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Definition
The outstanding balance is the total currently owed on a facility: the remaining principal, plus accrued interest and any unpaid charges.
In plain terms
It is the "how much is left" figure. It falls with each repayment on an amortising loan, but on interest-only borrowing the principal stays put until the end.
Why it matters for your company
To clear a facility early you need the settlement figure, which builds on the outstanding balance plus any early repayment charge. Model it with the early settlement calculator.
Related reading
Principal
Principal is the original sum of money borrowed on a loan, before any interest or fees — the capital that…
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Settlement figure
A settlement figure is the exact amount to close a loan today — outstanding principal plus accrued interest…
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Accrued interest
Accrued interest is interest that has built up over time but has not yet been charged, paid or added to the…
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Amortisation schedule
An amortisation schedule is the table breaking every repayment into interest and capital, showing how the…
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