When working with loan repayment, the Loan Amortization Schedule is a great tool. Sometimes, it might occur that, the borrower will be approved for several interest-only periods on the condition of making balloon payments after the interest-only periods. For some well-off borrowers, the banks can allow the whole period as Interest Only and the borrower can pay off all the principal at a time after the tenure of the loan.
Download our free Excel Interest Only Loan Amortization Schedule with Balloon Payment template to generate your own amortization schedule with interest-only periods and balloon payment.
This template would take all your necessary inputs and would show you the amortization schedule, an output summary of necessary outputs, and a summary chart to visualize your loan repayment process.
This template would be very helpful for homeowners, bankers, investors, financial planners, students, and all kinds of borrowers and lenders who are looking forward to taking or giving a loan.
Download Excel TemplateDownload Excel Template
For: Excel 2007 or later
License: Private Use
What Is Loan Amortization Schedule?
The loan amortization schedule is a loan repayment visualization table. Generally, this shows all the required outputs of your loan repayment procedure such as Due Payment, Due Date, Interest Paid, Principal Paid, Remaining Balance etc. So, through this, you can visualize which amount you are paying at which periods and how much you are required to pay to finish your loan.
What Is Interest Only Periods?
Interest-only periods indicate the periods where the borrower is approved to pay only the accrued interests without paying back any principal. In this case, the borrower will take a loan and continue to pay only the interest upon that loan until his/her interest-only period ends.
For example, if a borrower takes a loan of $250,000 for 30 years with 10 years interest only periods at a 6% annual interest rate, he will make only $1250 payment each month until 10 years end. During these periods, s/he will only pay the interest amounts. After 10 years, he will start to pay more to repay his 250000 loan within the next 20 years.
What Is Balloon Payment?
The balloon payment is the payment that a borrower pays on a single period to repay his full loan. For example, If a borrower takes a loan for 10 years with 10 years interest-only periods. Then s/he has to pay only the interest for 10 years. But, at the same time, s/he has to repay his full loan within 10 years, for which s/he will pay his/her whole loan balance at the next period of interest only periods as balloon payment.
Interest Only Amortization Schedule with Balloon Payment Excel Template
This template would take all your necessary inputs such as loan term, interest-only periods, loan amount, payment frequency, and interest compounding frequency. Upon taking the inputs, it would generate an amortization table and it would show you a summary containing balloon payment, total amount to be paid, total interest to be paid, etc. Moreover, it would show you a summary chart showing your principal paid, interest paid, and remaining balance trend during the loan duration.
How to Use This Template
Follow the instructions below to use this template.
- Open the template and insert all necessary input values in the blue shaded area according to the Loan Details column.
- After inserting all the required inputs and selecting all the dropdowns, you will find an amortization table along with an output summary and a summary chart giving you all the required outputs and balance trends.
- You will also find the EMI if you were not approved for any interest-only period and the required EMI after the interest-only periods to pay off the loan within the deadline. Here, if your loan term and interest-only periods are the same, you will find the EMI after interest-only periods as the whole remaining balance which is the balloon payment.
Excel Interest Only Amortization Schedule with Balloon Payment Tips
- Insert all the inputs properly and read out the added notes to get help regarding this.
- When choosing regular payment frequency and interest compounding frequency, remember to choose the interest compounding frequency as greater than or equal to the regular payment frequency. Do not choose interest compounding frequency as lesser than your chosen regular payment frequency. It would show an error if you do so.
- In the charts, the dark blue color represents your loan balance trend, the light blue color represents interest paid over the loan term and the light green color line shows the principal paid over the loan terms.
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