Matching principal and interest and average capital are two different loan repayment methods, which are different in fixed repayment amount, applicable object, repayment method and calculation formula. Average capital: the principal remains unchanged, the interest decreases month by month, and the monthly repayment amount decreases; Equal principal and interest: the principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged.

Matching principal and interest refers to repaying the same amount of loans (including principal and interest) every month during the repayment period. Equal principal and interest and average capital are not the same concept. Although the monthly repayment amount may be lower than that in average capital at the beginning, the interest paid in the end will be higher than that in average capital, which is also a method often used by banks.

Average capital divides the total loan into equal parts during the repayment period, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. In this way, because the monthly repayment amount is fixed and the interest is getting less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.

Matching principal and interest and average capital are two different loan repayment methods, and their differences are as follows:

1, with different repayment amounts:

Equal principal repayment: the principal repaid every month is fixed, plus the interest that should be repaid.

Matching principal and interest repayment: the monthly repayment amount is fixed, which already includes the interest and principal payable each month.

2, suitable for different objects:

Average capital: it is suitable for repaying loans in advance in a planned way.

Matching principal and interest: suitable for repayment according to actual conditions.