Unpaid Balance Calculator

Formula

The formula to calculate the unpaid balance is:

\[ \text{UB} = (\text{PB} \times \frac{\text{I}}{100}) + \text{PB} - \text{DP} + \text{AP} \]

Where:

$ \text{UB} $ is the unpaid balance ($)
$ \text{PB} $ is the previous balance ($)
$ \text{I} $ is the interest rate (%)
$ \text{DP} $ is any down payments made on the balance over the last month ($)
$ \text{AP} $ are additional purchases in the last month ($)

Example Calculation

Let's consider an example:

Previous Balance (PB): 1000 $
Interest Rate (I): 5 %
Down Payments (DP): 200 $
Additional Purchases (AP): 150 $

Using the formula to calculate the unpaid balance:

\[ \text{UB} = (1000 \times \frac{5}{100}) + 1000 - 200 + 150 = 50 + 1000 - 200 + 150 = 1000 $ \]

This demonstrates that with a previous balance of 1000 $, an interest rate of 5 %, down payments of 200 $, and additional purchases of 150 $, the unpaid balance is 1000 $. ✅