Loan Balance Calculator

Understanding Your Remaining Loan Balance

When you make monthly payments on an amortized loan such as a mortgage, auto loan, or personal loan, each payment is divided into two components: principal repayment and interest charges. In the early stages of a loan, a larger share of each payment goes toward interest. Over time, as the principal balance decreases, an increasing portion of your monthly payment goes toward reducing the principal.

How Loan Balance is Calculated

The remaining principal balance $B$ after $p$ payments on a loan with initial amount $P$, monthly interest rate $i = r/12$, and monthly payment $M$ can be expressed as:

$$B = P(1+i)^p - M \frac{(1+i)^p - 1}{i}$$

This online calculator tracks your remaining balance, total interest paid to date, and percentage paid off in real time as you adjust your payments made or loan terms.

Why Track Remaining Principal?

Monitoring your remaining loan balance helps when planning loan refinancing, making extra principal prepayments, assessing equity built in assets, or comparing loan payoff options.