# Remaining Balance Calculator

Principal Balance with Payment Schedule

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 distinction is essential to understand. More below

Enter a "0" (zero) for one unknown value above.

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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 report 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 payment 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!

Remember, there are a lot of financial calculators on this site. If you can't find what you need, ask. Remaining balance and loan payoffs are essential calculations, and this site is here to help. Whether you hold the note or are the borrower, "don't under collect, don't overpay."

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