- Principle + Charges = Balance
- Unearned + Earned = Charges
- Unearned = Interest not yet earned until loan has matured
- Earned = Interest earned to this point from current loan age
- Payoff + Unearned = Balance
- Payoff = Total due today if loan is paid off today. This will be an amount less some interest not yet earned.
- Balance = Total due on the loan if the loan matures to its maximum payments and all interest is earned.
Detailed Video Explaining the Unearned Interest Report