Loan Payment Calculator
Calculate the monthly payment on any loan, including balloon payments. See total interest and total cost for the full term.
Optional lump sum due at the end, as a % of the loan.
Monthly payment
$495.03
Balloon payment
None
Total payment
$29,702
Total interest
$4,702
A balloon payment lowers your monthly payment by leaving a lump sum for the end of the term, often used on auto and business loans.
How it works
M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1). Total interest = M × n − P.
Example: $15,000 at 6% for 5 years → $290/month, $2,400 total interest.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use this calculator when a loan carries a balloon — a lump sum due at maturity — because most EMI tools simply ignore it. Car dealers, equipment financers and private lenders in India sometimes structure loans with a large final payment to keep monthly instalments low; entering the balloon percentage here shows the true monthly cost and the amount due at the end. It is also the general monthly-payment tool when you know the amount, rate and term but not the EMI: auto loans, two-wheeler loans and consumer-durable financing all use the same amortization math. The total-cost card is the honest figure to compare two offers, since a lower EMI on a longer term can still cost more overall.
How to Use This Calculator
- Step 1: Enter the loan amount in the loan amount field.
- Step 2: Enter the annual interest rate and the loan term in years.
- Step 3: If the loan carries a balloon, enter its percentage — the lump sum due at maturity.
- Step 4: Read the monthly payment, the balloon payment and the total cost and interest for the full term.
Worked Example
Take ₹10,00,000 at 10% for 5 years with a 20% balloon. The balloon is ₹2,00,000, due in one lump at maturity; the remaining ₹8,00,000 amortises at about ₹16,998 a month. Total cost is about ₹12.2 lakh including the balloon, versus about ₹12.75 lakh for a plain 5-year loan at ₹21,247 a month. The balloon keeps monthly payments low, but only helps if the lump sum genuinely exists at the end.
Tips and Common Mistakes
- •Tip 1: Balloon structures suit loans where a known lump sum arrives at maturity — a trade-in, a receivable or a bonus — but plan for it in advance.
- •Tip 2: Enter a 0% balloon to see the standard fully amortized EMI for the same amount, rate and term.
- •Tip 3: Processing fees do not change the monthly payment on the same inputs, but they raise the real cost of the loan.
- ✗Mistake 1: Entering a balloon percentage when your loan amortises fully — it understates the monthly payment.
- ✗Mistake 2: Treating the balloon as optional; it is due at maturity, and missing it usually means refinancing at a fresh rate.
Frequently Asked Questions
How is a loan payment calculated?
It uses the standard amortising formula: payment = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount, r the monthly rate and n the number of payments. Every payment is the same.
What does the total interest paid include?
It is the difference between what you borrow and everything you repay over the term. Longer terms and higher rates both raise total interest even when the monthly payment stays affordable.
How do I reduce my loan payments?
Borrow less, extend the term (raises total interest) or shop for a lower rate. Use this calculator to compare options before committing to any loan.
Is this loan payment calculator free to use?
Yes, True Calculator's loan payment calculator is completely free with no sign-up, no app install and no usage limits.
Compare these tools
- Future Value Calculator — Find what your money grows into with compound interest at any frequency
- Gratuity Calculator (India) — Calculate gratuity under the Payment of Gratuity Act, 1972 with the 15/26 formula and the ₹20 lakh tax-exempt cap for Indian employees
- GST Calculator (India) — Add or remove GST from any amount, with CGST + SGST split for intra-state and IGST for inter-state supplies