Australian Car Loan & Balloon Calculator

See the regular payment and the deferred cost

A balloon can make a car loan look more affordable because part of the financed principal is not repaid through the regular instalments. The trade-off is a lump sum at the end and more principal remaining for longer. This calculator keeps the final balloon beside the monthly cash flow so it cannot disappear behind a lower repayment.

Enter the vehicle price, cash deposit or trade-in and any establishment fee being added to the loan. The financed principal is vehicle price minus deposit plus that financed fee.

How the balloon formula works

The balloon is discounted back to today's loan value at the monthly rate. The remaining present value is amortised into equal monthly repayments. At a 0% rate, the monthly repayment is simply financed principal minus balloon, divided by the number of months.

Total interest equals all loan repayments plus the final balloon minus financed principal. Monthly account fees are added to the cash-flow total but not treated as borrowed principal or charged interest.

Amount or percentage, never both

Select whether the balloon is a fixed amount or a percentage of financed principal. Only one input is active, avoiding the common ambiguity where changing an amount silently overwrites a percentage. The balloon cannot exceed the financed principal.

Compare with no balloon

The no-balloon payment shows the monthly repayment required to amortise the same financed principal over the same term and interest rate. A balloon normally lowers that payment but does not make the vehicle cheaper. Compare the reduction with the extra interest and the final lump sum.

If the end payment would need to be refinanced, the future rate and approval are unknown. Do not assume refinancing is guaranteed. The car's future resale value is also uncertain and is not automatically equal to the balloon.

Limits of the estimate

The model assumes a fixed rate and monthly interest. Lenders may calculate daily, collect repayments at another frequency, round differently or charge fees not entered. The weekly and fortnightly outputs are budgeting equivalents rather than alternative amortisation schedules.

The default rate is the RBA F8 average for new fixed-rate personal fixed-term loans in May 2026. That official aggregate is broader than car finance and is not a credit quote; secured and unsecured car-loan pricing also varies by lender, borrower and vehicle. Vehicle duty, registration, insurance, dealer products and novated-lease tax are outside scope.

Frequently asked questions

What is a balloon payment on an Australian car loan?

It is a lump sum left outstanding until the end of the term. Deferring principal lowers regular repayments but normally increases total interest and requires a plan for the final payment.

Is the establishment fee included in the repayment?

Yes. The field is explicitly a financed establishment fee, so it is added to principal and accrues interest. A fee paid in cash should not be entered there.

Does the displayed monthly amount include account fees?

The headline total regular payment includes the monthly account fee. The result also shows the underlying loan repayment separately so the two cash-flow components are visible.

Are the weekly and fortnightly numbers actual lender repayments?

No. They are monthly cash flow multiplied by 12 and divided by 52 or 26. A lender collecting weekly or fortnightly can calculate a different amount and interest schedule.

What is not included in the financed amount?

Vehicle transfer duty, registration, insurance, dealer delivery, broker fees, optional products and any fee paid outside the loan are excluded unless you incorporate a known financed amount yourself.

Can this compare a novated lease?

No. Novated leases involve salary packaging, FBT, running costs, GST treatment and a statutory residual. This page only models a conventional fixed-rate car loan.