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Loan Balance Calculator

Loan balance is the net amount that is left along with the interest on loan after paying a certain sum of money to the lender. Loan balance can be calculated through the online loan balance calculator.

Loan Balance Amount Calculator

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Table of Contents:

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    Formula

    B = (A * (1+r)n) - [ (P/r) * ((1+r)n- 1 ) ]

    Where,
    B = Balance Amount
    A = Loan Amount
    P = Payment Amount
    r = Rate of Interest (compounded)
    n = Number of time periods

    Rate of Interest compounded is,
    If Monthly,
    r = i / 1200

    If Quarterly,
    r = i / 400

    If Half yearly,
    r = i / 200

    If Yearly,
    r = i / 100

    The amount remaining to be paid toward an obligation of loan is known as loan balance. It is also known as the balance of loan or depositary account

    Example:
    Calculate the loan balance for the given details:
    Loan Amount (A): 1000000
    Payment Amount (P): 10000
    Rate of Interest (i): 5
    Number of time periods (n): 60
    Rate of Interest Compounded: Monthly

    Solution:
    Apply formula:
    B = (A * (1+r)n) - [ (P/r) * ((1+r)n - 1 ) ]
    B = (1000000*(1+0.05)60-[(1000/0.05)*((1+0.05)60-1)]
    B = 603316.47

    Therefore the loan balance is 603316.47