Balloon Payment Calculator
Calculate the periodic repayment on an Australian loan with a balloon or residual amount due at the end, plus total interest and total repaid.
Your results
Calculation breakdown
- Repayment
- (PV − FV ÷ (1+i)^n) × i ÷ (1 − (1+i)^-n)
Assumptions
- Assumes a fixed interest rate for the full loan term.
- The balloon (residual) amount is due as a lump sum at the end of the term.
- Excludes establishment, exit and ongoing fees.
How this calculator works
A balloon (or residual) payment loan has smaller regular repayments because a lump sum remains owing at the end of the term. This calculator applies the standard amortisation formula that solves for a repayment reducing the balance down to the residual amount, then shows total interest and the balloon due date.
Frequently asked questions
What is a balloon payment?
A balloon payment is a lump sum due at the end of a loan term, common in car and equipment finance, that reduces regular repayments because the loan isn't fully repaid through instalments.
Do I need to refinance the balloon amount?
Often yes — many borrowers refinance, sell the asset, or pay the balloon as a lump sum at the end of the term.
Does a higher balloon reduce my repayments?
Yes, a larger residual amount reduces the periodic repayment because less of the loan needs to be repaid through instalments.
Results are estimates only and are not financial, tax, legal or credit advice.