Fidamen

Business Loan Balloon Payment Calculator

This tool computes the periodic payment required so that, after a specified number of payments, a defined balloon amount remains due. It supports any payments-per-year (for example 26 for bi‑weekly or 12 for monthly).

You may specify the balloon as a dollar amount or as a percent of the original principal. The calculator solves for the payment that results in the requested remaining balance at the balloon date and reports totals and interest paid up to that date.

Updated Nov 7, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record 9e8c5e3a16ec • Reviewed by Fidamen Standards Committee

Compute the periodic payment required so that after a specified number of payments a pre-defined balloon amount remains due. Supports balloon defined as a dollar amount or as a percent of original principal. Works with any payments-per-year (for example 26 = bi‑weekly, 12 = monthly).

Inputs

Advanced inputs

Balloon as percent

Balloon as dollar amount

Results

Updates as you type

Periodic payment (per period)

$1,836.40

Balloon due at end of period

$50,000.00

Computed remaining balance at balloon

$50,000.00

Total paid before balloon (all payments)

$238,731.83

Interest paid before balloon

$38,731.83

Effective annual rate (EAR)

5.12%

OutputValueUnit
Periodic payment (per period)$1,836.40USD
Balloon due at end of period$50,000.00USD
Computed remaining balance at balloon$50,000.00USD
Total paid before balloon (all payments)$238,731.83USD
Interest paid before balloon$38,731.83USD
Effective annual rate (EAR)5.12%—
Primary result$1,836.40

Visualization

Methodology

We compute a periodic interest rate by dividing the nominal annual rate by the number of payments per year. The calculator supports zero-interest edge cases and uses algebraic solutions to solve for the periodic payment that yields the requested balloon balance after the specified number of payments.

Calculations follow standard financial math for amortizing loans and remaining balance. Where possible, the tool uses direct closed-form formulas rather than iterative methods to improve determinism and traceability.

Worked examples

Example: $250,000 principal, 5% APR, bi‑weekly (26/year), balloon after 5 years as 20% of principal: the calculator returns the required bi‑weekly payment, the balloon due (20% of original principal = $50,000), total paid to date, and interest paid.

Example: If the annual rate is zero, the calculator distributes principal reduction linearly so the periodic payment is the remaining principal divided by the number of payments until the balloon.

F.A.Q.

Does this assume payments are applied immediately or at period end?

This calculator assumes payments are applied at the end of each payment period (ordinary annuity). If your contract uses payments-in-advance (annuity due) the effective periodic payment will differ.

Can I use this for bi‑weekly loan schedules?

Yes. Set Payments per year = 26 for bi‑weekly. The calculator computes the periodic rate and uses the specified frequency consistently in all formulas.

What if I want the balloon to equal the outstanding balance rather than a set dollar or percent value?

If you want the balloon to equal the outstanding balance implied by an amortization schedule, set the balloon amount equal to that computed balance. The calculator also displays the computed balance at balloon so you can confirm.

How precise are the numbers?

Results are derived from closed-form formulas and typical floating-point arithmetic. Rounding to cents is applied for display. See accuracy caveats in the citations and note that real loan statements may include fees, day-count conventions, or compounding rules not modeled here.

Sources & citations

Further resources

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: 9e8c5e3a16ec

What changed (latest)

v1.0.0 • 2025-11-07 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

UI

v1.0.0

Governance

Last updated: Nov 7, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

  • MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
  • MINOR: New features or fields that do not change existing outputs for the same inputs.
  • PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

  • Verify formulas and unit definitions against primary standards or datasets.
  • Run golden-case regression suite and edge-case suite.
  • Record reviewer sign-off with credentials and scope.
  • Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

  • Uses exact unit definitions from the Fidamen conversion library.
  • Internal calculations use double precision; display rounding follows the unit's configured decimal places.
  • Not a substitute for calibrated instruments in regulated contexts.
  • Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-07 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 300cf23aca48