Your bank statement and your checkbook register almost never show the same balance on the same day, because each side knows about transactions the other doesn’t yet. Reconciling — “balancing the checkbook” — adjusts both balances for those timing differences. When the adjusted figures agree, you know your records are right; when they don’t, the difference tells you where to look.
How to use the checkbook balance calculator
- Enter the statement ending balance from your bank statement.
- List deposits in transit, one per line, with the amount last.
- List outstanding checks and debits — payments in your register that are not on the statement.
- Enter your register (checkbook) balance as of the same date.
- Enter bank fees and interest or credits that appear on the statement but not yet in your register.
- The tape shows whether you are balanced, or by how much you are out, with hints for finding the error.
Bank reconciliation formulas
A difference of $0.00 means the checkbook is balanced.
Worked example
Bank side. Statement balance $2,486.20 + deposit in transit $450.00 − outstanding checks ($125.40 + $89.99 + $300.00 = $515.39) = $2,420.81
Register side. Register balance $2,431.81 − $12.00 service fee + $1.00 interest = $2,420.81
Difference = $0.00 — the checkbook is balanced. Record the fee and the interest in the register so it matches going forward.
Finding a difference
| Clue | Likely cause |
|---|---|
| Difference equals one transaction | An item is missing from the register or from your outstanding list |
| Difference is twice an amount | That item was added instead of subtracted, or vice versa |
| Difference divisible by 9 | Two digits were transposed (e.g. 72 written as 27) |
| Difference in cents only | A typo in the cents, or a small fee or interest payment |
| Difference grows each month | An automatic payment or fee is never being recorded |
Work through the statement line by line and tick each item in your register. Anything unticked in the register is outstanding; anything unticked on the statement needs to be recorded.
A monthly routine
- Reconcile as soon as the statement arrives, while the month is fresh.
- Carry forward any checks still outstanding to next month’s list.
- Investigate any check outstanding for more than 90 days — it may have been lost.
- Report unrecognized charges to your bank promptly. Under the federal Electronic Fund Transfer Act and Regulation E, how quickly you report an unauthorized electronic transfer affects how much you could be liable for.
To build the register itself with a running balance, use the checkbook register calculator. For adding up a stack of receipts first, the adding machine keeps a printable tape.
This tool helps you check your own records; it is not a bank statement. Your bank's records govern your account balance.
Frequently asked questions
How do I balance my checkbook?
Start with the bank statement's ending balance, add deposits you've recorded that the bank hasn't, and subtract checks and payments that haven't cleared. Then take your register balance and subtract bank fees and add interest you hadn't recorded. The two adjusted balances should match.
What is a deposit in transit?
It is a deposit you made and recorded that the bank had not yet posted by the statement date, such as a check deposited on the last day of the month. It belongs on the bank side of the reconciliation.
What is an outstanding check?
A check or payment you wrote and recorded in your register that had not cleared the bank by the statement date. Subtract it from the statement balance. Checks that stay outstanding for months are worth following up.
My checkbook is off by an amount divisible by 9. Why?
A difference that divides evenly by 9 often means two digits were transposed, such as $54 recorded as $45. A difference equal to twice an item often means that item was added instead of subtracted.