First, the meaning of the loan annualized interest rate
The annualized loan interest rate refers to the conversion of the current actual loan interest rate into the annual interest rate, which is different from the annual interest rate of the loan. Once the annual interest rate is given, it is a fixed value, and the annualized interest rate will change with the current real interest rate.
Many lending institutions pay interest on a daily basis, so only the daily interest rate is given. We might as well understand it through the following examples:
Assuming that the daily interest rate is 365 days a year, then the annual interest rate = If the actual daily interest rate remains unchanged for one year, then the annualized interest rate is equal to the annual interest rate;
If the real daily interest rate changes, for example, in a few months, the annualized interest rate will be greater than the annual interest rate.
Second, how to calculate the annualized interest rate of loans?
1, calculation formula
Generally speaking, the annualized loan interest rate refers to the annual loan interest rate.
Annualized loan interest rate = monthly interest rate × 12 months = daily interest rate ×365 days (365 days a year);
You can also use the actual loan interest to calculate the annualized loan interest rate, which is only applicable to the one-time repayment of the principal.
Annualized loan interest rate = annual interest/loan principal * 100%.
2. Calculation of specific examples
Assuming that the monthly interest rate = month = assuming that the loan is 1 0,000 and the annual loan interest rate is 430, then the annualized loan interest rate = 430/10,000 *100% = The above is about "how to calculate the annualized loan interest rate". I hope it can help you understand.