Balloon Payment Calculator

How a balloon payment changes your monthly cost — and what it adds to total interest.

Set to 0 to compare against a standard loan

Result

Amount financed£18,000.00
Monthly payment£319.15
Final balloon£8,000.00
Total cost£25,319.00

How it's calculated

  1. 1

    Amount financed = £20,000.00 − £2,000.00 deposit = £18,000.00

  2. 2

    Monthly rate r = 9.9% ÷ 12 = 0.825%

  3. 3

    Amortised portion = £18,000.00 − £8,000.00 balloon = £10,000.00

  4. 4

    Amortised payment = £10,000.00 × r × (1+r)^48 ÷ ((1+r)^48 − 1) = £253.15/mo

  5. 5

    Balloon interest accrues monthly: £8,000.00 × 0.825% = £66.00/mo

  6. 6

    Monthly payment = £319.15 · Total cost = £25,319.00

Balloon Payment Calculator — FAQs

What is a balloon payment?

A lump sum deferred to the end of the finance term — it lowers monthly payments because you never amortise it, but interest accrues on it every month.

Is a balloon payment worth it?

Lower monthly cost but higher total interest (interest runs on the balloon for the full term). Set balloon to 0 here to compare total cost directly.

Can I refinance a balloon payment?

Yes — balloon refinancing spreads the final sum into a new loan, though at a new APR and potentially longer total cost.

Related calculators

Car Loan & Finance CalculatorPCP Car Finance CalculatorCar Loan APR CalculatorCar Lease CalculatorHire Purchase CalculatorCar Finance DCA & Redress CalculatorCar Finance Settlement CalculatorNegative Equity Car Finance CalculatorCar Tax Calculator (VED)

Need a Custom Tool Built?

We build calculators, estimators and internal tools for businesses in the UK and North America.

Get a Quote

Embed this Balloon Payment Calculator on your site

Free to use — paste this snippet into any webpage. It auto-resizes and includes a small attribution link. Add ?theme=dark to the iframe URL for dark mode.

Need help? See the embed guide for WordPress, Webflow, Squarespace & more.