No, it is equal principal and interest. When the loan interest rate remains unchanged, the total monthly repayment amount of equal principal and interest remains unchanged. The principal part increases month by month and the interest part decreases month by month.

Equal principal and interest refers to a loan repayment method, which refers to repaying the same amount of loan (including principal and interest) every month during the repayment period.

Equal installments of principal and interest and equal installments of principal are different concepts. Although the monthly repayment amount may be lower than the amount of equal installments of principal repayment at the beginning, the interest paid in the end will be higher. This method is often used by banks for equal principal repayment.

That is, the total principal amount and the total interest amount of the mortgage loan are added, and then evenly distributed to each month of the repayment period. The monthly repayment amount is fixed, but the monthly repayment amount is fixed. The proportion of principal in the amount increases month by month, and the proportion of interest decreases month by month. This method is the most common and has long been recommended by most banks.

The equal principal and interest repayment method means that the borrower repays the loan principal and interest in equal amounts every month, in which the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month.

The equal principal repayment method means that the borrower repays the loan principal in an equal amount (loan amount/number of loan months) every month. The monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month. The total of the two is the monthly repayment amount.

Equal principal amount refers to a loan repayment method, which is to divide the total amount of the loan into equal parts during the repayment period, and repay the same amount of principal and the remaining loan amount in that month. Since the monthly principal repayment amount is fixed and the interest is getting less and less, the borrower has greater repayment pressure at first, but as time goes by, the monthly repayment amount becomes less and less.

An equal amount of principal and interest is to repay the same amount of loan (including principal and interest) every month during the repayment period.

Monthly repayment amount = [Loan principal×monthly interest rate×(1+monthly interest rate)^number of repayment months]÷[(1+monthly interest rate)^number of repayment months-1]< /p>

Features of the equal principal and interest repayment method: The principal of the equal principal and interest repayment method increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged; compared with the equal principal repayment method, the disadvantage is that the interest expense is relatively small The interest in the early stage of repayment accounts for the majority of the monthly payment, and as the principal is gradually returned, the proportion of the principal in the payment increases. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way, and also facilitates each family to determine the loan repayment ability based on their own income.

Features of the equal-amount principal repayment method: The principal of the equal-amount principal repayment method remains the same, the interest decreases month by month, and the monthly repayment amount decreases; because the monthly repayment principal amount is fixed, and the interest increases The borrower is under greater pressure to repay at first, but as time goes by, the monthly repayments become smaller and smaller.

Compared with the two, when the loan term, amount and interest rate are the same, in the early stage of repayment, the monthly repayment amount of the equal principal repayment method is greater than the equal principal and interest, but in the later period, the monthly repayment amount is greater than the equal principal and interest payment method. The amount returned must be less than the equal amount of principal and interest. That is, calculated based on the entire repayment period, the equal principal repayment method will save loan interest expenses.

Generally speaking, the equal principal repayment method is suitable for borrowers who have a certain financial foundation, can bear the heavy repayment pressure in the early stage, and have early repayment plans. The equal principal and interest repayment method facilitates the arrangement of income and expenses because the same amount is repaid every month. It is suitable for borrowers whose economic conditions do not allow excessive investment in early repayment and whose income is relatively stable.

Comparing the two repayment methods, in the final settlement, equal principal and interest will cost more than equal principal.

The difference between early repayment:

If you repay early, the equal principal and interest method will basically repay interest in the early stage, but not much principal, so early repayment will Very disadvantaged.

If you repay in advance under the equal principal method, since the proportion of principal repaid in the early stage is larger, you can avoid later interest by repaying in advance.