Compare your monthly repayments with and without a balloon — see the saving now and the cost later.
Compare monthly repayments with and without a balloon residual. See the balloon amount, monthly saving and total cost difference. Free.
01 —INPUTS
The purchase price of the car before deposit.
Cash deposit or trade-in value.
Comparison rate may be higher — check with lender.
Typically 1–7 years for car loans.
Residual value due at the end of the term.
02 —RESULTS
Enter your loan details and balloon percentage to compare repayments.
A balloon payment is a residual value — a portion of the car loan that is deferred to the end of the term. This calculator shows your monthly repayment both ways: with the balloon (lower monthly payments) and without it (fully amortising). It also shows the total cost difference so you can weigh the short-term saving against the long-term cost.
Balloon payments are common on car loans in Australia, particularly for new vehicles where the car retains significant value at the end of the term. If you are comparing new vs used, try our new vs used car loan calculator as well.
Common questions
What is a balloon payment on a car loan?
A balloon payment — also called a residual value — is a lump sum due at the end of the loan term. It is typically set at 20% to 40% of the loan amount. During the loan term you only repay the non-balloon portion plus interest, so your monthly repayments are lower. At the end of the term you must pay the balloon in full, either from savings, by selling the car, or by refinancing into a new loan.
How do I refinance the balloon payment at the end of my car loan?
You can refinance the balloon by taking out a new loan to cover the residual amount. Some lenders offer balloon refinance products specifically for this purpose. However, refinancing means you continue to pay interest on the residual, increasing the total cost of the car over time. It may also be harder to qualify if the car has depreciated below the residual value.
What is the trade-off between a balloon and no balloon car loan?
The trade-off is lower monthly repayments now versus higher total cost over the life of the loan. A balloon reduces your monthly repayment because you are deferring a portion of the principal to the end. But you pay interest on the full balloon amount for the entire term, so total interest is higher. It also leaves you with a large final payment to manage. A balloon can make sense if you expect your income to rise, plan to sell the car before the term ends, or if the car holds its value well.