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Balloon repayment calculator, with vs without.

A balloon lowers your repayments but leaves a lump sum due at the end. See both side by side, including the extra interest you would pay.

By Nick Sevta, fundr Limited (FSP1007390). Updated 12 October 2026.

Balloon Repayment Calculator

Optional — reduces the amount you finance
Reduces repayments — balloon amount due at end of term
Est. Monthly Payment
$1,006
Asset Price
$60,000
Amount Financed
$60,000
Total Interest
$18,390
Total Repaid
$78,390
Balloon Due
$18,000
With balloon
$1,006
Without balloon
$1,245
Saved each period
$239
Extra interest overall
$3,677

Figures are estimates only and not an offer of credit. Actual interest rates, fees and repayments vary based on your credit profile, lender approval and loan structure. The rate shown is illustrative. No credit check is performed when using this calculator.

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A worked example

Worked example: financing $60,000 with a 30% balloon ($18,000 due at the end) over 5 years at an illustrative 8.99% a year, the repayment is about $1,006 a month. Total repaid (including the balloon) is about $78,390, of which $18,390 is interest. The balloon is a percentage of the amount financed. At the end of the term you can pay it out, refinance it or sell the asset.

Illustrative monthly repayments on $60,000 with a 30% balloon
Term7.99%8.99%10.99%
3 years$1,436$1,470$1,540
4 years$1,145$1,180$1,250
5 years$971$1,006$1,078

Illustrative figures only, calculated monthly in arrears with no fees. Not an offer of credit.

What is a balloon payment?

A balloon (or residual) is an amount deliberately left unpaid until the end of the term. Your regular repayments only cover the rest of the loan plus interest on the whole balance, so they are lower, but interest is charged on the balloon the entire time.

When does a balloon make sense?

A balloon can suit businesses that want lower repayments now and plan to sell, trade in or refinance the asset at the end. It is a cashflow tool, not a way to make the asset cheaper.

What to watch out for

You need a plan for the balloon: cash, refinance or sale. If the asset is worth less than the balloon, you still owe the difference. Maximum balloon sizes vary by lender and asset.

Want a real number? Nick Sevta compares 15+ NZ lenders to structure the repayment that fits your cashflow. 15+ years in commercial finance.

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Frequently asked questions

How much does a 30% balloon save on $60,000?

On an illustrative 8.99% over 5 years, a 30% balloon on $60,000 reduces the monthly repayment by roughly $239 but adds about $3,677 in interest overall. Use the comparison above for your own numbers.

What happens at the end of the term?

You pay the balloon, refinance it into a new loan, or sell the asset and use the proceeds. Nick can help plan this early.

How big can a balloon be?

It depends on the lender, the asset and the term. Vehicles commonly allow larger balloons than equipment.

Is a balloon better than a longer term?

Both lower the repayment. A longer term spreads principal; a balloon defers it. Compare both using the calculator.

Does a balloon affect tax?

Possibly, depending on the finance structure. Ask your accountant.

Is this calculator a quote?

No. It is indicative only and is not an offer of credit.

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fundr Limited, FSP1007390. Calculators are indicative only and are not an offer of credit or financial advice. GST and tax treatment depend on your circumstances; speak to your accountant.