Balloon payment calculator
A balloon defers part of your loan to a lump sum at the end of the term. Your monthly repayment drops because you're amortising less — but the deferred slice keeps accruing interest the whole time, so the total cost rises. This calculator makes both sides visible: set your amount, rate and term, then switch the balloon between 0% and 40% and watch the monthly figure and total interest move in opposite directions. The worked example below shows the pattern at three balloon levels. All figures are indicative only.
Between $1,000 and $50,000,000
Indicative repayment
$1,217/month
- Total interest
- $12,995
- Total repayment
- $72,995
Indicative estimates only — not an offer of finance or a quote. Actual rates, fees and repayments depend on lender assessment of your circumstances.
Worked example: the same loan at three balloon levels
Example only — $60,000 financed over 5 years at an illustrative 8.50% p.a. This is not a quote and not a rate offer; it simply shows how the balloon moves the numbers.
| Balloon | Monthly repayment | Lump sum at end | Total interest | Total repaid |
|---|---|---|---|---|
| No balloon | $1,231 | — | $13,859 | $73,859 |
| 20% | $1,070 | $12,000 | $16,187 | $76,187 |
| 40% | $909 | $24,000 | $18,516 | $78,516 |
The bigger the balloon, the lower the monthly repayment — and the higher the total interest. Both effects come from the same decision.
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This calculator provides general estimates only, based solely on the figures you enter. It doesn't constitute financial, tax or credit advice, an offer of finance, or a quote. Actual rates, fees and repayments depend on lender assessment of your circumstances. Speak to your accountant or adviser about what suits your situation.