About this calculator
Enter the loan, rate, tenure and the balloon as a percentage of the loan. You see the EMI, the final payment, and how much more interest it costs than a normal loan.
How to use it
- Enter the loan amount, rate and tenure.
- Enter the balloon as a % of the loan.
- Compare the EMI with a normal loan.
The formula
- P
- loan amount
- B
- balloon payment at the end
- r
- monthly rate
- n
- number of EMIs
Worked example
₹10 lakh at 9.5% for 60 months with a 30% balloon
- EMI: ₹17,076 instead of ₹21,002.
- Final payment: ₹3,00,000.
- Total interest: ₹3,24,578, about ₹64,467 more than a normal loan.
What the result means
Plan how you will pay the balloon: savings, selling the asset, or refinancing.
Assumptions
- A fixed rate.
Limitations
- Refinancing the balloon later may cost more.
Frequently asked questions
What is a balloon payment?
A large lump sum due at the end of a loan, after smaller EMIs.
Is a balloon loan cheaper?
No. EMIs are lower, but total interest is higher because the balance stays larger for longer.
Who uses balloon loans?
Mostly businesses and some vehicle buyers who expect cash at the end of the term.
For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.
Last reviewed on 1 October 2026. Found a mistake? Tell us.