Remaining Balance Calculator
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The key to understanding the distinction is understanding accrued interest. When a payment is due and paid, the principal amount owed on the debt 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 later, 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 previous day's balance. This interest is known as accrued interest, and it is the reason the interest balance (and thus the loan balance) increases every day until the next payment.
The amortization schedule shows this repeating pattern. A payment gets applied to the accrued interest with the remaining amount used to reduce the principal balance, and the amortization table shows the balance after the payment (plus or minus a small rounding adjustment).
If you want to know the loan pay off amount (balance), including the accrued interest, then use the balloon payment calculator. A balloon payment is equal to the prior period's loan balance plus the accrued interest. That is, the balloon amount the balance on a scheduled due date, but before accounting for any payments.
Other uses for this Loan Balance Calculator
Need a loan with a specific balance?
At times a borrower might want to make a periodic payment that results in a specific balance after making payments for say four or five years. What should the monthly payment be to achieve this goal?
This calculator will tell you.
Enter the loan amount, interest rate, and balance after payment (48 months, for example, for four years). Then, rather than enter 0 for the loan balance after a payment number, enter the balance that you want and enter 0 for the periodic payment.
Pay the periodic payment amount calculated, and the loan balance will be the one you entered.
Check out the amortization schedule and see for yourself.
You can also calculate a particular loan amount or interest rate needed using the same technique.
Or you can calculate when the balance will be a particular amount.
The calculator is very flexible!
Help with Remaining Balance Calculator
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".
Join the conversation. Tell me what you think.
Ronaldo Sacdalan Clemente says:
My salary loan balance
Karl says:
If you want to confirm the exact balance, you can use this TVM financial calculator. And this loan payoff tutorial will step you through how to record the actual payments as they were made.
Roy A says:
Pretty vague enquiry.
My boss has asked me to look at a loan he has made to ensure that it has been correctly handled.
It was a loan facility with draw-downs monthly versus invoices and regular monthly repayments made by the borrower.
The interest rate was 4% compound and I am unsure how to reach an accurate conclusion.
Any help gratefully received!
Karl says:
If you want to confirm a balance as of a specific date, and you want to show the payments made on a loan on the dates they were actually made, then you should use this loan payoff calculator.
The above calculator is very flexible, and it will do what you need, but it takes some while to learn how to use. There are 25 tutorials to help you, however! Everyone should read tutorial #1 and then tutorial #25 is for your specific case.
If this is not what you need, please ask again.
Brittany says:
Excellent Calculator. Thank you!!!!
Hope Clark says:
I carry at home mortgage loan where many pmts were paid late and a total of 14 pmts were missed on a 30 yr note, but we are in the 6th year and he is selling and needs a payoff what calculator can I use to figure the payoff
Thanks in advance
Hope
Karl says:
Please see the Ultimate Financial Calculator. Scroll down the page and check out the tutorials. See tutorial #1 to get started, and then tutorial #25 is for your specific case.
Stephen Nichols says:
I have a judgment from a court, at 6% per annum. I expect the defendant will not be able to repay me regularly, but want to track what and when she does pay and be able to tell her at any given time how much she still owes. I have set up a spreadsheet to calculate the balance and interest per month. Is there a way to give her a more exact figure should she pay mid-month, for instance, without putting together a daily amortization schedule? Monthly is hard enough.
Karl says:
The Ultimate Financial Calculator on this site is designed to handle this exact situation. Users can enter payments made on any date and the calculator will track the balance. On that page, scroll down for tutorials. Review #1 to get an overview. Then read #25 for step-by-step instructions to meet your specific need.
After looking at this calculator, and if you have a Windows computer, you may want to consider buying C-Value! (links on every page at the top). C-Value! will let you save your work so you can pickup from the last payment entered. The web calculator does not have the ability to save your entries.
Ann says:
I want to make our regular payment 1x a month and additional $500.00 a month to the principle. How do I calculate the interest saved by making the additional principle payment? Loan 179,000 for 27 months 3.75 interest rate. Regular payment 1076.71.
Is there a calculator available for this type of computing?
Karl says:
There are two calculators on this site that will do what you want. First I would try the Extra Payment Calculator. It calculates the interest saved and creates a schedule with the extra payments.
If you need a bit more flexibility, then try the Ultimate Financial Calculator. This is more flexible because it allows the user to make extra payments on any date.
Afer trying either, if you have any questions, feel free to ask them.
Dick Crawford says:
Using the remaining balance calculator, is there a way to change the loan date?
Karl says:
No, there is not. But you have two other choices for calculating a remaining balance where you can set the dates.
If you want a really accurate balance, then you can use this calculator since it allows the user to record each payment made along with the dates. If you try this one, scroll down the page to the tutorials and see tutorial #1 and #25.
You can also use this amortization schedule. If you use this calculator, enter the loan date, first payment date, loan amount, payment and interest rate. For the number of payments, enter a number after which you want to know the balance.
Hope this helps.
RON HARDIN says:
GREAT PROGRAM
Karl says:
Thank you, Ron. I appreciate that.
Laura Roberts says:
Is there an excel spreadsheet template for this calculator or a detailed calculation breakdown for this calculator?
Karl says:
It sounds as if you are asking for the equations used. Is that correct? If it is, that’s something I do not provide except on a fee/license basis. If I misunderstood, please clarify. If you are interested in purchasing a license, you can reach me via the contact link at the bottom of any webpage on this site.
Dick says:
I am trying to get a lease payment amount on the remaining balance calculator. There would be a balance of $2,500 after 26 bi-weekly payments. It will figure a payment if I use loan arrears, but when I use lease advance it will not compute. Am I doing something wrong?
Karl says:
Dick, I agree with what you are saying. It looks as if I need to revisit that calculation. It’s not working for me either.
One question.
If you want the balance after 26 biweekly payment to be $2,500, does that mean you want (A) the 27th payment to equal $2,500 to pay it off, or do you want the 27th payment to (b) equal $2,500 plus accrued interest since the 27th payment?
If (B), then you should use this balloon calculator.
I tried the calculation and it works. (Set the loan date and first payment date to be the same day for advance.
Dick says:
(A) the 27th payment to equal $2,500 to pay it off
Karl says:
Okay, in that case, you need to use the balloon payment calculator anyway. The difference between the two calculators is this:
The remaining loan balance calculator assumes the "Loan Balance After Payment" is the payoff amount for a loan immediately after a payment is received. There is no interest due since the last payment would have paid interest first and then principal.
The balloon payment calculator assume the "Final/Balloon Payment (can be 0)" is the payoff amount for the loan on the day a payment is due. That is, is also includes the interest accrued since the last payment.
A subtle, but important difference.
I confirmed that the balloon payment calculator will work when the payment is set to advance. (Set the loan date and first payment date equal).
Also, in case you ever need it, I have fixed the problem you reported with the remaining balance calculator. I’ll release an update over the weekend, so users will have it by Monday.
Dick says:
Thanks Karl. I did try using the balloon payment calculator, but the problem I am running into is that this is a lease so the first payment is due the day the lease is signed.
Dick says:
Karl, I figured it out. I did not see the additional tab to set the dates. Thank You
Karl says:
Right, that’s typical for leases.
That’s handled on the "Set Dates or Extra Payments" tab.
Set these two dates to be the same: