For instructions on calculating finance charges, refer to How to calculate Finance Charges (BB264800).

The Loan Balance method includes any future transactions subject to a finance charge, whether automatically generated or manually added. Charges that are scheduled, but not yet generated, are not included in this calculation.

**The Formula**

Finance changes are calculated using the following formula:

(**Future Amount**) x (annual finance charge % / 365) x Days

If calculating based on a period of months:

(**Future Amount**) x (annual finance charge % / 12) x Months**How the Future Amount in the formula above is determined**

- Sum the unpaid charge balances as of the 'Calculate as of' date of all charges associated with a fee subject to finance charge with a transaction date that is greater then the 'Calculate as of' date.

**Note:**The unpaid charge balance is time sensitive. When looking at each individual charge, the system will disregard payments/credits with dates that fall after the 'Calculate as of' date that are applied to the charge.

- Sum the ungenerated advance deposits
^{(a)}(if selected) and ungenerated financial aid^{(b)}(if selected) to calculate the Total Credit Available.

- Future Amount = (Sum of unapplied charge balances in step 1) - (Total Credit Available calculated in step 2)

Once the Future Amount is determined the appropriate values can be inserted into the formula above.

Definitions of^{(a)}and^{(b)}above:

- How the system calculates ungenerated advance deposit

For each advance deposit that was fully funded as of the 'Calculate as of' date, sum the amounts of all of its credits with a schedule date on or before the 'Calculate as of' date, regardless if the credit has already been generated. This gives you the ungenerated portion per advance deposit. Sum all of the ungenerated portions.

- How the system calculates ungenerated financial aid

For each financial aid, sum the amounts of all of its credits with a schedule date on or before the Calculate as of date, regardless if the credit has already been generated. This gives you the ungenerated portion per financial aid. Sum all of the ungenerated portions.

- Sum the unpaid charge balances as of the 'Calculate as of' date of all charges associated with a fee subject to finance charge with a transaction date that is greater then the 'Calculate as of' date.