Balloon Payment Calculator for Farm & Land Loans
Payment, balloon balance due, balloon date, and interest paid before the balloon on a loan amortized over a longer term.
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- Annual payment
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- Balloon due date
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- Total paid before the balloon
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- Total interest before the balloon
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A balloon loan is amortized as if it will run the full term, but the entire remaining balance comes due on the balloon date. Borrowers typically refinance, sell, or pay off the balance at that point. Refinancing is not guaranteed and depends on conditions and lender criteria at that time.
Estimate only. Your lender's terms, fees, and payment structure may differ.
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How this is calculated
i = (annual rate / 100) / periods per year n = amortization years x periods per year k = balloon years x periods per year payment = P x i / (1 - (1 + i)^-n) balloon = P x (1 + i)^k - payment x (((1 + i)^k - 1) / i)
The payment comes from the longer amortization term, which is what keeps it affordable. The balloon is the balance that remains after k periods of that schedule: the principal grown at the periodic rate, less the accumulated value of the payments made so far.
Because early payments are mostly interest, the share of original principal still owed at the balloon date is usually high. Total paid before the balloon is the sum of the scheduled payments up to that date, and interest before the balloon is the interest portion of those same payments. The balloon figure matches the running balance in the amortization schedule to the cent.
Assumptions: fixed rate through the balloon date, every scheduled payment made on time, no prepayments, and no fees or renewal costs included.
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