Loan Balance Calculator

Created by Tomasz Jedynak, PhD and Wei Bin Loo
Reviewed by Bogna Szyk and Adena Benn
Based on research by
Cipra T. Financial and Insurance Formulas; 2006
Last updated: Nov 09, 2023

The loan balance calculator allows you to compute the remaining balance of your loan. If you want to quickly check how much you still have to repay – you have found the right tool. Our universal loan balance calculator may be used as a
personal loan calculator remaining balance calculator, a car loan balance calculator, or a mortgage balance calculator. All you need to do to calculate the remaining loan balance is to fill in the appropriate fields below.

How to use our loan balance calculator

First of all, enter the original loan terms:

  • The loan amount,

  • The loan interest rate on a yearly basis. (Don’t you know how to calculate annual interest based on monthly or quarterly interest rates? Use our APY calculator),

  • The loan term,

  • the time that has passed by since you took a loan.

That’s all! The amount in the field loan remaining represents the value of your remaining loan.

Example of use of the remaining balance calculator

Let's try the loan balance calculator as a simple example.

  • On 1st May 2016, you borrowed 10,000 USD to buy a new car (it was a standard car loan).

  • The payback period was set as five years.

  • The interest rate on the loan was set as 5% (want to know what is your monthly payment? See our simple interest calculator).

  • Now, it is May 2018. The question is how much you still owe to the bank.

The answer provided by our loan balance calculator is that your remaining loan balance is 6,297 USD.

Formula for remaining loan balance

In order to calculate the remaining loan balance, you need to apply the following formula:

loanremaining=loan×(1+r)kloan×(1+3)n1r\small \begin{split} \mathrm{loan}_{\mathrm{remaining}}& = \mathrm{loan}\times(1+r)^k \\ &- \mathrm{loan}\times \frac{(1+3)^n-1}{r} \end{split}


  • loan\mathrm{loan} — The amount of loan;
  • rr — The interest rate expressed on a monthly basis;
  • nn — The loan term, which is the period for which the loan was granted; and
  • kk — The time that has passed since you have taken a loan.

Do you want to be financially smart? Try our other personal finance calculators.

Why do people take loans?

There are dozens of reasons why people take out loans. Among the most popular, there are needs such as:

  • Car purchase - A car loan is one of the most popular types of loan. Usually, the cost of buying a car is a few times higher than your salary, so you need to find additional money to buy it.

  • Home renovation or improvement - Most of us always have something to improve in the house. You can finance these costs by taking a bank loan.

  • Vacations/dreams - Sometimes, the realization of our dream requires a lot of money (e.g., traveling, ideal wedding, unforgettable party), as you can see with our dream come true calculator.

  • Medical expenses - Sometimes, people are forced to borrow money to cover their unexpected medical expenses.

  • Bill consolidation - Nowadays, almost everyone has bills or debt of some sort. You can decide to consolidate your debts into just one loan. There are two reasons to do it: convenience (you have only one debt) and costs (in a consolidated loan, the interest rate is usually lower).

Moreover, one of the most popular types of loan is a mortgage, which allows you to finance the purchase of a home.


What increases your total loan balance?

Your total loan balance can increase due to factors such as accrued interest on the principal amount, late payment fees, and any additional funds borrowed against the original loan.

What is principal balance on a loan?

The principal balance on a loan is the remaining amount you owe, not including interest or additional fees. It's the original loan amount minus any repayments made towards the principal.

How do I calculate the loan balance?

You can calculate loan balance in four steps:

  1. Determine the loan amount.
  2. Compute the interest rate.
  3. Determine the loan term (n) and the period passed since the loan (k).
  4. Apply the loan balance formula: loan balance = loan × (1+r)^k + loan × ((1+3)^n - 1) / r.

What is the remaining loan term for a 25-year loan after 10 years?

The remaining loan term will be 15 years. You can calculate this by subtracting the time passed from the loan term.

Tomasz Jedynak, PhD and Wei Bin Loo
Interest rate
Loan term
Loan remaining
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