I believe many people have borrowed money from banks. Whether it is an emergency or buying a car or a house, most people need to go to the bank for a loan. Then the interest on bank loans has become a concern for everyone. Do you all know how to calculate the interest on bank loans? Let me look at the algorithm of bank loan interest with you.

How to calculate the loan interest of the bank?

We all know that the formula for calculating interest is: interest equals principal times interest rate times time. Interest is calculated according to the loan interest rate of the People's Bank of China.

1, loans within 6 months: the loan interest rate within 6 months is 4.35%, so the interest is the principal multiplied by 4.35% multiplied by 6 months;

2. If the loan is within 6 months to 1 year: the loan interest rate within 6 months to 1 year is 4.35%, then the interest is the principal multiplied by 4.35% multiplied by the specific number of days;

3. If the loan is within 1 year to 5 years, and the loan interest rate within 1 year to 5 years is 4.75%, then the interest is the principal multiplied by 4.75% multiplied by the specific number of days;

Loans for more than 4.5 years: the interest rate of loans for more than 5 years is 4.9%, so the interest is the principal multiplied by 4.9% multiplied by 5 years.

The bank's loan interest rate is not always fixed, but controlled by the state and will be adjusted accordingly according to the economic situation every year. After the above, you should know how to calculate the interest of bank loans.