P: loan principal
R: monthly interest rate
N: number of repayment periods
The following example illustrates the equal principal and interest repayment method.
Suppose the borrower obtains a personal housing loan of 200,000 yuan from the bank, with a loan term of 20 years and an annual interest rate of 4.2%, and pays the principal and interest on a monthly basis. According to the above formula, the sum of monthly principal and interest payable is 1233.5438+04 yuan.
Based on the above example, one month is one installment, the balance of the first installment loan is 200,000 yuan, the interest payable is 700 yuan (200,000× 4.2%/12), the principal is 533. 14 yuan, and the bank loan is still 19466.86 yuan; The interest payable in the second phase is (199466.86× 4.2%/12) yuan.
Extended data:
Early repayment
Early repayment refers to the behavior of the borrower to repay the loan before the repayment period. In some cases, prepayment is beneficial to the borrower and unfavorable to the lender, so whether prepayment is allowed and the conditions for prepayment should be clearly stipulated. Prepayment includes full prepayment, partial prepayment with unchanged loan term and partial prepayment with shortened loan term.
When choosing the loan term and repayment method, we should fully consider the operation of funds and the subsequent sources of funds. In the case of uncertain expectations, we suggest that the term should be set as long as possible, and the prepayment should be as little as possible (preferably lower than the determinable repayment amount), so as to increase flexibility and prevent bad credit records or financial difficulties caused by insufficient repayment funds.
At the same time, when the funds are abundant, you can choose to use these funds for investment (it is recommended to choose low-risk products, such as capital preservation wealth management products, government bonds, corporate bonds, etc.). ), and you can also choose to repay in advance (if the yield of low-risk investment is lower than the bank loan interest rate, you will generally choose to repay in advance). However, it is necessary to agree with the bank not to charge liquidated damages for early repayment (agreed in the loan contract).
In short, so choose the repayment method that suits you, and choose to repay in advance when the funds are abundant. If the expected income in the future decreases gradually and you want to save interest, then my suggestion is to choose the average capital repayment method. The total interest of this repayment method will be less than the total interest of the repayment method with equal principal and interest.
Because no matter whether the interest is lowered or raised, the interest paid is related to the loan principal and is not affected by other variables. It should be noted that the total amount of repayment is actually the same when the interest rate remains unchanged.
Because the interest generated by equal principal and interest is more than the interest generated by average capital, the interest repaid in the early stage accounts for a relatively large proportion, but the principal is not much. And the average capital, the early repayment of principal, late repayment of interest less. Therefore, the average capital is more suitable for early repayment than the equal principal and interest production.
Baidu Encyclopedia-Equal principal and interest