I have been investing in online lending for more than 2 years, and I have done some research on lending. Many long-term investment friends don't know much about matching principal and interest, average capital, interest before capital, and matching interest. They don't know the specific algorithm, and they don't know which loan investment is more suitable for them. This article gives a detailed example to illustrate, hoping to help everyone.
When we buy a house loan, we choose the repayment method of equal principal and interest. The service life is the same, but the interest expense will be much higher. If you invest in P2P with equal principal and interest, the funds are scattered and the income cannot be maximized. Therefore, many people think that they have suffered a big loss by choosing the repayment method of equal principal and interest. Is it?
First of all: equal principal and interest or equal principal repayment. The calculation method of interest is to multiply the principal balance borrowed from the bank by the corresponding monthly interest rate (agreed annualized interest rate/12 months) to calculate the interest that you should repay to the bank in that month. In other words, the interest rates of the two different repayment methods are actually the same. The reason why the calculated interest is different is because the principal you borrowed is different in different months. The more principal you borrow, the more interest you have to pay back; If you borrow less principal, you will have to pay less interest.
Example: If the loan is 500,000 yuan+paid off in 00 years, the annual interest rate is 7% and the monthly interest rate is 0.5833%.
1. Assuming the average capital, the monthly repayment principal is: 500,000/120 months, that is, 4 167 yuan per month;
( 1)? The repayment interest in the first month is: 500,000 *0.5833%=29 16.5 yuan, so the actual repayment amount in the first month is 4167+2916.5 = 7083.5 yuan.
(2)? The remaining principal in the second month is 500,000-465,438+067 = 495,833 yuan, so the interest to be repaid in the second month is:
495833*0.5833%=2892.2 yuan, then the actual repayment amount in the second month is 4 167+2892.2=7059.2 yuan.
etc
The average capital is about 676,500 yuan in 10, and the interest is * * *176,500 yuan.
2.？ If the principal and interest are equal, the loan is 500,000 yuan, paid off in 10 year, with an annual interest rate of 7% and a monthly interest rate of 0.5833%, then the monthly repayment amount (including principal and interest) is 5805.4 yuan.
( 1)? The interest calculated in the first month is also 29 16.5 yuan, and only the principal of 5805.4-29 16.5=2888.9 yuan is paid in the first month;
(2)? The interest in the second month is calculated on the basis of the principal balance of last month, that is, 500,000-2,888.9 = 49,765,438+065,438+0 yuan, so the interest payable in the second month is 49,765,438+065,438+0 * 0.5833% = 2899.
etc
For the same principal and interest, the repayment is about 696,700 yuan at 10 * *, and the interest at * *196,700 yuan.
Therefore, it can be concluded that the two different repayment methods are fair. There is no question of which is more cost-effective. The average capital is compared with the matching principal and interest, because the repayment amount of the previous month is greater than the matching principal and interest.
3.？ The above is the loan from the Housing Bank. In the case of P2P, small loan companies, banks and other commercial loans, such as Ping An Easy Loan, CreditEase, and bank small loans, there is only one calculation method, that is, equal interest, but the signed contract and name are still equal principal and interest. Let me give you an example:
Or borrow 50W (the actual micro-loan will not have such a high amount, so it is convenient for example), and the annual interest rate of one year cycle is 1.5%, which is18%; The principal and interest of monthly repayment are the same, so the monthly repayment principal is 50w/65438+February =4 1667 yuan? The repayment interest is 50w *1.5% = 7,500 yuan, and the monthly repayment principal and interest is 41667+7,500 = 49167 yuan.
After one year, the total repayment amount is 59W, and * * * pays interest of 9W yuan. If it is 10 year, only the interest is 90W. Far higher than the equal principal and interest and average capital,
Many friends see that the interest on contracts signed on P2P is less than 24%, and the interest paid to investors is more than 24%. So how is the platform profitable? That's the reason. In fact, the interest margin is equal, so the platform has room for survival. Therefore, the general commercial borrowing time is very short, up to 3 years, and the amount is very small, generally within 15W. Otherwise, if it is large-scale and long-term,
4. Interest first, then capital, which is easy to understand, is the same as 50W, monthly interest 1.5%, annual interest 18%, and the cycle is 6 months.
Then the monthly repayment interest is also 7500, and the one-time repayment in the sixth month is 50.75W, and A * * * repays 54.5W, and * * * pays interest of 4.5w..
Interest before interest is generally within 6 months, because the principal and interest are repaid in the last installment. If a few years is too long and the variables are too big to track and control the risks in time, and the borrower's last repayment pressure is too great, it will greatly increase the probability of overdue bad debts. Once a large amount of orders are overdue at the same time, the platform's ability to resist risks is poor. Investors will also stop investing. If all current users withdraw cash from the bank in a few days, the bank will also have financial difficulties, which is called a run.
To sum up: In terms of housing bank loans, if you are not too nervous in the early stage, you can choose the average capital method to reduce all interest expenses; If the funds are tight in the early stage, you can choose the way of matching principal and interest, so that although there are many interest expenses in the early stage, the financial pressure will be small. In the case of available funds, appropriate prepayment can also achieve the effect of reducing interest expenses.
In the case of bank commercial credit and private loans, if there is a stable monthly payment, we will consider long-term equal interest. If the repayment is concentrated in a certain period of time, you can consider the short-term interest first and then the principal.
As an investor in P2P, if the platform has the first interest for more than six months, whether the borrower's repayment source is centralized, whether there is collateral, and whether it has repayment ability, we should be cautious. So how do we choose to invest?
If your funds are stable and considerable, you can have a good understanding of the platform boss and operation for a long time, and the risks are controllable. It is recommended to choose interest first and then March-June to prevent interest rate cuts later and lock in the income in advance; In addition, the funds will not be dispersed, and there is no need to worry about bidding every month.
If you don't know the platform very well, and you are worried that you won't continue to invest in the later period, or the funds are not stable, and you will borrow money during the break, or even use XYK, then it is recommended to invest 1 month with equal principal and interest. 1 month, if problems are found, they can be cleared quickly, which is convenient for XYK to turn around, and the principal and interest are repaid in equal amount every month, which is similar to XYK installment, so as to relieve the repayment pressure and avoid problems and heavy losses.
I am in Wuhan and have 2000 online loan exchange groups. Group number: 140906236? Focus on the platforms in Hubei, especially Wuhan, including Hubei investors and investors with diversified investments in Hubei platforms. Welcome all online loan friends to join the group for study and discussion.