Period: 60 months: 2 1 18.73. (The calculation method is more difficult, see below).
There are two main loan formulas, namely, the calculation formula of equal principal and interest loan and the calculation formula of average capital loan. The calculation method is more difficult.
The biggest difference between the two formulas lies in the different ways of calculating interest. The former uses compound interest method to calculate interest (that is, both principal and interest generate interest), while the latter uses simple method to calculate interest (that is, only principal generates interest). In this way, under the same conditions of other loans, loans with equal principal and interest are obviously much more interesting than loans in average capital. In addition, the repayment amount of each installment calculated by matching principal and interest loans is equal; However, the repayment amount of each installment calculated by the average capital loan is different. From the early stage to the late stage of repayment, the amount gradually decreases.
Calculation formula of matching principal and interest loan:
Monthly repayment amount (monthly principal and interest) = loan principal x monthly interest rate x[( 1+ monthly interest rate) repayment months] /([( 1+ monthly interest rate) repayment months ]- 1).
Calculation formula of average capital loan: monthly repayment amount (referred to as monthly principal and interest) = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) x monthly interest rate. Later, the amount gradually decreased.
Matching principal and interest loan: calculated by compound interest. At the settlement time of each repayment, the interest generated by the remaining principal will be calculated together with the remaining principal (loan balance), that is to say, the outstanding interest will also be calculated, which seems to be more severe than "rolling interest". In foreign countries, it is recognized as a loan method suitable for the interests of lenders.
Average capital loan: interest is calculated by simple interest rate method. At the settlement time of each repayment, only the remaining principal (loan balance) is calculated, that is to say, the outstanding loan interest is not calculated together with the outstanding loan balance, only the principal is calculated.
Therefore, under the traditional repayment method, the longer the loan cycle, the more interest the loan with equal principal and interest will generate than the loan with average capital. Therefore, if the borrower cannot adjust (or choose) the repayment method, the borrower with longer loan term should choose the average capital loan.
The difference between two kinds of loans.
Although leveling capital loan can save a lot of interest, the "disadvantage" of leveling capital loan is that the repayment amount in each period is different, the repayment amount in the early stage is heavier and the repayment amount in the later stage is lighter. This requires the borrower's repayment ability to adapt to this situation. The loan with equal principal and interest does not have this "shortcoming", and its repayment amount is the same in each period. Borrowers can easily make loan plans according to their repayment ability. However, it should be noted that although the average repayment amount of capital loans is different, the average repayment amount of each loan is much lower than that of loans with equal principal and interest.
Matching principal and interest loan repayment table (part): the repayment amount of each installment is the same.
Average capital loan repayment table (partial): the repayment amount of each installment is different.