U.S. commercial mortgage · local calculation
Commercial mortgage balloon calculator.
Separate the maturity term from the amortization period to estimate regular payments, principal repaid and the remaining balance due at maturity.
A commercial loan can use payments based on a longer amortization period while maturing sooner. The remaining principal after the last scheduled payment in the shorter term is the estimated balloon.
Balloon = original principal grown by monthly interest − the accumulated principal portion of scheduled paymentsLoan structure
Maturity estimate
Enter the loan structure to see the scheduled payment, balloon and year-end balance table.
How the commercial balloon estimate works
Regular payment: the standard monthly principal-and-interest payment using the entered annual rate and amortization period. The rate is divided by 12, and the amortization period is converted to months.
Interest-only period: the monthly payment is principal × annual rate ÷ 12. Principal begins amortizing only after the number of interest-only months entered.
Balloon: the remaining principal after all scheduled monthly payments through the entered maturity term. If the loan fully amortizes by maturity, the balloon is $0.
LTV comparison: when property value is entered, beginning LTV = original loan ÷ property value and maturity LTV = balloon ÷ that same entered value. The page does not predict future property value.
Primary source: OCC Comptroller's Handbook: Commercial Real Estate Lending, version 2.0 (March 2022). Its glossary defines amortization and a balloon payment, and page 43 illustrates a five-year term with a 25-year amortization. Source reviewed September 30, 2026.
This estimate excludes fees, escrows, default interest, rate changes, curtailments, prepayments and contract-specific day-count or compounding rules. Confirm the note, payment schedule and maturity amount with the lender or servicer.
Commercial mortgage balloon FAQs
What creates a balloon payment?
A balloon remains when the loan term ends before scheduled payments have fully amortized the principal. The final remaining balance is due at maturity under the assumptions entered here.
Is the term the same as the amortization period?
Not necessarily. The term is the time until maturity. The amortization period controls the principal-and-interest payment. A five-year term with 25-year amortization generally leaves a balance after five years.
How does the interest-only period work here?
Principal stays unchanged during the entered interest-only months. Afterward, the calculator starts a new payment based on the full amortization period entered, then carries that payment through maturity.
Does the result include refinancing costs or a future rate?
No. The balloon is a balance estimate under the current assumptions. It does not assume that refinancing will be available, forecast a future rate or claim that the borrower qualifies.