Car Loan & Balloon Payment Calculator
Work out the repayments on a car loan, with or without a balloon (residual) payment at the end. See the amount financed, the balloon due, total interest and the full cost — and how a balloon compares to paying the loan off in full.
Result
Estimate- Repayment
- $624.43
- Balloon due at end
- $12,000.00
- Total interest
- $9,466.01
- Total cost (incl. balloon & fees)
- $49,466.01
- Amount financed
- $40,000.00
- If no balloon, repayment would be
- $792.05
- Estimate using the standard loan formula. Actual lender repayments can differ with daily interest, fees, timing and rounding.
- You still owe the balloon as a lump sum at the end. We don’t assume it will be refinanced, that the car’s resale value will cover it, or that finance is approved.
Amortisation schedule (yearly)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $4,846.74 | $2,646.46 | $35,153.26 |
| 2 | $10,043.86 | $4,942.55 | $29,956.14 |
| 3 | $15,616.67 | $6,862.94 | $24,383.33 |
| 4 | $21,592.34 | $8,380.47 | $18,407.66 |
| 5 | $28,000.00 | $9,466.01 | $12,000.00 |
How this is calculated
- Amount financed$40,000.00
$40,000.00 − deposit $0.00 - Balloon / residual at the end$12,000.00
30% of $40,000.00 - Repayment per month$624.43 / month
A = (P − B·(1+r)^−n)·r / (1 − (1+r)^−n)Lower than a no-balloon loan, because you only pay down to the balloon.
- Total interest over the loan$9,466.01
- Total cost (repayments + balloon + upfront fees)$49,466.01
- Lump sum due at the end$12,000.00
You’ll need to pay, refinance or sell to cover the balloon.
- If you chose no balloon instead$792.05 / month
Higher repayments, but $1,943.13 less interest overall and nothing owing at the end.
Assumptions
- Amount financed 40000 at 7% p.a. over 5 years, repaid monthly.
- Balloon/residual of 12000 payable as a lump sum at the end.
- No establishment fee.
- No ongoing account fee.
Worked example
A $40,000 car loan at 7% p.a. over 5 years is about $792/month with no balloon. Add a 30% balloon ($12,000) and the repayment falls to around $624/month — but you owe $12,000 at the end and pay more interest over the loan. Compare both above before you decide.
Official sources
- ASIC Moneysmart — car loansCompare the total cost of a car loan, including a balloon or residual payment.
Frequently asked questions
What are the repayments on a $40,000 car loan?
On a $40,000 loan at 7% over 5 years with no balloon, repayments are about $792 a month. Add a 30% balloon ($12,000 due at the end) and the monthly repayment drops to around $624 — but you still owe the $12,000 lump sum when the loan finishes. Enter your own figures above for an exact estimate.
How does a 30% balloon affect repayments?
A balloon is part of the loan you don’t pay down during the term — so your regular repayments are lower. On a $40,000 loan at 7% over 5 years, a 30% balloon cuts the monthly repayment by roughly $170. The trade-off is a $12,000 lump sum at the end and more interest over the life of the loan.
Is balloon finance cheaper overall?
Usually no. A balloon lowers your regular repayments but increases the total interest, because you’re paying interest on the balloon portion for the whole term instead of paying it down. This calculator shows both the balloon and no-balloon totals side by side so you can compare the real cost.
What happens at the end of a balloon loan?
The balloon is a single lump sum due when the loan finishes. You’ll need to pay it in cash, refinance it into a new loan (with more interest), or sell the car and use the proceeds. There’s no guarantee the car’s resale value will cover the balloon, so plan for how you’ll handle it.
How is the amount financed worked out?
It’s the vehicle price, less your deposit and the equity in any trade-in (its value minus anything still owing on it), plus any fees you choose to finance rather than pay upfront. The repayment and interest are calculated on that financed amount.
Related calculators
Reviewed 1 November 2026. Estimate using the standard loan formula — not a loan offer, a quote, or financial advice. Business-use tax treatment isn’t covered. Confirm figures and the balloon terms with your lender.