The interest calculation formula is mainly divided into the following two situations:

I. The interest rate conversion formula for RMB business is (note: general deposits and loans):

1. daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.

2. Monthly interest rate (‰) = annual interest rate (%)÷ 12

Second, banks can use product interest method and transaction interest method to calculate interest.

1. Accumulate the account balance daily according to the actual number of days, and multiply the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is:

Interest = cumulative interest-bearing product × daily interest rate, where cumulative interest-bearing product = total daily balance.

2. Transaction-by-transaction interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term, with three details:

If the interest-bearing period is a whole year (month), the interest-bearing formula is:

① Interest = principal × year (month )× year (month) interest rate

If the interest-bearing period is a whole year (month) and days, the interest-bearing formula is:

② Interest = principal × year (month) × year (month) interest rate principal × odd days × daily interest rate.

At the same time, banks can choose to convert all interest-bearing periods into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest-bearing formula is as follows:

③ Interest = principal × actual days × daily interest rate

These three formulas are essentially the same, but because the interest rate conversion is only 360 days a year, when calculating the actual daily interest rate, it will be calculated as 365 days a year, and the result will be slightly biased. Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.

Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds. Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower interest rate limits stipulated by the People's Bank of China. If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise it will decrease. There are three factors that determine loan interest: loan amount, loan term and loan interest rate.

Reference link: Baidu Encyclopedia _ Loan Interest

Calculation formula of loan interest rate

The calculation formula of loan interest is loan interest = principal x time x interest rate.

Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds.

Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower interest rate limits stipulated by the People's Bank of China.

If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise it will decrease.

There are three factors that determine loan interest: loan amount, loan term and loan interest rate.

What are the interest formulas for bank loans?

The calculation formula of bank loan interest rate is as follows: monthly interest rate: that is, monthly interest, and its calculation method is: monthly interest rate = annual interest rate12 (month). Daily interest rate: the daily interest rate is called the daily interest rate, and its calculation method is: daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days), and annual interest rate is: annual interest rate = interest ÷ principal ÷ time × 100%.

Extended data:

Loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally agree on interest and repayment date. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

Review the legal status of the borrower, including its legal establishment and continuous and effective existence. If it is an enterprise, it shall examine whether the borrower is legally established and whether it has the qualifications and qualifications to engage in related businesses, and check the business license and qualification certificate. Pay attention to whether the relevant certificates have passed the annual inspection or related verification.

Regarding the credit status of the borrower, check whether the registered capital of the borrower is consistent with the loan; Examine whether there is a clear situation in registered capital flight; Past loans and repayments; And whether the borrower's product quality, environmental protection, tax payment and other illegal conditions may affect the repayment.

In order to reduce the moral hazard of the lender, the borrower and its responsible person should also be specially examined. When issuing loans, financial institutions should not only examine the qualifications, conditions and operating conditions of borrowers, but also strengthen the examination and control of the personal qualities of investors, legal representatives of enterprises and key management personnel.

The loan interest rate is the interest rate charged by banks and other financial institutions to borrowers when they issue loans. It is mainly divided into three categories: the loan interest rate of the central bank to commercial banks; The loan interest rate of commercial banks to customers; Interbank lending rate

The decisive factors of bank loan interest are: bank cost. Any economic activity needs cost-benefit comparison. There are two types of bank costs: borrowing costs-prepaid interest on borrowed funds; Additional cost-the cost of normal business. Average profit rate. Interest is the subdivision of profit, which must be less than the profit rate, and the average profit rate is the highest limit of interest. Supply and demand of loan funds.

How to calculate the interest of bank loans

1. Monthly interest rate: interest calculated on a monthly basis. The calculation method is: monthly interest rate = annual interest rate ÷ 12 (month).

2. Daily interest rate: The daily interest rate is called the daily interest rate and is calculated on a daily basis. The calculation method is: daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days).

3. Annual interest rate: usually in the form of percentage of principal, interest is calculated annually. Calculation method: annual interest rate = interest ÷ principal ÷ time × 100%.

4. Annualized interest rate: refers to the interest rate at which the inherent rate of return of products is discounted to the whole year, which is quite different from the calculation method of annual interest rate. Assuming that the yield of a wealth management product is one year and the yield is B, the annualized interest rate R is calculated as R=( 1B)A- 1.

5. Calculation formula of equal principal and interest: [loan principal × monthly interest rate× (1interest rate) repayment months] ÷ repayment months [( 1 interest rate) repayment months-1]

6. Calculation formula of average fund: monthly repayment amount = (loan principal ÷ repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate.

Extended information:

Bank loan refers to an economic behavior in which banks lend funds to people in need at a certain interest rate according to national policies and agree to return them within a specified time limit. Generally, you need a guarantee, a house mortgage, or proof of income, and your personal credit information is good before you can apply.

Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan quotas, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans are mostly in the form of discounted bills, credit accounts and overdraft accounts.

What are the formulas for calculating the interest rate of bank loans?

Interest rate = interest/principal/time × 100%

For example: deposit 100 yuan,

The bank promised to pay an annual interest rate of 4.2%

Then the bank will pay 4.2 yuan interest in the second year.

The calculation formula is 100×4.2%=4.2 yuan.

The formula is: interest rate = interest ÷ principal ÷ time × 100%.

Interest = principal × interest rate× time

= 100×4.2%=4.2 yuan.

The final withdrawal 104.2= 104.2 yuan.

Extended data

Matters needing attention

1. When applying for a loan, the borrower makes a correct judgment on his repayment ability. Design a repayment plan according to your income level, leaving room for it and not affecting your normal life.

2. Choose the appropriate repayment method. There are two repayment methods: equal repayment and equal principal repayment. Once the repayment method is agreed in the contract, it shall not be changed during the whole loan period.

3. Repay on time every month to avoid penalty interest. From the month following the initiation of the loan, the lending time of the next month is usually the repayment date. Don't default on the penalty interest because of your negligence, so that the bank can't approve the loan application again.

4. Take care of your contract and receipt, read the terms of the contract carefully, and know your rights and obligations.

Calculation formula of bank loan interest rate

The calculation formula of bank interest rate is: annual interest rate = monthly interest rate × 12 (month) = daily interest rate ×360 (day).

There are two methods to calculate interest rate: simple interest and compound interest. Simple interest method refers to a method of calculating interest only by principal. Interest = principal interest rate, number of interest-bearing periods.

The calculation method of compound interest refers to the method of calculating interest together with the interest of the previous period, commonly known as "rolling interest". Compound interest final value = principal (1 interest rate).

The final value of compound interest is the sum of principal and interest after several periods according to a certain principal. The characteristic is that when calculating the interest of the second and subsequent periods, the sum of the principal and interest of the previous period should be used as the number of periods for calculating interest.