Calculate your projected available balance from your posted balance, pending debits, holds and new deposits, and see what you can spend after a reserve.
Available Balance Formula
Start with a posted ledger balance. Add only additional available deposits not already included, subtract unposted debits and separate holds once, and optionally add protection to estimate transaction capacity. Protection is shown separately from own funds.
Variables:
- AB is estimated transaction capacity including optional protection
- LB is the posted ledger balance before the separate adjustments
- Da is the portion of deposits available now
- P is pending debit-card, ACH, check, or bill-payment debits
- H is card holds or account reserves
- O is available overdraft protection or linked-account coverage
The modeled transaction capacity after setting aside a reserve is:
Reserve Capacity = max(0, AB - R)
R is the reserve to leave untouched. This arithmetic is a planning estimate, not a guaranteed safe transaction. A zero capacity can still mean the reserve is underfunded. Bank rules, posting order and adjusted merchant authorizations affect settlement. Enter dollar amounts in whole cents, up to one trillion dollars per input.
Available Balance Scenarios
The table shows how pending items and holds change a $2,500 ledger balance.
| Available deposits | Pending debits | Holds | Overdraft protection | Estimated available |
|---|---|---|---|---|
| $0 | $0 | $0 | $0 | $2,500 |
| $500 | $275 | $100 | $0 | $2,625 |
| $0 | $800 | $250 | $0 | $1,450 |
| $0 | $2,700 | $0 | $500 | $300 |
Example Problems
Example 1: Find the current available balance.
A checking account shows a $2,450 ledger balance. It has $500 of deposits available now, $275 of pending debits, a $100 card hold, and no overdraft protection. Available balance is 2450 + 500 - 275 - 100 = $2,575.
Example 2: Keep a reserve.
Using the $2,575 available balance above, you want to keep $300 untouched. The maximum planned transaction is 2575 - 300 = $2,275. A $250 purchase would leave an estimated $2,325, which remains $2,025 above the reserve.
Frequently Asked Questions
What is the difference between ledger balance and available balance?
The ledger balance reflects transactions that have posted to the account record. Available balance adjusts for funds the bank currently allows you to use, which can include holds, pending debits, and deposit availability.
Should pending deposits always be added?
No. Add only the portion that the bank says is available now. A deposited check can appear in the account while some or all of it remains on hold.
Does overdraft protection count as my money?
No. It can increase transaction capacity but may be a credit line or transfer from another account, possibly with fees or interest. The calculator reports own funds separately from the optional protection amount.
