Asset Finance Calculator

Model a reducing-balance asset loan with a deposit and optional balloon due at the end. See the monthly installment, full cash outlay and effective annual rate.

End-of-term balloonReducing balanceLocal & free

Asset Finance Calculator

Percentage of the original asset price due with the final installment.
Monthly Installment
Amount Financed
Total You Pay
Total Interest
Deposit Required
Balloon Payment
Effective Annual Rate
Model: amount financed is price minus deposit. The balloon remains part of that financed balance and is discounted back from the end of the term when calculating monthly installments. Fees, insurance, tax, maintenance and late charges are not included.

Frequently Asked Questions

Balloon-aware amortisation

How the monthly payment is derived

The deposit reduces the amount borrowed immediately. The balloon is still owed at maturity, so its discounted present value is removed before calculating the equal monthly installments.

  • Amount financed: asset price minus deposit.
  • Total cash outlay: deposit plus all monthly installments plus balloon.
  • Effective annual rate: the entered nominal annual rate, divided monthly and compounded for 12 months.

Check whether the written quote uses nominal or effective interest, advance or arrears payments, variable rates, compulsory insurance, documentation fees, taxes, tracking charges and ownership-transfer conditions.

What is a balloon payment?
It is an amount left outstanding until the end of the finance term. It lowers regular installments but does not remove the debt; the final obligation must still be paid, refinanced or otherwise settled under the contract.
Does this include fees and insurance?
No. Add those costs separately when comparing the calculator result with a written quote. Also check whether any fee is financed and therefore attracts interest.
Why is the effective annual rate above the nominal rate?
A nominal annual rate divided into monthly periods compounds during the year. The displayed effective annual rate is (1 + nominal rate ÷ 12) raised to 12, minus 1.