How it works
Regular payment = [principal − balloon/(1+r)^n] × r/[1−(1+r)^−n]; at zero rate use (principal−balloon)/n. Round monthly interest and settle the actual remaining balance after the last regular payment.
Input definitions
- Principal
- Enter the value in the labeled unit.
- Nominal annual interest (%)
- Enter the value in the labeled unit.
- Number of payment months
- Enter the value in the labeled unit.
- Principal balloon due after last regular payment
- Enter the value in the labeled unit.
A worked example
- Principal
- 1200
- Nominal annual interest (%)
- 0
- Number of payment months
- 12
- Principal balloon due after last regular payment
- 600
Assumptions & limits
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Why can the final balloon differ slightly from my entered amount?
Monthly interest and regular payments are rounded to cents. The schedule settles the actual remaining balance, so the final balloon can differ from the theoretical target.
How does Balloon loan payment and schedule work?
Regular payment = [principal − balloon/(1+r)^n] × r/[1−(1+r)^−n]; at zero rate use (principal−balloon)/n. Round monthly interest and settle the actual remaining balance after the last regular payment.
What are the limits of Balloon loan payment and schedule?
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data.
How do I keep the full worksheet?
Run the tool and choose Download file. The on-page table is a preview and may show only the first 20 rows; the downloaded file contains the full result. CSV downloads escape spreadsheet formula prefixes. Inputs and files are processed on your device.