Average Balance

(redirected from Average Daily Balances)

Average Balance

The balance still owed on a loan or line of credit over a period of time. One calculates the average balance by adding the balance at the beginning of an accounting period to the balance at the end and dividing by two. It is also called the average daily balance.
References in periodicals archive ?
They find that regulations to limit fees had clear effects: over-limit fees dropped from an annual ized 1 percent of average daily balances to zero in February 2010.