Finance tool
Deferred Payment Loan Calculator
Calculate the total lump sum due at maturity for a deferred or balloon loan. Supports annual, semi-annual, quarterly, and monthly compounding.
Balance Growth Over Time
Total amount owed at the end of each year, with compounding interest.
Total due at maturity
$16,288.95
After 10 years with annually compounding.
Principal
$10,000.00
Total interest
$6,288.95
Summary
What is a deferred payment loan?
A deferred payment loan is a loan where the borrower does not make regular payments during the loan term. Instead, the entire principal plus accumulated interest is paid as a single lump sum at maturity. This structure is common for balloon mortgages, bridge loans, construction loans, and certain types of personal or business financing.
Because no payments are made during the term, interest compounds on the full balance. The more frequently interest compounds, the larger the final payment. This calculator lets you compare different compounding frequencies to see the impact on the total amount due.
How the formula works
The maturity amount is calculated using compound interest: A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the term in years. The chart shows how the balance grows each year as interest compounds.
When to use this calculator
Use this calculator when you need to estimate the lump sum due at the end of a deferred payment period. Compare the result with our amortized loan calculator to see the difference between paying periodically versus paying everything at the end. This calculator is a planning estimate and not a lender quote.
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