- We present a microscopic derivation of the master equation for the condensate density matrix for an interacting Bogoliubov-Bose gas of N atoms. We choose the interaction Hamiltonian in a special way that substantially simplifies the master equation, yielding no coupling between diagonal and off-diagonal terms. The present formulation allows us to solve the problem analytically in a steady state and obtain the expression for the distribution function and equilibrium condensate fluctuations. For the first two central moments, our results are equivalent to those obtained in the canonical-ensemble quasiparticle formalism, in the low-temperature range where these papers are valid, but also give an accurate description at high temperatures. The present analysis for an interacting Bose gas is as accurate as the master equation approach of Kocharovsky is for an ideal gas. 2010 The American Physical Society.