1. What is Bank Balance?

Bank balance represents the amount of money in an account at any given time. It's calculated by considering all deposits, withdrawals, and any interest earned or fees charged.

2. How Does the Calculator Work?

The calculator uses the bank balance formula:

Where:

• \( Deposits \) — Total amount deposited (USD)
• \( Withdrawals \) — Total amount withdrawn (USD)
• \( Interest \) — Interest earned (USD)

Explanation: The formula accounts for all money coming into the account (deposits and interest) and money going out (withdrawals).

3. Importance of Bank Balance Calculation

Details: Knowing your accurate bank balance helps with financial planning, avoiding overdraft fees, and maintaining good financial health.

4. Using the Calculator

Tips: Enter all amounts in USD. Include all deposits, withdrawals, and interest for the period you're calculating. Values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include pending transactions?
A: For most accurate current balance, only include cleared transactions. For available balance, you might include pending deposits.

Q2: How often should I check my balance?
A: Regular checking (weekly or before major purchases) helps avoid overdrafts and detect unauthorized transactions early.

Q3: Why is my calculated balance different from the bank's?
A: Differences may occur due to pending transactions, fees, or interest that hasn't posted yet.

Q4: Should I include bank fees in withdrawals?
A: Yes, any fees charged by the bank should be included in the withdrawals total.

Q5: How does compound interest affect the balance?
A: For precise calculations over time, you'd need to account for compounding periods, but this calculator uses simple interest for a specific period.