See the monthly payment, the balloon payment that falls due at the end, and the total interest.
The monthly payment is calculated as if the loan ran the full amortization period, for example 30 years. Each month, interest is charged on the remaining balance (balance × yearly rate ÷ 12) and the rest of the payment reduces the balance. When the balloon date arrives, the balance that is left falls due in one payment: that is the balloon payment.
A $200,000 loan at 6%, with payments calculated over 30 years and a balloon after 7 years, costs $1,199.11 a month for 84 months. After those 84 payments, $179,277.88 is still owed, and that is the balloon payment. In total, $280,003.12 is paid, of which $80,003.12 is interest.
Early in an amortization schedule, most of each payment is interest and only a small part goes toward the balance. That is why the balance after a few years is still close to the original amount. The shorter the gap between the balloon date and the amortization period, the smaller the balloon. In a family loan, the borrower and the lender set the balloon date between themselves; a written agreement can record the date, the amount and what happens if the balloon is not paid on time.
A large one-time payment at the end of a loan. The monthly payments before it are calculated over a longer period than the loan actually runs, so part of the balance is still owed when the loan ends, and that part falls due at once.
It is the balance left after the last regular payment. The calculator builds the full amortization schedule over the amortization period and reads the balance at the balloon date.
That depends on the loan documents and on what the borrower and the lender agree; the calculator cannot tell you. Some families agree on a new repayment schedule for the remaining balance. Written down and signed, the new terms give both sides the same numbers.
In a balloon loan, the monthly payment includes some principal, so the balance goes down a little before the balloon falls due. In an interest-only loan, the payment covers only interest and the full principal is still owed at the end of the interest-only period. Our interest-only loan calculator shows those numbers.
Family Loan Tracker schedules a loan with a fixed monthly payment until the balance reaches zero. Both of you see every payment, the remaining balance and the last payment date.