Average capital refers to a repayment method in which the total loan amount is divided into equal parts during the repayment period, and the same amount of principal and interest generated by the remaining loans in the current month are repaid every month. Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but with the passage of time, the monthly repayment amount is getting less and less.

It is also convenient to determine the repayment ability according to your own income.

The total expenditure of this repayment mode may be reduced relative to the matching principal and interest, but the repayment pressure is greater at first.

If it is used for mortgage, this method is more suitable for people who are at the peak of work or are about to retire.

Calculation formula of average capital loan:

Monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.

Microfinance and low interest rates:

For example, the loan is 6.5438+0.2 million yuan, with an annual interest rate of 4.86% and a repayment period of 654.38+00 years.

Matching principal and interest:1repayment after 0 years 15 1750.84 yuan, with total interest of 3 1750.84 yuan.

Average capital:1repayment after 0 years 149403.00 yuan, with total interest of 29403.00 yuan.

The difference between the two: 2347.84 yuan/10 year, only 235 yuan a year.

For example, the loan is 6.5438+0.2 million yuan, with an annual interest rate of 4.86% and a repayment period of 20 years.

Matching principal and interest: repayment after 20 years 187846.98 yuan, with total interest of 67846.98 yuan.

Average capital: repayment after 20 years178,563.00 yuan, with total interest of 58,563.00 yuan.

The difference between the two: 9283.98 yuan /20 years, only 465 yuan a year.

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Comparison between average capital and equal principal and interest repayment method

Matching principal and interest means paying the same amount of loans (including principal and interest) every month during the repayment period.

Monthly repayment amount = [loan principal × monthly interest rate ×( 1+ monthly interest rate )× repayment months ]≤[( 1+ monthly interest rate )× repayment months]

Characteristics of the equal principal and interest repayment method: Compared with the average capital repayment method, the disadvantage is that interest is more. In the initial repayment period, interest accounts for most of the monthly contributions. With the gradual repayment of the principal, the proportion of the principal in the contributions increases. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.

Characteristics of repayment mode of average capital: Due to the fixed monthly repayment amount of principal and less and less interest, the lender is under great repayment pressure at first, but with the passage of time, the monthly repayment amount is less and less.