Principal and interest is a financial term, which refers to the sum of principal and interest. In loan products, the principal and interest represent the sum of the principal and interest that the borrower needs to repay. The calculation method is principal and interest = principal+principal × interest rate× loan term. Principal refers to the initial amount of loans, savings or investments before interest is calculated, while interest is the currency other than the principal obtained from savings and loans, or the value-added amount generated when monetary funds are introduced and returned to the real economic unit.

Calculation method of principal and interest: principal+principal× annual interest rate× year. If the interest tax deducted is added, the formula is principal+principal × annual interest rate× time ×( 1- interest tax rate).

Example 1. How much is the principal and interest?

For example, Zhang Hua deposited 400 yuan money in the bank with a fixed term of five years and an annual interest rate of 6.66%. What is the due principal and interest of Zhang Hua?

400×6.66%×5+400=533.2 (yuan)

The borrower repays the loan principal and interest in equal amount every month, in which the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled on a monthly basis. Because the monthly repayment amount is equal, in the initial monthly repayment of the loan, after excluding the monthly settlement interest, the loan principal is less; In the monthly repayment at the end of the loan, after deducting the interest settled on a monthly basis, the principal of the loan is more.

The principal and interest have been paid off, which means that the borrower has paid off the arrears and interest, which means that all loan lines have been settled. After the user applies for the loan line, whether the user uses deferred repayment, installment repayment or early repayment, as long as the interest and principal are paid off, it is considered that the principal and interest have been paid off.