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Car Loan & Balloon Payment Calculator

Compare dealer finance, a bank car loan and paying cash. See the repayments, total costs and any large final payment.

How this tool works

Reviewed 6 September 2026. Standard Australian consumer auto finance guidelines and chattel mortgage balloon conventions.

Calculation outline

  1. Works out regular repayments while leaving a final balloon payment at the end of the loan.
  2. Projects total lifetime interest paid, accounting for the reality that the balloon balance accrues interest throughout the entire term.
  3. Simulates the "Borrowing to cover the final payment" assuming the end-of-term balloon lump sum is refinanced via an unsecured loan.
  4. Compares dealer finance with a final balloon payment, a bank loan with no balloon payment, and paying cash. The cash option includes the interest you give up.

Worked example

Example: a $45,000 vehicle with a $5,000 deposit ($40,000 borrowed) over 5 years at 7.90% p.a. with a 30% balloon ($13,500) has a monthly payment of ~$607, total interest of ~$9,927, and an end lump sum of $13,500 due. A 0% balloon bank loan at 6.50% requires ~$783/month but saves ~$3,000 in total interest.

Limits

  • Assumes vehicle depreciation does not affect the contractual balloon obligation; if the vehicle is worth less than the balloon at term end, the borrower owes the shortfall.
  • Excludes comprehensive vehicle insurance, dealer delivery charges, and state stamp duty unless included in the purchase price.

Sources

This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.