Loans
Balance after one payment
The balance falls by exactly the principal portion of the payment.
The Formula
B1 = P - Pr1
The balance falls by exactly the principal portion of the payment.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| B1 | Balance after first payment | currency | Opening principal less first-month principal. |
What Each Symbol Means
B1currency
Balance after first payment
Opening principal less first-month principal.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate an amortization schedule page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate An Amortization Schedule, filed under Finance. Every number the guide produces comes from substituting into this one line.