Present Value of Outstanding Balance Calculator

✖Existing Payment refers to the regular payment amount that a borrower is currently making towards a loan or debt obligation.ⓘ Existing Payment [EP]			+10% -10%
✖Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.ⓘ Rate of Interest per Annum [R]			+10% -10%
✖Frequency of Payments refers to how often payments are made within a specific period, such as daily, weekly, monthly, quarterly, semi-annually, or annually.ⓘ Frequency of Payments [n]			+10% -10%

✖Present Value of Outstanding Balance refers to the current value of the remaining balance on a loan or debt obligation.ⓘ Present Value of Outstanding Balance [PVOB]

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Formula

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Present Value of Outstanding Balance

Formula

`"PVOB" = "EP"*(1-(1+"R")^(-"n")/"R")`

Example

`"5242.106"="7505"*(1-(1+"0.56")^(-"4")/"0.56")`

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Present Value of Outstanding Balance Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)
PVOB = EP*(1-(1+R)^(-n)/R)
This formula uses 4 Variables

Variables Used

Present Value of Outstanding Balance - Present Value of Outstanding Balance refers to the current value of the remaining balance on a loan or debt obligation.
Existing Payment - Existing Payment refers to the regular payment amount that a borrower is currently making towards a loan or debt obligation.
Rate of Interest per Annum - Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.
Frequency of Payments - Frequency of Payments refers to how often payments are made within a specific period, such as daily, weekly, monthly, quarterly, semi-annually, or annually.

STEP 1: Convert Input(s) to Base Unit

Existing Payment: 7505 --> No Conversion Required
Rate of Interest per Annum: 0.56 --> No Conversion Required
Frequency of Payments: 4 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PVOB = EP*(1-(1+R)^(-n)/R) --> 7505*(1-(1+0.56)^(-4)/0.56)

Evaluating ... ...

PVOB = 5242.10566007827

STEP 3: Convert Result to Output's Unit

5242.10566007827 --> No Conversion Required

FINAL ANSWER

5242.10566007827 ≈ 5242.106 <-- Present Value of Outstanding Balance

(Calculation completed in 00.020 seconds)

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< 16 Debt Management Calculators

Levered Free Cash Flow

Go Levered Free Cash Flow = Net Income+Depreciation and Amortization-Change in Net Working Capital-Capital Expenditure-Net Borrowing

Present Value of Outstanding Balance

Go Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)

Home Equity Line of Credit

Go Maximum Line of Credit = Maximum Loan to Value Ratio*Appraised Fair Value of Equity-Outstanding Mortgage Balance

Breakeven Occupancy

Go Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income

Average Payment Period

Go Average Payment Period = Average Accounts Payable/(Credit Purchases/Number of Days in Period)

Paid-in-Kind Interest

Go Paid-in-Kind Interest = Paid-in-Kind Interest Rate*Beginning PIK Debt Balance

Senior Debt Ratio

Go Senior Debt Ratio = Senior Debt/EBIT and Depreciation and Amortization

Mortgage Refinance Breakeven Point

Go Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings

Debt Service Coverage Ratio

Go Debt Service Coverage Ratio = Net Operating Income/Annual Debt

Mortgage Constant

Go Mortgage Constant = Annual Debt Service/Total Loan Amount

Solvency Risk Ratio

Go Solvency Risk Ratio = Total Assets/Total Long Term Debt

Loan Constant

Go Loan Constant = Annual Debt Service/Total Loan Amount

Debtor Days

Go Debtor Days = (Accounts Receivable/Credit Sales)*365

Annual Debt Service

Go Annual Debt Service = Principal+Interest Amount

Net Debt

Go Net Debt = Gross Debt-Cash and Cash Equivalents

Overhead Rate

Go Overhead Rate = Overhead Costs/Revenue

Present Value of Outstanding Balance Formula

Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)
PVOB = EP*(1-(1+R)^(-n)/R)

What is Present Value of Outstanding Balance?

Present Value of Outstanding Balance refers to the current worth of the remaining payments required to satisfy a debt obligation. It takes into account factors such as the original principal amount borrowed, any interest or fees that have accrued, and the remaining time until the debt is due. Calculating the present value allows individuals or entities to understand the current financial liability represented by the outstanding balance. This information is important for financial planning, budgeting, and decision-making, as it helps determine the true cost and implications of the debt in today's terms. It's calculated by discounting future payments back to their current value using an appropriate discount rate. This approach considers the time value of money, recognizing that a dollar received today is worth more than a dollar received in the future due to factors such as inflation and the potential to invest that money elsewhere.

How to Calculate Present Value of Outstanding Balance?

Present Value of Outstanding Balance calculator uses Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum) to calculate the Present Value of Outstanding Balance, Present Value of Outstanding Balance refers to the current worth of the total amount owed on a debt or financial obligation. Present Value of Outstanding Balance is denoted by PVOB symbol.

How to calculate Present Value of Outstanding Balance using this online calculator? To use this online calculator for Present Value of Outstanding Balance, enter Existing Payment (EP), Rate of Interest per Annum (R) & Frequency of Payments (n) and hit the calculate button. Here is how the Present Value of Outstanding Balance calculation can be explained with given input values -> 5242.106 = 7505*(1-(1+0.56)^(-4)/0.56).

FAQ

What is Present Value of Outstanding Balance?

Present Value of Outstanding Balance refers to the current worth of the total amount owed on a debt or financial obligation and is represented as PVOB = EP*(1-(1+R)^(-n)/R) or Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum). Existing Payment refers to the regular payment amount that a borrower is currently making towards a loan or debt obligation, Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year & Frequency of Payments refers to how often payments are made within a specific period, such as daily, weekly, monthly, quarterly, semi-annually, or annually.

How to calculate Present Value of Outstanding Balance?

Present Value of Outstanding Balance refers to the current worth of the total amount owed on a debt or financial obligation is calculated using Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum). To calculate Present Value of Outstanding Balance, you need Existing Payment (EP), Rate of Interest per Annum (R) & Frequency of Payments (n). With our tool, you need to enter the respective value for Existing Payment, Rate of Interest per Annum & Frequency of Payments and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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