ATLAS / PLANNING TOOLS
Balloon payment calculator and savings planner.
Work out a simple monthly saving amount towards a final balloon payment, based on the amount already set aside and months remaining.
How much needs to be set aside alongside the loan repayment?
This is a savings planner for a final balloon, not a loan repayment calculator. For example, an illustrative $18,000 balloon with $6,000 already saved and 24 months remaining requires $500 a month before any return on savings. Add that amount to the separate regular loan repayment when testing cash flow.
Calculate repayments with a final balloonHow this model works.
Assumes equal monthly saving amounts and no interest or investment return.
Existing savings are assumed available for this purpose and are not counted against other commitments.
This saving amount is separate from your regular loan repayment. The contract’s final payment date and amount still apply.
Two balloon questions, two calculators.
A balloon payment raises two separate questions. The first is what the regular repayment will be once part of the principal is deferred to the end of the term; the equipment finance calculator answers that one, and lets you compare a loan with and without a balloon. The second is how to have the final amount ready on the due date. This planner answers the second question by turning the balloon into a monthly saving.
For example, a $24,000 balloon due in 36 months with $3,000 already set aside needs $583 a month. Leave the same balloon until there are 12 months to go and the figure becomes $1,750 a month, on top of the ordinary loan repayment. Starting early is the whole point of the plan.
Options when the balloon falls due.
There are generally three ways to deal with a balloon: pay it from cash, refinance the amount into a new facility, or sell or trade the asset and use the proceeds. None of them is guaranteed. A refinance depends on the lender’s assessment at the time, and a sale depends on the market value of a used vehicle or machine on that date, which may be below the balloon. A savings plan is the only option that does not rely on someone else’s decision.
Balloons are most common on business cars, utes and vans, trucks and equipment and machinery. If several facilities carry balloons, the debt and maturity calendar shows the months where they land together.
ILLUSTRATIVE STARTING ASSUMPTIONS
Start with a scenario, then change it.
The tool opens with these example inputs. They are planning assumptions and do not represent a lender offer.
- Final balloon payment ($): 20,000
- Cash already set aside ($): 2,000
- Months remaining: 36
Questions about this tool
What needs to be set aside each month?
Make a plan that does not rely solely on resale or future refinancing. If the amount is already covered, the monthly saving calculation is zero, but the contractual payment is still due.
Does this tool determine approval or borrowing capacity?
No. It models the values you enter. It does not assess credit history, lender eligibility or approval.
Can I change the example assumptions?
Yes. Enter figures from your own scenario or a specific written proposal, and check the model assumptions before relying on the result.
How is a balloon payment calculated?
The lender sets it at the start of the contract, usually as a percentage of the amount financed. Regular repayments are then calculated so that the balloon is the amount still owing at the end of the term. A 30% balloon on $80,000 financed is $24,000.
What happens if I cannot pay the balloon?
The amount is a contractual debt that falls due on the date in the agreement. Options are usually to pay it, refinance it or sell the asset, but refinancing and resale values are not guaranteed. Talk to the lender well before the due date if the plan has changed.
Is a balloon the same as a residual?
The terms are often used interchangeably. Both describe a lump sum left to the end of the term. Some contracts use residual for leases and balloon for loans; check the contract for the exact amount and date rather than the label.
Model methodology describes Atlas’s illustrative calculation, not any provider’s underwriting rules. Check the actual proposal and obtain advice appropriate to your circumstances.