1. law of average capital repayment
The so-called equal principal repayment means that only the borrower repays the same principal every month, but the loan interest repaid every month will decrease with the decrease of the remaining unpaid principal, so the final monthly repayment amount is also in a decreasing state.
If the borrower chooses the repayment method of equal principal, the monthly repayment principal = total loan amount and loan months; Monthly repayment interest = remaining unpaid principal * monthly interest rate; Monthly payment = total loan amount, remaining unpaid monthly loan principal * monthly interest rate; Total loan interest = [(monthly loan repayment interest rate) total loan repayment months * (interest rate 1 month)] 2 * repayment months-total
For example, the loan amount is 6,543,800 yuan, the loan term is 5 years, the annual interest rate of the loan is 4.75%, and the total interest generated by the average capital repayment method is 654.38+ 02,072.92 yuan.
2. Equal principal and interest repayment method
The so-called matching principal and interest means that the borrower pays the same amount every month, but the proportion of principal and interest in the monthly payment is different.
If the borrower chooses the repayment method of equal principal and interest, the monthly repayment amount = (total loan interest) loan months; Total loan interest = repayment amount for several months-loan principal.
For example, if the loan amount is 6,543,800 yuan, the loan term is 5 years, and the annual interest rate of the loan is 4.75%, the repayment method of equal principal and interest is selected, and the total interest is 1254 1.47 yuan.
As can be seen from the above, when the loan principal, interest rate and term are the same and the repayment methods are different, the final loan interest will be different.
Kangbo Financial Company released this information in order to spread more information. The content of the article is for reference only and does not constitute any decision-making suggestions for you.
Related questions and answers: How to calculate the loan interest? Calculation method of bank loan interest: Generally, compound interest is calculated on a monthly basis. There are two ways to repay by installments: one is equal principal and interest, and the other is average principal. Short-term debt service can also be paid in one lump sum. Next, the loan bank will repay 60,000 yuan a year (12 months), according to the current annual loan interest rate of 5.3 1% (monthly interest rate: 5.31%12). How to calculate the loan interest: 1. Repay the principal and interest in one lump sum, totaling 60,000 * (1+0.4425%)12 = 63,264.69 yuan. 2. Repayment by installment. Equal repayment of principal and interest. Each installment (monthly) has the same repayment of principal and interest. Monthly repayment amount: [60000 * 0.4425% * (1+0.4425%)12]/[(1+0.4425%)1] 12=6 1739.76 yuan (note: 12 is the power of 12) 3. Installment repayment, equal principal repayment means unequal interest repayment, which is getting less and less. The principal is repaid every month, and the interest is decreasing 16000 yuan. 1 year (12), the monthly repayment of principal is the same: 60000/ 12=5000 yuan, the first month repayment = the first month principal+the first month interest: the repayment amount: 5000+60000 * 0.4225% = 5225%. 0.4225%=5232.38 Third month repayment: 5000+(60000-5000 * 2) * 0.4225% = 521.25, and so on: 5000+[60000-5000]. Interest amount: 6 1725.75 The calculation results are as follows: 1, February 5265.5 (yuan), March 5243.38 (yuan), April 522 1.25 (yuan), 5199.655. 5 132.75 (yuan) August 5 1 10.63 (yuan) September 5088.5 (yuan)10,5066.38 (yuan)/kloc-0. 5022. 13 yuan: loan amount, loan term and loan interest rate = loan amount * loan interest rate * loan term = loan amount * loan interest rate * loan term = loan amount * days * daily interest rate = loan amount * months * monthly interest rate = loan amount * years * annual interest rate = months * 30 days+odd days (. 4 * 30+24 = 1 44 June1day to May 24) Daily interest rate = annual interest rate /360-month interest rate = annual interest rate/12 Relevant laws stipulate that if the loan interest rate exceeds 24%, the law will no longer protect the rights and interests of creditors. If it exceeds 36%, the court will directly rule it invalid. If the amount exceeds 24% and the amount is less than 36%, the debtor can still collect the money without bringing a lawsuit. If the debtor sues, the court will not support the collection. The safety line with the highest loan interest rate is 24%, and the debtor must repay the principal and interest unconditionally. If compared with this safety line, most loan interest rates on the market are not high, at least the products with the highest bank loan interest rate are lower than it. There are also some non-bank loans in the market with relatively high interest rates. Its high interest rate may not be obvious, not in external publicity, but in the actual interest-bearing method. Let me give you an example. Let's see if its interest rate is high or low. According to the public notice, the loan is 6,543,800 yuan, and the monthly repayment is 9,000 yuan, and the repayment is 654.38+ 02, which is cost-effective and the annual interest rate is 8%. Is this interest rate very low? For pure credit loans, the annual interest rate of 8% is already relatively low, and there are certainly lower ones, but the annual interest rate of 8% is definitely not high, which is far from 24%. Is that so? As can be seen from this example, the repayment method is equal principal and interest. The calculation method of 8% is (9000 *12-100000)/100000 = 8%. In fact, this calculation is wrong. Its mistake lies in taking the repaid principal as the denominator for calculating the interest rate. The correct calculation should be that the interest is not calculated according to the repaid principal, but calculated by an equal principal and interest calculator. The loan interest rate of 6,543,800 yuan with a monthly repayment of 9,000 yuan is about 654.38+ 05%.