Use this calculator to estimate your monthly car payment. Then learn how balloon or final payments impact total cost and interest over time. Ideal for both new and used auto loans.

Balloon Car Loan Formula (Base Payment)

M = P × r × (1 + r)n / [(1 + r)n − 1]

Note: This formula gives the regular monthly payment. A balloon (final lump-sum) shifts part of the principal to the end. It lowers the monthly cost but increases total interest.

How to approximate a balloon with this tool

Choose a shorter term that matches your intended balloon point. The output is your approximate monthly payment before the final sum.

Balloon Loan FAQs

Is a balloon car loan cheaper? Monthly payments are lower, but total interest is higher.

What risks should I consider? Ensure you can refinance, sell, or pay the lump sum at maturity.

Who uses balloon finance? Often chosen by drivers planning upgrades or short-term ownership.

Balloon Car Loan Calculator