Finance Calculator
Balloon Payment Calculator
A balloon loan gives you a lower monthly payment in exchange for a large lump sum at the end. See exactly what you'll pay each month — and what's waiting for you at the finish line.
Loan Setup
Monthly Payment
then a $12,000 balloon at the end
Balloon Due
$12,000
Total Interest
$8,320
Total of Payments
$48,320
Standard Payment
$783
Monthly savings vs a standard loan
You pay $194/mo less — but you must cover the balloon by refinancing, selling, or paying cash when the term ends.
How it works.
Frequently asked questions.
Are balloon car loans a good idea?
They lower your monthly payment, which can help cash flow, but you owe a large sum at the end and pay more total interest than a standard loan. They work best if you plan to sell or trade the car before the balloon comes due — otherwise you need a plan to pay or refinance it.
What happens if I can't pay the balloon?
You typically refinance the remaining balloon into a new loan, sell the car to cover it, or hand the vehicle back if the contract allows. Refinancing means more interest, and if the car is worth less than the balloon you'll owe the difference.
How is a balloon loan different from a lease?
A lease is very similar — the residual value is essentially a balloon. The difference is that with a balloon loan you own the car and can pay the balloon to keep it, whereas a lease gives you the option to buy at the residual or walk away.