🎈 Partially Amortized Loan Calculator
Calculate partially amortized loans with balloon payments
Remaining balance due at end of term (must be less than loan amount)
How to Use This Calculator
Enter Loan Amount
Input the total loan amount - the amount you're borrowing.
Enter Interest Rate and Term
Enter the annual interest rate and loan term (in years).
Enter Balloon Payment
Enter the balloon payment amount - the remaining balance due at the end of the loan term. This must be less than the loan amount.
Review Results
See your monthly payment (based on amortizing only part of the loan), balloon payment due, total interest, and total amount paid.
Formula
Principal to Amortize = Loan Amount - Balloon Payment
Monthly Payment = (Principal to Amortize) × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Example Calculation:
If loan $100,000, rate 5%, term 5 years, balloon $50,000:
• Principal to amortize = $100,000 - $50,000 = $50,000
• Monthly payment (on $50,000): ~$944/month
• Balloon payment due: $50,000
• Total interest: ~$6,640
About Partially Amortized Loan Calculator
A partially amortized loan calculator helps you calculate loans with balloon payments. Partially amortized loans (also called balloon loans) are loans where monthly payments are calculated to amortize only part of the loan, with a large "balloon" payment due at the end of the term. This results in lower monthly payments than a fully amortized loan, but requires a large lump-sum payment at the end. This calculator shows you the monthly payment, balloon payment, and total costs.
When to Use This Calculator
- Balloon Loan Planning: Plan for partially amortized loans
- Payment Planning: Understand monthly payment and balloon payment
- Loan Comparison: Compare balloon loans to fully amortized loans
- Business Loans: Calculate business loans with balloon payments
Understanding Partially Amortized Loans
- Lower Payments: Monthly payments are lower than fully amortized loans
- Balloon Payment: Large lump-sum payment due at end of term
- Refinancing: Balloon payments often require refinancing
- Risk: Risk of not being able to make balloon payment
Why Use Our Calculator?
- ✅ Payment Calculation: See monthly payment and balloon payment
- ✅ Cost Analysis: Understand total costs including balloon
- ✅ Planning: Plan for balloon payment
- ✅ Comparison: Compare to fully amortized loans
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a partially amortized loan?
A partially amortized loan (balloon loan) is a loan where monthly payments amortize only part of the loan, with a large balloon payment due at the end. Monthly payments are lower than a fully amortized loan, but you must pay a large lump sum at the end of the term.
What happens at the end of a balloon loan?
At the end of a balloon loan, you must make a large balloon payment (the remaining balance). Options include: (1) Pay the balloon payment in full, (2) Refinance the balloon payment into a new loan, (3) Sell the asset to pay the balloon. Failure to make the balloon payment can result in default.
Are balloon loans risky?
Balloon loans carry risk because you must make a large payment at the end. If you can't make the balloon payment or refinance, you could default. However, they offer lower monthly payments, which can be beneficial if you expect to refinance or sell the asset before the balloon is due.
Who uses partially amortized loans?
Partially amortized loans are commonly used for: (1) Business loans where cash flow is expected to improve, (2) Commercial real estate loans, (3) Some auto loans, (4) Situations where borrowers expect to refinance or sell before the balloon is due. They're less common for residential mortgages.