At present, there are two methods to calculate the interest of long-term loans in China: simple interest and compound interest:
1. Simple interest refers to an interest-bearing system that only calculates the interest according to the loan principal, and the unpaid interest generated in the previous period is not added to the principal for repeated interest. Its calculation formula is as follows: loan interest amount = principal x interest rate x number of periods.
Because the amount of long-term loans is generally large, in accounting, according to the accrual principle and the principle of importance, the interest expense of long-term loans needs to be accrued at the end of each period. The calculation formula of each period is as follows: interest of each period = principal x interest rate of the same period.
2. Compound interest refers to the interest-bearing system in which not only the principal is calculated, but also the unpaid interest in the previous period is incorporated into the current principal for rolling interest bearing. The calculation formula is as follows: total interest during the loan period = principal x( 1 interest rate) periods-principal = principal x[( 1 interest rate) periods-1]. Current loan interest = (accumulated unpaid interest on principal at the beginning of the current period) x interest rate for the same period.
According to international practice, the interest of long-term loans is generally calculated by compound interest method. In China's accounting practice, according to the agreement of both borrowers and lenders, simple interest method is often used to calculate interest.
(a), a one-time repayment of principal and interest
Long-term loans borrowed by enterprises from financial institutions or other units are generally calculated by the compound interest method year by year, and the principal and interest are repaid at maturity.
[Example] A joint-stock enterprise borrowed a five-year RMB long-term loan of 800,000 yuan from the bank at the beginning of 20x0, with an annual interest rate of 65,438+00%, with compound interest once a year and one-time repayment of principal and interest at maturity.
The interest expense accrued for the loan at the end of each year is as follows:
First year: 800,000 x10% = 80,000 yuan.
Second year: 880,000 x10% = 88,000 yuan.
The third year: 968,000 x10% = 96,800 yuan.
Fourth year:1064800x10% =106480 (yuan)
Fifth year:1171280x10% =117128 (yuan)
The total interest of the loan for five years is:
800000x [(110%) 5-1] = 488408 (yuan).
(2) Repaying the principal and interest by installments
In practice, some loan contracts stipulate that long-term loans will be repaid in installments, that is, after the enterprise obtains long-term loans, it will repay the loan principal and interest in installments. In this case, once the enterprise has repaid part of the principal and interest, it will only accrue the interest on the outstanding principal and interest in the future, and it is not necessary to accrue the interest on the repaid principal and interest. For example, case 1 agreed to pay half of the principal and interest at the end of the fourth year. In this case, the accrued interest expense at the end of the first four years remains unchanged, and other calculations are as follows:
Payment amount at the end of the fourth year = 800,000 x (110%) x4x50% = 585,640 (yuan).
Accrued interest expense in the fifth year = 585,640x (110%) = 644,204 (yuan).
(3) Pay interest by installments and repay the principal when due.
Sometimes, the loan contract stipulates that the interest will be calculated and paid at the end of each year during the loan period, and the principal will be returned in one lump sum at maturity. In this case, the interest expense paid each year is equal, namely:
Interest expense = principal x annual interest rate.
If other conditions remain unchanged and interest is paid at the end of each year, the interest paid at the end of each year is:
800,000 x10% = 80,000 yuan.
(4) Calculation of capitalization amount of loan interest
For the special loan obtained for the purchase and construction of fixed assets, on the premise of meeting the above capitalization conditions, the interest amount that should be capitalized can be calculated and included in the purchase and construction cost of fixed assets.
According to China's accounting standards for borrowing costs, the determination of the capitalized amount of interest should be linked to the expenditure incurred in purchasing and constructing fixed assets. In each accounting period that should be capitalized, the capitalized amount of interest generated by the purchase and construction of fixed assets should be the weighted average of the accumulated expenses of the purchase and construction of the fixed assets as of the end of the current period multiplied by the capitalization rate; If there is a discount or premium on the loan, the amount of the discount or premium that should be amortized in each period should also be used as the adjustment amount of interest, and the capitalization rate should be adjusted accordingly. The formula for calculating the capitalized amount of interest is: capitalized amount of interest in each accounting period = weighted average cumulative expenditure of fixed assets purchased and constructed by the end of the current period x capitalization rate.
Among them, the weighted average cumulative expenditure shall be calculated and determined by multiplying the expenditure amount of each asset by the ratio of the number of days occupied by each asset expenditure to the number of days covered by the accounting period. Its calculation formula is: weighted average of cumulative expenditure = ∑ (expenditure amount of assets x days occupied by expenditure of assets/days covered by accounting period).
The capitalization rate shall be determined according to the following principles according to different situations:
1. Only one special loan is borrowed for the purchase and construction of fixed assets, and the capitalization rate is the loan interest rate. If the special loan has a premium or discount, the capitalization rate of the loan in each period should be determined. When the premium or discount is amortized by the effective interest rate method, the effective interest rate included in the loan is the capitalization rate of each period; When the premium or discount is amortized by the straight-line method, it shall be calculated by dividing the actual interest of each period (nominal interest plus or minus the amortization amount of the discount) by the book value of the initial loan.
2. If more than one special loan is borrowed for the purchase and construction of fixed assets, the capitalization rate shall be the weighted average interest rate of these special loans. When there is no premium or discount on these loans, the formula for calculating the weighted average interest rate is: weighted average interest rate = sum of actual interest incurred in the current period of special loans/weighted days of special loan principal x 100%.
