The remaining balance calculator calculates a loan's principal balance after a particular payment number. It is not the loan balance at the time a payment is due. This is an important distinction that you should understand. More below...»
The key to understanding the distinction is understanding accrued interest. On the day a payment is made, the amount due on the loan is the balance as shown on the amortization schedule. That's the remaining balance, and that's what this calculator is calculating. But, one day after the payment is paid, the balance is no longer the same as it was the day before. There is one day's interest due on the prior day's balance. This is the accrued interest. Interest will accrue each and every day until the next payment. Then, once again, when the payment is paid, the payment will go toward paying this accrued interest with the remainder being applied to principal and the balance due on the loan being the balance shown on the amortization schedule (plus or minus a small rounding adjustment).
If you want to know the loan pay off amount (balance), including the period's accrued interest, meaning the total balance on a day when a payment is due, then use the balloon payment calculator. A balloon payment is equal to the prior period's loan balance plus the accrued interest.
If you want to confirm a loan payoff amount for a repayment on any date including the impact of possible interest rate changes, late or missed payments and extra payments then use the Time Value of Money Calculator and see this step-by-step tutorial:
A debt is a debt. A loan is a loan. And while some loans may have special provisions, the time value of money calculator will calculate the loan repayment amount considering the payments actually made for any loan, regardless of what you call it.
The remaining balance calculator calculates the principal balance after a specified payment number. Example, if you have a four year car loan and you've made a year and a half of monthly payments (18 months), this calculator will tell you the balance of the loan.
Or given a desired remaining balance, the calculator will calculate one of the four other inputs. Use this calculator to tell you what your periodic payment needs to be to result in a specific balance after "X" payments have been made.
To calculate a loan balance, enter the original loan amount, say $28,500. Enter 6.5% for the "Annual Interest Rate" and 18 for the "Balance After Payment (#)". Enter your "Periodic Payment". We'll assume $675.88. Enter "0" (zero) for the "Loan Balance After Payment #". Leave the other setting set to their default values. Click the "Calc" button (or if you want to see a more detailed schedule, click "Payment Schedule" or for charts click the "Charts" button of course. (With this calculator, there is no need to click the "Calc" button first.) The result is $18,667.96.
NOTE: The actual balance may vary slightly. This is because the calculator calculates the balance after the payment. If some days have passed since the payment was made, then interest is accruing for those days since the last payment. You can use our Exact Day Compound or Simple Interest Calculator to calculate any odd days of accrued interest.
The "Payment Method" option is normally left set to "Arrears" for loans. You would use "Advance" for finding the balance of a lease. The difference between the two is this: If the first payment is due and paid on the same date that the loan was made, then you would set this option to "Advance", otherwise you would set this to "Arrears".
Remember, there are a lot of financial calculators on this site. If you can't find exactly what you need, just ask. Remaining balance and loan payoffs are critically important calculations and this site is here to help. Whether you hold the debt or are the borrower, "don't under collect, don't over pay".