How to Calculate the Balance Owed on a Promissory Note
- 1). Establish the amount of money initially owed on the promissory note. This is the amount that the note indicates is to be repaid. The total is usually listed, but if not you will need to calculate it based on the number and value of the payments. For example, if the note calls for 12 payments of $1,000, then the amount owed would be $12,000.
- 2). Calculate the total amount of payments made on the note. Only include payments made toward the balance, not interest payments or fees such as late payment penalties. Add the total value of all the payments made on the balance.
- 3). Subtract the payments made on the balance from the initial amount owed. This will give you the balance owed on the promissory note. For example, if the initial amount owed was $10,000 and you've made $8,000 in payments, the balance would be $2,000.