Among them, the weighted average of the principal of special loans refers to the weighted average of the principal balance of each special loan in the accounting period, and its calculation should be determined by multiplying the principal of each special loan by the ratio of the actual number of days occupied by the loan in the current period to the number of days covered in the accounting period. The calculation formula is: weighted average value of special loan principal = ∑ (principal of each special loan x days actually occupied by each special loan/days covered by accounting period).
If the special loan has a premium or discount, the actual interest of each period should also be determined separately, with the book value of the initial loan as the principal of the current loan.
Loan interest calculation formula
1. Monthly interest rate: interest calculated on a monthly basis. The calculation method is: monthly interest rate = annual interest rate ÷ 12 (month).
2. Daily interest rate: The daily interest rate is called the daily interest rate and is calculated on a daily basis. The calculation method is: daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days).
3. Annual interest rate: usually in the form of percentage of principal, interest is calculated annually. Calculation method: annual interest rate = interest ÷ principal ÷ time × 100%.
4. Annualized interest rate: refers to the interest rate at which the inherent rate of return of products is discounted to the whole year, which is quite different from the calculation method of annual interest rate. Assuming that the yield of a wealth management product is one year and the yield is B, the annualized interest rate R is calculated as R=( 1B)A- 1.
5. Calculation formula of equal principal and interest: [loan principal × monthly interest rate× (1interest rate) repayment months] ÷ repayment months [( 1 interest rate) repayment months-1]
6. Calculation formula of average fund: monthly repayment amount = (loan principal ÷ repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate.
Extended information:
Bank loan refers to an economic behavior in which banks lend funds to people in need at a certain interest rate according to national policies and agree to return them within a specified time limit. Generally, you need a guarantee, a house mortgage, or proof of income, and your personal credit information is good before you can apply.
Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan quotas, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans are mostly in the form of discounted bills, credit accounts and overdraft accounts.
According to different classification standards, there are different types of bank loans. For example:
1. According to different repayment periods, it can be divided into short-term loans, medium-term loans and long-term loans;
2. According to different repayment methods, it can be divided into demand loans, term loans and overdrafts;
3. According to the purpose or object of the loan, it can be divided into industrial and commercial loans, agricultural loans, consumer loans and securities broker loans.
4. According to the different loan guarantee conditions, it can be divided into bill discount loan, bill mortgage loan, commodity mortgage loan and credit loan.
5. According to the loan amount, it can be divided into wholesale loans and retail loans;
6. According to the different ways of interest rate agreement, it can be divided into fixed interest rate loans and floating interest rate loans, and so on.
Short-term loans refer to loans with a loan term of 1 year (inclusive). Short-term loans are generally used for the liquidity needs of the borrower's production and operation.
The currencies of short-term loans include RMB and major convertible currencies of other countries and regions. The term of short-term working capital loans is generally about half a year, and the longest is no more than one year; Short-term loans can only be extended once, and the extension period cannot exceed the original period.
The loan interest rate is determined according to the interest rate policy formulated by the People's Bank of China and the floating range of the loan interest rate, as well as the nature, currency, use, method, term and risk of the loan, among which the foreign exchange loan interest rate is divided into floating interest rate and fixed interest rate. The loan interest rate is indicated in the loan contract, which customers can check when applying for a loan. Overdue loans will be punished according to regulations.
The advantages of short-term loans are relatively low interest rates and relatively stable capital supply and repayment. The disadvantage is that it cannot meet the long-term capital needs of enterprises. At the same time, because short-term loans use fixed interest rates, the interests of enterprises may be affected by interest rate fluctuations.
What is the calculation formula of bank loan interest?
The interest calculation formula is mainly divided into the following two situations:
I. The interest rate conversion formula for RMB business is (note: general deposits and loans):
1. daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.
2. Monthly interest rate (‰) = annual interest rate (%)÷ 12
Second, banks can use product interest method and transaction interest method to calculate interest.
1. Accumulate the account balance daily according to the actual number of days, and multiply the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is:
Interest = cumulative interest-bearing product × daily interest rate, where cumulative interest-bearing product = total daily balance.
2. Transaction-by-transaction interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term, with three details:
If the interest-bearing period is a whole year (month), the interest-bearing formula is:
① Interest = principal × year (month )× year (month) interest rate
If the interest-bearing period is a whole year (month) and days, the interest-bearing formula is:
② Interest = principal × year (month) × year (month) interest rate principal × odd days × daily interest rate.
At the same time, banks can choose to convert all interest-bearing periods into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest-bearing formula is as follows:
③ Interest = principal × actual days × daily interest rate
These three formulas are essentially the same, but because the interest rate conversion is only 360 days a year, when calculating the actual daily interest rate, it will be calculated as 365 days a year, and the result will be slightly biased. Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.
Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds. Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower interest rate limits stipulated by the People's Bank of China. If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise it will decrease. There are three factors that determine loan interest: loan amount, loan term and loan interest rate.
Reference link: Baidu Encyclopedia _ Loan Interest
How to calculate the long-term loan interest?
1, the so-called long-term loans usually refer to those loans with a loan term of more than 5 years, such as housing loans. The calculation of long-term loan interest mainly depends on the repayment method chosen by the borrower, the approved loan amount and the loan interest rate.
2. The interest of long-term loans is generally complicated to calculate, and it is usually not calculated according to the formula of "interest = loan amount × loan interest rate × loan term" like short-term loans.
3. For example, housing loans generally adopt two repayment methods: equal principal and interest and average principal. The interest calculation formula of equal principal and interest is: interest = [loan principal × monthly interest rate ×( 1 interest rate )× repayment months ]=[( 1 interest rate )× repayment months]-loan principal; The interest calculation formula of this repayment method in the average capital is: interest = (repayment months 1)× loan principal× monthly interest rate ÷2.