How to calculate the monthly interest of the loan?
There are two repayment methods, equal principal and interest and average capital. Matching principal and interest means that the amount repaid in each repayment period is the same. In the average capital, the principal of each repayment period is the same, but the interest is different.
Calculation formula of equal principal and interest method:
Monthly repayment amount = principal * monthly interest rate *[( 1+ monthly interest rate) n/[( 1+ monthly interest rate) n- 1]
Where n represents the number of months of loan, and n represents the power of n, such as 240, representing the power of 240 (20 years and 240 months of loan).
Monthly interest rate = annual interest rate/12
Total interest = monthly repayment amount * loan months-principal
Calculation formula of average capital method:
Monthly repayment amount = principal /n+ remaining principal * monthly interest rate
Total interest = principal * monthly interest rate * (loan months /2+0.5) Extended information:
Monthly interest. The monthly interest rate is expressed as a few thousandths of the principal.
7.05%/ 12=5.875‰
The monthly interest announced by the bank is basically expressed after one year. For example, the annualized deposit interest rate for three months is 2.6% (the bank is listed), but the actual rate of return for the current period is only 0.65%, the annual interest rate is generally% (percentage), and the monthly interest rate is generally expressed as ‰ (one thousandth); The daily interest rate is expressed as a few tenths of the principal, which is usually called a few cents. If the daily interest rate is 1%, that is, the principal is 1 yuan, and the daily interest rate is 0.005438+0 yuan. (1% =0.00 1 yuan, 10 cents =0.000 1 yuan)
Calculation formula: daily interest rate _ annual interest rate ÷360= monthly interest rate ÷30
References:
Baidu Encyclopedia _ Monthly Interest Rate