It's not always easy, and never fun, to keep track of how much you owe on a loan. Still, tracking your progress on paying down a loan keeps the loan picture -- and therefore your financial picture -- in sharp focus. You just need to do some basic arithmetic to calculate what remains on a promissory note.
Interest-Free Loan
Step 1
Get out the promissory note. Find the original amount to be repaid. For this example, suppose the loan amount is $12,000, where the principal equals $10,000 and the interest equals $2,000.
Step 2
Find your payment records either in a payment booklet, through an online account, or using cancelled checks or bank and credit card statements.
Step 3
Tally up your payments to date. For example, if you have made 10 payments of $700 each, your total equals 10 times $700, or $7,000.
Step 4
Deduct your total payments amount from the original note amount. For example, if your payments so far total $7,000, then your balance owed is $5,000.
References
Tips
- If you cannot find your loan and payment documentation, you can always contact the lender to get the balance owed.
Warnings
- If you have not made timely payments and your promissory note includes late-payment penalties, add those penalties to the amount you owe.
Writer Bio
D. Laverne O'Neal, an Ivy League graduate, published her first article in 1997. A former theater, dance and music critic for such publications as the "Oakland Tribune" and Gannett Newspapers, she started her Web-writing career during the dot-com heyday. O'Neal also translates and edits French and Spanish. Her strongest interests are the performing arts, design, food, health, personal finance and personal growth.