Average capital repayment method, that is, the borrower repays the loan principal with the same amount (loan amount/loan months) every month, calculates the monthly loan interest according to the remaining loan principal at the beginning of the month, and settles it every month, and the sum of the two is the monthly repayment amount.

Equal principal repayment formula

Average capital repayment method is also called interest with principal repayment method, that is, interest is settled with the repayment of monthly loan principal, and the repaid principal will no longer participate in the calculation of interest in the next period. The calculation formula is as follows:

Credit principal amount

Equal monthly repayment of principal = ×× [1+ (repayment months -n+ 1) × monthly interest rate]

Number of repayment months