Compare monthly repayments with and without a balloon residual. See the balloon amount, monthly saving and total cost difference. Free.
With vs without balloonTotal cost comparison
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.
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How balloon payments work
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.
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.
FAQ
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. Monthly repayments are lower but you pay interest on the full balloon amount for the entire term.
How do I refinance the balloon payment?
You can refinance the balloon by taking out a new loan to cover the residual amount. However, refinancing means you continue to pay interest on the residual, increasing the total cost of the car over time.
What is the trade-off between a balloon and no balloon car loan?
Lower monthly repayments now versus higher total cost over the life of the loan. A balloon reduces your monthly repayment because you defer a portion of the principal, but you pay interest on the full balloon for the entire term. It can make sense if you expect income to rise or plan to sell the car before term ends.