Remaining Balance on Loan Calculator
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How to use the tool
- Present Value (P) – type your current loan balance.
Example 1: 18,750 Example 2: 55,000 - Payment (PMT) – enter the regular instalment you send.
Example 1: 400 Example 2: 1,100 - Rate per Payment (r) – input interest for each payment period as a decimal.
Example 1: 0.0075 (0.75 %) Example 2: 0.004 (0.4 %) - Number of Payments (n) – add how many payments have passed or will pass.
Example 1: 48 Example 2: 36 - Press Calculate to view your remaining balance.
Formula used
The script applies the standard amortisation equation:
$$B = P(1+r)^{n} – PMT rac{(1+r)^{n}-1}{r}$$Example 1 result
P = 18,750, PMT = 400, r = 0.0075, n = 48 → B ≈ $3,845.
Example 2 result
P = 55,000, PMT = 1,100, r = 0.004, n = 36 → B ≈ $20,900.
Quick-Facts
- Fixed-rate mortgages commonly run 30 years (CFPB, 2022).
- Average U.S. mortgage balance: $329,000 in 2023 (Federal Reserve, FRED).
- Freddie Mac’s weekly survey put the 30-year rate at 6.6 % in Aug 2023 (Freddie Mac, 2023).
- “Even one extra payment per year can shorten a 30-year mortgage by several years” (CFPB, 2022).
- Most lenders cap loan-to-value at 80 % for favourable rates (Fannie Mae Selling Guide, 2023).
Frequently Asked Questions
What is the remaining balance formula?
The calculator uses $$B = P(1+r)^{n} – PMT rac{(1+r)^{n}-1}{r}$$, the standard amortisation equation cited in corporate finance texts (Berk & DeMarzo, 2020).
Why does paying extra cut interest so fast?
Extra money lowers principal sooner; future interest, computed on a smaller base, shrinks accordingly, saving thousands over long terms (CFPB, 2022).
Which rate should I enter?
Divide your annual nominal rate by payment frequency. A 6 % annual rate paid monthly becomes 0.5 % per month, or 0.005 as a decimal (Investopedia, 2023).
How do I pick the number of payments?
Count only the periods you want to measure. Enter 24 to see the balance after two years of monthly payments on a loan that may run longer.
Can I include ad-hoc lump sums?
Yes—first subtract lump-sum amounts from your current balance, then enter that adjusted figure as “Present Value” for a precise reading.
How accurate are the results?
For fixed-rate, level-payment loans, results differ from lender statements by pennies due to rounding; variable-rate loans require advanced models (Federal Reserve, 2019).
When is refinancing worthwhile?
Financial planners suggest refinancing when you cut the rate by ≥ 1 percentage point and recover closing costs within 36 months (NAR, 2022).
Do interest-only loans fit this tool?
No. Interest-only schedules lack principal amortisation, so the formula returns the original balance until principal payments begin (FDIC Consumer News, 2021).
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