Calculate a closing balance from the opening balance plus deposits and interest, minus withdrawals and fees, or solve for any one missing amount.
Closing Balance Formula
The following equation is used to calculate the Closing Balance.
- Where CB is the closing balance ($)
- OB is the opening balance ($)
- T is total additions minus total deductions, excluding separately entered interest and fees ($)
- I is the total interest earned ($)
- F is the total fees or charges ($)
Choose the quantity to solve for and enter the other five USD amounts. Use 0 when an amount is absent. Enter up to four decimal places. Additions and interest are added; deductions and fees are subtracted. Keep interest and fees out of transaction totals to avoid double counting.
What is a Closing Balance?
Definition:
A closing balance is the amount remaining in an account at the end of a specific period after all deposits, withdrawals, interest, and fees have been accounted for.
How to Calculate Closing Balance?
Example Problem:
The following example outlines the steps and information needed to calculate the Closing Balance.
First, determine the opening balance. In this example, the opening balance is $1,000.
Next, enter total additions of $500 and total deductions of $200. Their net transaction amount is T = $300.
Then, determine any interest or fees. Suppose you earned $15 in interest and paid a $5 fee.
Finally, calculate the closing balance using the formula above:
CB = OB + T + I – F
CB = 1000 + 300 + 15 – 5
CB = $1,310
FAQ
What is the difference between the opening balance and the closing balance?
The opening balance is the amount in an account at the start of a period, while the closing balance is what remains after adding deposits, subtracting withdrawals, and accounting for any interest and fees over that period.
Can a closing balance be negative?
Yes, a closing balance can be negative if withdrawals, fees, or other deductions exceed the account’s initial balance plus any credits and interest.
How do interest and fees affect the closing balance?
Positive interest credited increases the balance, while positive fees reduce it. Enter negative amounts only for reversals. Include each amount once; the calculator summarizes entered amounts and does not estimate accrued interest or pending transactions.
