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How to calculate the loan interest? Which should I choose, average capital and equal principal and interest?
Speaking of loans, some friends are very concerned about how to calculate the loan interest. Usually people just think that the repayment is due and the rest can be handed over to the bank. But there are still many friends who want to know how their loans are calculated. Loan calculation involves two ways: average capital and equal principal and interest.

How to calculate loan interest:

Calculation formula of average capital: monthly interest payable = residual principal × monthly interest rate = (loan principal-accumulated repaid principal amount) × monthly interest rate; Total interest = [(total loan ÷ repayment months+total loan × monthly interest rate)+total loan ÷ repayment months ×( 1+ monthly interest rate) ]> 2× repayment months-total loan.

The calculation formula of equal principal and interest: monthly interest payable = loan principal × monthly interest rate ×[( 1+ monthly interest rate) repayment months -( 1+ monthly interest rate) (repayment month serial number-1)]⊙[( 1+ monthly interest rate) repayment. Total interest = repayment months × monthly repayment amount-loan principal.

How to choose equal principal and interest and average capital?

How to choose average capital and equal principal and interest? The average capital is more suitable for lenders with strong repayment ability some time ago, because the repayment amount in the early stage is relatively large, and then decreases month by month. The monthly repayment amount of equal principal and interest is the same, so it is more suitable for families with normal consumption plans, especially some young people now. So each of them has his own suitable crowd, and you can choose which one you belong to!

Nowadays, more and more people borrow money, and people gradually know a lot about loans, such as: how to calculate the loan interest? How to choose average capital and equal principal and interest, and so on. I believe that after understanding these loan knowledge, the loan process will be smoother in the future!