Enter the opening balance, transactions, and any charges or credits into the calculator to determine the closing balance.

Closing Balance Calculator

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Closing Balance Formula

The following equation is used to calculate the Closing Balance.

CB = OB + T + I - F
  • Where CB is the closing balance ($)
  • OB is the opening balance ($)
  • T is the net total of all transactions ($)
  • I is the total interest earned ($)
  • F is the total fees or charges ($)

To calculate the closing balance, start with the opening balance, add or subtract all transaction amounts, then add interest and subtract any fees.

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, determine the net transactions. Say there was a $500 deposit and a $200 withdrawal. In total, 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?

Interest typically increases the balance (if positive) while fees reduce the amount in the account. Both should be included in the calculation of the closing balance to get an accurate figure.