The monthly payment calculation details are as follows:

1. Equal principal repayment: monthly payment = (borrowing amount/borrowing months) (borrowing amount-accumulated principal repaid)× Monthly interest rate.

2. Repayment of equal principal and interest: monthly payment = [borrowing amount × monthly interest rate × (1-month interest rate) ^ number of borrowing months] ÷ [ (1-month interest rate) ^ number of borrowing months - 1].

Equal principal and interest payments are also called regular interest payments: it means that the borrower repays the loan principal and interest in equal amounts 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 monthly increment increases, the interest decreases month by month, and the total monthly repayment amount remains unchanged.

The equal-amount principal is also called the interest-following-principal repayment method, and the equal-amount principal repayment method: it means that the lender allocates the principal to each month and pays off the last transaction day to this time at the same time. Interest between repayment dates.

The characteristics of equal amounts of principal and equal amounts of principal and interest are as follows:

1. Characteristics of equal amounts of principal and interest

The monthly repayment amount is the same. In the distribution ratio of "deposit and interest", in the first half of the period, the proportion of interest repaid is large and the proportion of principal is small. After half of the repayment period, it gradually changes to a large proportion of principal and a small proportion of interest. The total interest paid is more than the equal principal method, and the longer the loan term, the greater the interest difference.

However, since the repayment amount of this method is the same every month, it is suitable for family spending plans, especially young people, who can use the principal and interest method, because as age increases or job promotion, income will increase.

2. Characteristics of equal principal payments

The monthly repayment amount is different. It divides the loan principal evenly according to the total number of months of repayment (equal principal payments), and then Adding the monthly interest on the remaining principal from the previous period, the monthly repayment amount is formed. Therefore, the equal principal payment method has the largest repayment amount in the first month, and then decreases month by month, and the repayments become smaller and smaller. The total interest paid is less than the equal principal and interest method.

However, this repayment method has a higher repayment amount in the early period of the loan period, so it is suitable for borrowers with strong repayment ability in the early period. Older people can use the principal method, because as age increases, the repayment amount will be higher. When you are old or retired, your income may decrease.