The calculation formula is monthly repayment amount = [loan principal × monthly interest rate ×( 1+ monthly interest rate) × repayment months ]=[( 1+ monthly interest rate) × repayment months]. Add up the total principal and interest of the mortgage loan and distribute it evenly to each month of the repayment period. As a repayment, he pays a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month.

2. Equal principal repayment:

The calculation formula is quarterly repayment amount = loan principal ÷ number of quarters of loan term+(principal-accumulated repayment amount of principal) × quarterly interest rate. Divide the principal into months and pay off the interest from the previous trading day to the repayment date. Compared with the matching principal and interest, the total interest cost of this repayment method is lower, but the principal and interest paid in the early stage are more, and the repayment burden is reduced month by month.

The difference between equal principal and interest and average capital.

1, the monthly repayment amount is different:

The monthly repayment of average capital is decreasing. According to the average capital repayment, the repayment amount of the same principal every month is fixed, while the interest payment amount will decrease with the passage of months. Matching principal and interest means paying the same amount every month, and interest accounts for a large proportion of the amount repaid in advance.

2. The interests generated are different:

The total interest of average capital repayment method is less than that of matching principal and interest repayment method, so the average capital is more cost-effective than matching principal and interest repayment method. For example, the loan is 500,000 yuan, the loan term is 1 year, and the annual interest rate of the loan is 4.35%. The total interest of equal principal repayment is 2356.25 yuan, and the total interest of equal principal repayment is 237 1.88 yuan.

3. Different suitable people:

The average capital is suitable for people with higher income in the early stage and lower income in the later stage. Matching principal and interest is suitable for people with a fixed monthly income.

4. Advantages and disadvantages are different:

The advantage of average capital is that it can save more interest and is conducive to early repayment. The disadvantage lies in the pressure of prepayment. The advantage of matching principal and interest is that the monthly repayment pressure is less, and the disadvantage is that more interest needs to be paid, which is not conducive to early repayment.