balloon payment

noun

An unusually large payment due at the end of the term of a loan agreement.

Similar
lump sum
Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

nounballoon payment (plural balloon payments)

plural balloon payments

  1. businessAn unusually large payment due at the end of the term of a loan agreement.

    Synonyms: lump sum

Synonyms & antonyms

nounAn unusually large payment due at the end of the term of a loan agreement.

Similar
lump sum
Also see
balloon

Origin

So called because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

Full word history & related roots →

Translations

Finnish könttäsumma
  • könttäsummaTranslations
Polish rata balonowa
  • rata balonowaTranslations
Cite this entry
APA

balloon payment. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/balloon%20payment

MLA

“balloon payment.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/balloon%20payment. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “balloon payment,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/balloon%20payment.

Source: balloon payment on Wiktionary, CC BY-SA 4.0.