# How to Calculate the Balance Owed on a Promissory Note

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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.

## 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.