- 1). Write down the initial amount of the loan. For example, if you borrowed $10,000 to buy a car, write "$10,000."
- 2). Write down the amount of money you have paid toward the principal of the loan. For example, if you have paid $2,755 in principal, write "$2,755."
- 3). Subtract the number in Step 2 from the number in Step 1. For example, if you subtract $2,755 from $10,000, you would get $7,245. This means that $7,245 is your outstanding balance.