The calculation formula of prepayment interest is:

Remaining loan principal × [(prepayment date-days of final deduction date) ]× daily interest rate (daily interest rate = annual interest rate /360).

The number of days is calculated by counting the heads without counting the tails or counting the tails without counting the heads.

If the loan is repaid in advance, the interest will be deducted first and the rest will be used as the principal.

Assume that the remaining principal is 200,000 yuan, the loan term is 10 year, the annual interest rate is 4.5%, the last deduction date is February 20 1 15, the prepayment date is February 20 1 18, and this repayment is 18.

Then the interest paid in advance is: 200,000× 3× 4.5%/360 = 75, the reduced principal is 654.38+million-75 = 99,925, and the remaining principal is 200,000-99,925 = 654.38+million,075. Partial repayment in advance can save a lot of interest expenses, reduce the principal balance and shorten the number of repayment periods.

The repayment amount for one-off settlement in advance is: remaining principal+interest. The calculation method of interest is the same as above. Still taking the above example as an example, the repayment amount of one-time settlement in advance is: 200000+75 = 200075.

How to calculate the advance interest of bank loans?

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With the rise of housing prices, more and more people choose to borrow money from banks to buy houses to ease the economic pressure. However, some families with better economic conditions will want to pay off the loan in advance after they have more money, thus saving the trouble of repaying the loan every month. So, how to calculate the interest of bank loans in advance? What should I pay attention to when repaying the loan in advance? Let's have a brief look with Bian Xiao.

First, how to calculate the interest of bank loans in advance?

Interest on prepayment = remaining principal * daily interest rate * remaining repayment days. Because the loan contract has a clear loan amount, loan term and loan method, the borrower wants to repay in advance, which is a breach of contract and needs to pay the corresponding liquidated damages to the bank according to the contract.

Second, what should I pay attention to when repaying the loan in advance?

1. Pay attention to the time of prepayment: if you apply for provident fund loan, the borrower must repay the loan for more than one year as agreed in the contract before applying for prepayment, and the remaining time must be more than 6 months when applying for prepayment.

2. Pay attention to whether it is cost-effective to repay the loan in advance: you must be cautious in repaying the loan in advance, first understand the amount of prepayment, because it involves breach of contract, so you should also understand the cost of liquidated damages. If the cost is high, it will be more cost-effective to invest with this money.

3. Pay attention to surrender: At present, many large loans require the borrower to purchase insurance to reduce the loan risk. If the borrower has purchased insurance when applying for a loan, don't forget to surrender the insurance after repaying the loan in advance and get the insurance premium paid in advance back.

4. Pay attention to loan methods: At present, there are two common loan methods, one is average capital, that is, the monthly interest and principal are the same, and the other is equal principal and interest, which are decreasing month by month, so it is not suitable to repay the loan in advance if it is equal principal and interest.

Editor's summary: How to calculate the interest on prepayment of bank loans and what to pay attention to, that's all. I hope it helps you. If you want to know more, please follow Qijia. com。

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How to calculate the interest on prepayment?

Calculate how much it will cost to decorate your home.

Now that house prices are getting higher and higher, people generally need to borrow money from banks to buy houses. With the improvement of people's economy, people will want to pay off the loan in advance, so how to repay the loan is more cost-effective, and how to calculate the interest of repaying the loan in advance? Let's take a look at Bian Xiao!

1. How to calculate the interest on prepayment?

Usually, the prepayment of the lender needs to be calculated according to the percentage of the amount. Taking ICBC as an example, the provisions for prepayment are as follows:

1. 1 year for prepayment, the bank will charge 3% of the prepayment amount as penalty.

2. In case of prepayment within1-2 years, the bank will charge a penalty of 2% of the prepayment amount.

For prepayment within 3.2-3 years, the bank will charge a penalty of 1% of the prepayment amount.

Second, will the interest on prepayment be reduced?

Theoretically speaking, prepayment will reduce interest expenses, but it mainly depends on the agreement on prepayment in the contract signed at the time of loan. Generally, it will be reduced more or less, depending on the type of loan; There are usually two types of advance payment, as follows:

1. Full advance payment

Full repayment refers to one-time settlement of mortgage principal and interest. After all the loans are repaid in advance, interest will be paid until the day when the principal and interest of the bank are paid off. In other words, the original loan needs to pay interest every month. If you pay off the principal and interest in advance, you don't have to pay interest later.

2. Partial advance payment

If only part of the loan is repaid in advance and the remaining principal and interest have not been settled, the remaining outstanding loan principal and interest shall be implemented according to the loan interest rate agreed in the original loan contract.

Bian Xiao concluded: The above is how to calculate the prepayment interest, and whether the prepayment interest will be reduced. I hope the above sharing can help you. For more information, please continue to pay attention to Qijia. com. Bian Xiao will answer them one by one.

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