Average capital and matching principal and interest are common repayment methods in loans. Different repayable principal and interest will be calculated under the two methods, and the final total repayment interest is also different. The total interest of loans with equal principal and interest is higher than the average capital. So, what exactly are average capital and equal principal and interest? We will explain it to you through specific examples.

1. What is average capital and equal principal and interest?

1, average capital

That is, the monthly repayment of principal is the same, and the monthly repayment amount and interest are getting less and less.

Monthly repayment principal = loan principal/loan months;

Monthly interest = (loan principal-accumulated repayment principal) * monthly interest rate.

2. Equal principal and interest

That is, the monthly repayment amount is fixed, the repayment principal is increasing and the interest is decreasing.

Monthly repayment amount = [loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]=[( 1+ monthly interest rate) repayment months-1],

If the number of repayment months is 3, "3" is equal to a certain number of 12 power.

Second, for example.

Suppose the loan is 9000 yuan and the monthly interest is 3 months, then:

1, average capital

The monthly repayment of principal =9000/3=3000 yuan,

The interest of 1 month =(9000-0)* yuan, and the monthly repayment amount =3000+36=3036 yuan;

The interest of the second month =(9000-3000)* yuan, and the monthly repayment amount =3000+24=3024 yuan;

The interest of the third month =(9000-6000)* yuan, and the monthly repayment amount =3000+ 12=30 12 yuan;

Total interest =72 yuan, total principal and interest =9072 yuan.

The repayment amount and interest are the highest in the first month, and then decrease month by month, which is suitable for people with strong repayment ability in the early stage.

2. Equal principal and interest

Monthly repayment amount = yuan,

The first 1 month interest =36 yuan, repayment principal = yuan;

Interest in the second month = yuan, repayment principal = yuan;

The interest of the third month = yuan, and the repayment principal = yuan;

Total interest = yuan, total principal and interest = yuan.

The interest in the first month is the highest, and the interest decreases month by month. The principal repayment in the first month is the least, and then it increases month by month, which is suitable for people with fixed monthly income.

Note: The larger the loan amount, the longer the loan time, and the greater the interest difference between the average capital and the equal principal and interest repayment. If the loan is 200,000 yuan for 20 years, the interest difference between them is 1 10,000 to 20,000 yuan.

The above is about "what is average capital and equal principal and interest", I hope it can help you.