Balloon Loan Calculator

Download a free Excel template that calculates the regular monthly payment and balloon payment for any mortgage loan period between 1 and 360 months (30 years). Can be used for other types of balloon loan calculations as well.

What is a balloon loan?

A balloon loan or balloon mortgage payment is one in which you plan to pay off your auto or mortgage loan in a big chunk after a number of small regular monthly payments. For a more official definition, see the references at the bottom of the page.

Screenshot

Balloon Loan Calculator for Excel Calculate the monthly payments, total interest, and the amount of the balloon payment for a simple loan using this Excel spreadsheet template. Includes an amortization and payment schedule suitable for car, auto and mortgage loans. No Installation, No Macros - Just a simple spreadsheet

Download Now Cost: Free ($0.00) License: Personal Use Only File Type: .xls Size: ~100 KB Version: 1.0 Required: Microsoft Excel® 2002(XP), 2003, or 2007

Why a Balloon Payment?

I originally created this spreadsheet to figure out a balloon loan payment schedule for a car loan or auto loan. Why? Mainly because I didn't have the cash in hand to pay for the car in one lump sum, but I knew that I would after 6 months (because after 10 years of being a student, I was finally going to have a job). So, to keep the monthly payments low at first, we set up a 3-year loan with the plan to pay the loan off completely after about 6 months.

Balloon Mortgage Calculator

This spreadsheet can be useful as a mortgage calculator, particularly for calculating the balloon payment that is made when you sell your house after a number of years. However, there are many other costs associated with home buying/selling that the calculator does not take into account, such as property taxes, escrow payments, mortgage insurance, homeowner's insurance, closing costs, etc.

Rounding

The new version of the balloon loan calculator (v1.3) takes into account the fact that the regular payment and the interest are rounded to the nearest cent. The "Balloon Payment w/Rounding" value is taken directly from the amortization schedule, and is adjusted so that the loan final balance is zero.

Interest-Only Mortgage Loans

An option has been added to the spreadsheet to choose between monthly payments that are amortized vs. payments that are interest-only. Warning! While interest-only loans may look appealing due to the low monthly payment, you still have to pay off the loan eventually. Beware of the consumer debt spiral!