Partially Amortized Loan Calculator

Anyone who was applied for a loan knows that finding the right loan plan for you can cause a headache. What is the difference between a fully and partially amortized loan? What is a balloon payment? You can learn all about it below.

You may already know what a fully amortized loan is. Let's assume you want a loan of $1,000,000 with a 10% annual interest to be paid back over 10 years (120 months). You will have to repay this loan in 120 equal monthly repayments. Please check out our simple interest calculator to understand more.

In a partially amortized loan, only a part of the sum must be returned in monthly payments. An additional lump sum, called a balloon payment, is paid to the bank at the end date of the loan. For example, imagine you want a loan of $1,000,000 with a 10% interest. The bank agrees to a 10-year maturity with a 30 year amortization schedule. That means that you will have to pay 10-year worth of payments in monthly payments, and the rest after 10 years in one balloon payment.

You need to know what all the terms used in our calculator mean:

• Full loan: It's simply the loan you take from the bank - for example, $1,000,000.
• Annual interest rate: Even though you pay back the loan on a monthly schedule, the interest rate is annual. You can learn more about it in our mortgage calculator and rental property calculator.
• Amortization time: Loan payments are calculated for this amount of time. For example, if your amortization is 30 years, monthly payments are planned as if there were 360 of them.
• Payment period: Time in which you pay back the loan on a monthly basis. It must be shorter that the amortization period for a partially amortized loan.
• Monthly payment: How much you need to pay back each month.
• Total paid during payment period: How much you paid in total in monthly payments.
• Balloon payment: The lump sum paid additionally after the payment period is over.
• Total: The sum you paid back to the bank - a sum of all monthly payments and the balloon payment.

Type the values of full loan, interest rate, amortization time and payment period to find out how high the balloon payment will be.