Because the interest rate conversion is only 360 days a year, the actual daily interest rate will be calculated as 365 days a year, and the result will be slightly different. 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.

(1) The interest rate conversion formula for RMB business is (note: common for 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

(two) banks can use the product interest method and the 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.

(3) Compound interest: Compound interest means adding interest at a certain interest rate. According to the regulations of the central bank, if the borrower fails to repay the interest at the time agreed in the contract, it will be charged with compound interest.

(4) Penalty interest: If the lender fails to repay the bank loan within the prescribed time limit, the penalty interest paid by the bank to the defaulter according to the contract signed with the parties is called bank penalty interest.

(V) loans overdue liquidated damages: penalties for the defaulting party with the same nature as penalty interest.

(six) the method of making and filing interest.

How to calculate the formula of commercial loan?

Loan interest = loan amount, loan interest rate, loan term = loan amount, days and days, daily interest rate = loan amount, monthly interest rate = loan amount, annual interest rate.

Loan days = actual Gregorian calendar days (such as 20 12 1 to 20 1 2 May 24th, which should be1actual February days, actual March days, actual April days and actual May 24th days).

Daily interest rate = annual interest rate /360

Monthly interest rate = annual interest rate/12

Note: The benchmark loan interest rates announced by the central bank are all annual interest rates.

Extended data

There are two calculation methods:

(1) Regular interest calculation

For loans with regular interest, the 20th of the last month of each quarter is the interest settlement date, and the interest period is from 2 1 day of last quarter to 20th of last quarter.

Calculation formula = interest-bearing products × (annual loan interest rate ÷360)

(2) Interest settlement one by one

Interest settlement by transaction means that the interest will be settled together with the principal.

Loan interest = loan amount × loan days × (annual loan interest rate ÷360)