest + principal breakdown
Commercial property loan calculator
DSCR, LTV, monthly payment, and amortization schedule.
= $375,000.00
Balloon due at year 10
Used for DSCR calculation only.
How Balloon Loans Work
A balloon loan has regular monthly payments calculated as if the loan were fully amortized over a long period (20–30 years), but the loan matures early (5–10 years). The remaining balance becomes due as a lump-sum "balloon" payment.
Example: $400,000 Balloon Loan
Loan: $400,000 at 7%, 25-year amortization, 7-year term
Monthly payment: ~$2,827 (based on 25-year schedule)
After 7 years (84 payments):
Balloon due: ~$351,000
Where Balloon Loans Are Common
- Commercial real estate: Most CRE loans have 5–10 year terms with 20–25 year amortization
- Owner financing: Sellers often offer 3–5 year balloon terms
- Construction-to-perm: Bridge financing before permanent financing
- Land contracts: Often structured with balloons at 3–7 years
⚠️ Plan Your Exit
Before taking a balloon loan, have a clear plan: refinance, sell, or pay off the balloon. Interest rate changes or market conditions at maturity could affect your refinancing options.