1. Matching principal and interest: monthly repayment amount = principal * monthly interest rate *[(1+ monthly interest rate) n/[(1+monthly interest rate) n-1], where n represents the number of months of loan, and n represents the power of n, such as 24, which represents the power of 24 (2 years and 24 months of loan).
2. average capital: monthly repayment amount = principal /n+ residual principal * monthly interest rate, and total interest = principal * monthly interest rate * (loan months /2+.5).
the difference between average capital and equal principal and interest
1. The monthly repayment amount is different
The monthly repayment amount in average capital is decreasing, and the repayment by average capital will fix the repayment amount of the same principal every month, while the interest payment amount will decrease with the passage of months. Matching principal and interest is to repay the same amount every month, and interest accounts for a large proportion in the early repayment amount.
2. The interest generated is different
The total interest for repayment of equal principal is less than that for repayment of equal principal and interest. For example, the loan is 5, yuan, the loan period is one year, and the annual interest rate of the loan is 4.35%. The total interest for repayment of equal principal is 2356.25 yuan, and the total interest for repayment of equal principal and interest is 2371.88 yuan.
3. Different suitable people
average capital is suitable for people with higher income in the early stage and lower income in the later stage. Matching principal and interest is suitable for people with fixed income every month.
4. Different advantages and disadvantages
The advantage of average capital is that it can save more interest, which is conducive to early repayment, while the disadvantage lies in the great pressure of early repayment. The advantage of equal principal and interest is that the monthly repayment pressure is less, and the disadvantage is that more interest needs to be paid and it is not conducive to early repayment.