What Is an Account Balance?

An account balance is the amount of money in a financial repository, such as a savings or checking acco𓆏unt, at a specific time. It factors in all debits and crediꦕts. Account balances are also shown on billing statements for credit cards, utilities, and loans.

Calculating Account Balances

An account balance reflects total assets minus total liabilities. In banking, the account balance is the money available in a checking or savings account. It's the net amount available after all deposits and credits have been balanced with any charges or debits.

An account balance for investments in brokerage accounts can change daily as security prices rise and fall in the market. Other types of accounts also have an account balance, such as a utility bill or a mortg🙈age loan. The account balance for these accounts shows the amount owe෴d.

Examples of Account Balances

For example, a cre🌳dit card might have several purchases and a refund ch🦂arge. The amounts posted might be $100, $50, and $25, and a returned item that costs $10. The account balance includes purchases totaling $175 and items returned for $10. The net of the debits and credits is $165, or $175 minus $10, which is the account balance.

For a checking account, if the starting balance is $500, and a check f🌠or $1,500 is received, but an automatic payment is scheduled for $750, the account ෴balance might show $2,000 immediately, but the actual account balance is $1,250.

Account Balance vs. Available Credit

For credit cards, account balances represent the total debt owed at the start of the statement date and include any debt rolled over from previous months with interest charges. Available credit is the term used alongside the account balance to indicate 澳洲幸运5官方开奖结果体彩网:how muඣch of the credit line is left to spend.

The Bottom Line

An account balance represents the available funds in a financial account, such as a checking, savings, or investment account. A brokerage account balance can change daily as security prices rise and fall in the market. A bank account balance can be inaccurate if pending transactions exist but haven't yet been posted or recorded.