About the Balloon Payment Calculator
What is the Balloon Payment Calculator?
A balloon loan keeps EMIs low by leaving a large lump sum — the balloon — to be paid at the end of the tenure. It is common in vehicle and equipment finance, where the asset's resale value helps pay the balloon.
Enter the loan amount, rate, tenure and the balloon as a percentage of the loan. The calculator shows the regular EMI, the balloon amount and the portion of the loan repaid through EMIs.
How to use the Balloon Payment Calculator
- Loan Amount (INR) (sample: 10,00,000)
- Interest Rate (% per year) (sample: 8)
- Loan Years (sample: 5)
- Balloon Payment Share (%) (sample: 20)
- Press Calculate Balloon Loan (results also refresh as you type). The result card shows the Regular EMI, along with Balloon Payment, Financed Through EMIs and Balloon Share.
Formula used
EMI = EMI on (P − Balloon ÷ (1 + r)ⁿ)
- Balloon = P × balloon percentage, due with the last instalment
The EMIs repay the present value of the non-balloon portion; the balloon itself carries interest until the end.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Loan Amount (INR) | 10,00,000 |
| Interest Rate (% per year) | 8 |
| Loan Years | 5 |
| Balloon Payment Share (%) | 20 |
| Result | Value |
|---|---|
| Regular EMI | ₹17,554 |
| Balloon Payment | ₹2,00,000 |
| Financed Through EMIs | ₹8,65,758 |
| Balloon Share | 20% |
Tips for using the Balloon Payment Calculator
- Plan how you will pay the balloon — savings, sale of the asset or refinancing.
- Total interest is higher than a regular loan because the balloon is outstanding throughout.
- Balloon structures suit assets with a predictable resale value.