## Loan - Balloon Balance

The balloon loan balance formula is used to calculate the amount due at the end of a balloon loan

A balloon loan, sometimes referred to as a balloon note, is a note that has a term that is shorter than its amortization. In other words, the loan payment will be amortized, or calculated, for a certain amount of years but the loan will be paid off before all payments calculated are made, thus leaving a balance due

The loan balloon balance formula can be used for any type of balloon loan and is commonly seen with mortgages and leases

## $$v[1+r{]}^{n}-p\frac{[1+r{]}^{n}-1}{r}$$

here v=present value,p=payment,r=rate per payment,n=number of payments

ENTER THE VARIABLES TO BE USED IN THE FORMULA