Remaining Balance Calculator
The remaining balance calculator calculates a loan’s principal balance after a specific payment number. It is not the loan balance that is due on the payment date. This distinction is essential. More below…
The Calculator-Calculate a Loan’s Current Principal Balance
Information
Remaining Balance Explained
The Accurate Remaining Balance Calculator calculates any loan's unpaid principal balance.
- Create a printable schedule.
- Solves for multiple unknowns.
The key to understanding the distinction is understanding accrued interest. When a payment is due and paid, the principal owed is the balance shown on the amortization schedule. That is the remaining balance, and that is what this calculator calculates.
One day later, after the payment is made, the balance is no longer the same as it was the prior day.
There is one day of interest on the previous day’s balance. This interest is called accrued interest, and it is the reason the interest balance (and therefore the loan balance) increases each day until the next payment.
The report shows this repeating pattern. A payment is applied first to accrued interest. The remaining amount reduces principal. The amortization table then shows the balance after the payment (plus or minus a small rounding adjustment).
If you want to know the payoff amount (balance), including accrued interest, use the balloon payment calculator. A balloon payment equals the prior period’s loan balance plus accrued interest. That is, the balloon amount equals the balance on a scheduled due date, before any payment is applied.
Other uses for this Loan Balance Calculator
Need a loan with a specific balance?
A borrower may want to make periodic payments that result in a specific balance after four or five years. What payment amount will meet this objective?
The calculator will compute it.
Enter the loan amount, interest rate, and payment number (48 months, for example, for four years). Then, instead of entering 0 for the loan balance after a payment number, enter the balance you want and enter 0 for the periodic payment.
Pay the calculated periodic payment, and the loan balance will equal the amount you entered.
Review the payment schedule to confirm the result.
You can also calculate a particular loan amount or interest rate using the same approach.
You can also calculate when the balance will reach a specified amount.
The calculator is highly flexible.
There are many financial calculators on this site. If you cannot find what you need, ask. Remaining balances 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.”
Remaining Balance Calculator Help
The remaining balance calculator calculates the principal balance after a specified payment number. For example, if you have a four-year car loan and you have made 18 monthly payments (one and a half years), this calculator will show the loan balance.
Given a desired remaining balance, the calculator can also calculate one of the four other inputs. Use the calculator to determine the periodic payment required to reach a specific balance after “X” payments.
To calculate a loan balance, enter the original loan amount (for example, $28,500). Enter 6.5% for the “Annual Interest Rate” and 18 for “Balance After Payment (#).” Enter your “Periodic Payment.” We will assume $675.88. Enter “0” (zero) for “Loan Balance After Payment #.” Leave the other settings at their default values. Click the “Calc” button. (If you want to see a detailed schedule, click “Payment Schedule,” or to see charts, click “Charts.” With this calculator, you do not need to click “Calc” first.) The result is $18,667.96.
Note: The actual balance may vary slightly. The calculator shows the balance after the payment. If days have passed since the payment, additional interest accrues for those days. 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 set to “Arrears” for loans. Use “Advance” when finding the balance of a lease. The difference is straightforward: if the first payment is due and paid on the same date the loan is made, set this option to “Advance.” Otherwise, set it to “Arrears.”
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 $2,500 to pay it off
Karl says:
Okay, in that case, you need to use the balloon payment calculator anyway. The difference between the two calculators is this:
The remaining loan balance calculator assumes the "Loan Balance After Payment" is the payoff amount for a loan immediately after a payment is received. There is no interest due since the last payment would have paid interest first and then principal.
The balloon payment calculator assume the "Final/Balloon Payment (can be 0)" is the payoff amount for the loan on the day a payment is due. That is, is also includes the interest accrued since the last payment.
A subtle, but important difference.
I confirmed that the balloon payment calculator will work when the payment is set to advance. (Set the loan date and first payment date equal).
Also, in case you ever need it, I have fixed the problem you reported with the remaining balance calculator. I’ll release an update over the weekend, so users will have it by Monday.
Dick says:
Thanks Karl. I did try using the balloon payment calculator, but the problem I am running into is that this is a lease so the first payment is due the day the lease is signed.
Dick says:
Karl, I figured it out. I did not see the additional tab to set the dates. Thank You
Karl says:
Right, that’s typical for leases.
That’s handled on the "Set Dates or Extra Payments" tab.
Set these two dates to be the same:
chase priester says:
what is my ending balance if my principal is 80$ and my interest rate is 10% over 3 years.
Karl says:
I think you want to know the future value if the money were invested, right? Not the balance if it’s borrowed? The remaining balance calculator is for loans.
If this is an investment, then please see the future value calculator or savings calculator which allows for additional deposits along the way if you ever need that feature.
chase priester says:
thank you, I will look into that.
Gian Hodgson says:
Hi, when I try to calculate remaining balance after payment# 1 it calculates it as if 2 payments have been made. So:
Amount of Loan = 2,000
Annual rate = 10%
Balance after Payment = 1
Periodic Payment = 200
Loan Balance after payment = 0
The result says Total Principal & Interest = $400
Shouldn’t it be 200?
Karl says:
hi Gian, you are correct. The calculator has what is known as a "one off" error, but only if the user sets the "Balance After Payment" to 1. The "Loan Balance After Paymen" is calculated correctly either way.
The problem is, the "Total Interest Paid" and "Total Principal & Interest" show the same value whether the user enters 1 or 2 for balance after period.
For accurate numbers, please look at the schedule. I’ll fix this shortly and I’ll let you know once I do.
Karl says:
Gian, I fixed the problem when calculating the loan’s remaining balance after one payment. Thank you for taking your time to let me know, and sorry again for the problem.
If you do not see the fix, you may have to perform a hard refresh of the page:
Depending on your operating system all you need to do is the following key combination:
Above, from Refresh Your Cache.
Matt says:
Is there a calculator that will show me my descending monthly payment on a loan of $20,000 @ 11.5% interest over 60 months?
Thanks.
Karl says:
For starters, you can use this loan calculator.
If you really want a descending payment, set the "Amortization Method" to "Fixed Principal."
However, if you are in the U.S., normally payments are not descending – they are level. The amount that is allocated to interest each period is descending. And if this is what you want you would need to leave the "Amortization Method" set to "Normal."
Let me know if you have any other questions.