The balloon payment calculator will calculate one of any five possible unknowns. Enter a zero for one of the following: "amount of the loan", "annual rate", "balloon due at payment number", "periodic payment" or "final balloon payment".
Therefore, with this calculator you can solve for a periodic payment amount that will result in a particular balloon payment. Or you can solve for the balloon payment amount assuming a regular payment amount that you enter.
If you've entered four values and one unknown value and you get a message after clicking 'Calc' asking you if you've entered all required fields, then one value is out of range. For example, you might have specified a payment amount that is so large that there is no need for a balloon payment. Try reducing the payment amount and/or the balloon due at payment number.
Normally, when a loan reaches the end of its term (number of periods) the balance will be zero. If after all the scheduled payments are paid, a loan still has a balance remaining, then it is said to be a loan with a balloon amount. Or, looked at another way, any loan that has a final payment that is for a larger amount than the regularly scheduled payment amount is a loan with a balloon payment.
This calculator allows you to design a loan with a balloon provision. You can calculate any one of five common loan variables including the balloon payment amount using this calculator. For example, if a loan is for $350,000 it is possible to calculate what the balloon payment amount would be using any payment amount you desire, or you can calculate what payment amount is require to result in any balloon amount that you need. See "Help" for more details.
Balloon loans are typically used to finance both commercial and residential mortgages.
If you want to use a loan calculator that assumes the balance of the loan will be zero at the end of the term, use this calculator. You may also want to try these other free, online calculators:
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