Which is the best deal, interest before principal or equal principal and interest?

The so-called interest before principal.

It is to repay the interest first and finally the principal. Equal principal and interest.

It means that part of the principal plus interest is repaid every month, and the repayment amount is the same every month. For example, if you borrow 100,000 credit, you don't need to repay the principal in the first three years, as long as you repay the interest every month, and finally repay the 100,000 principal. The disadvantage of equal principal and interest is that the interest is higher than that of equal principal and interest, and the pressure of repayment in the last month is high.

The advantage of equal principal and interest is that the pressure of debt is evenly apportioned, and the interest is generally at least 1 3 lower than that of equal principal and interest, and the disadvantage is that the utilization rate of funds is not as high as the interest first and then the principal. Finally, to sum up, the interest of equal principal and interest is definitely lower than that of interest first and principal later (it must be compared with the same type of loan, and personal and business loans cannot be taken.

Comparison), as for how to choose between the two, it still depends on the use of your personal funds, if it is for personal consumption, it is recommended to choose the same amount of principal and interest, if it is used for enterprise or project operation, you can choose to pay interest first and then principal, so that you can return the principal when the project is completed.

You can choose whether to repay the principal first or equal principal and interest according to your actual situation

1. Interest before principal means that the interest is paid first after the loan is paid. The principal is then paid as agreed.

2. Equal principal and interest refers to the repayment of the same amount of loan (including principal and interest) every month during the repayment period.

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In general, equal principal and interest will be repaid.

It is more cost-effective because the total interest is relatively small, but if the funds are small, choose to interest first and then principal.

It's better.

Interest-first-principal later-principal is usually referred to as the "equal principal and interest method".

Loan. If it is the same interest rate and the same time, the same amount of principal.

The interest to be paid will be less than the repayment method of equal principal and interest, but the pressure of equal principal and interest repayment in the early stage is high, and users can choose according to their own economic situation.

1. In the equal principal and interest method, the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month, and the equal principal and interest method is more common, so the current interest first and principal after principal usually refers to the "equal principal and interest method" repayment. Equal principal and interest refers to the monthly repayment of part of the principal and interest, ** the principal increases, the remaining principal continues to decrease, ** the interest decreases, but the total amount of principal and interest received each month is equal; Monthly** interest is reduced because the borrower will only pay interest on the remaining principal each month. The difference between the income of the same equal principal and interest with an annualized return of 14% and the income of the interest-first and principal projects is that the investor who pays the first interest and the principal receives the same amount of principal interest every month.

2. The investor who has the same amount of principal and interest receives the remaining principal and interest that has not been repaid by the borrower every month. The advantage of interest before principal is that you can obtain the expected return without repeated investment, but the disadvantage is that the liquidity of funds is not as good as the equal principal and interest, and the users who borrow interest first and then principal are generally used to engage in business capital turnover, and the security of funds and the security of the project are correlated with a higher degree of relative risk.

Further information: 1. In the process of repayment, you only need to repay the interest every month, and the repayment method of repaying the principal in a lump sum after the loan expires; The equal principal and interest is the same monthly repayment amount, but the monthly repayment amount includes the principal and interest, and the interest accounts for a higher proportion of the monthly repayment in the previous period of equal principal and interest.

2. The repayment pressure of interest first and principal after principal is lower than that of equal principal and interest, after all, as long as the interest is repaid every month, the equal principal and interest must not only repay the interest but also the principal; The interest-then-principal repayment method is suitable for situations where the loan funds are not very high.

3. Interest before principal and equal principal and interest can be repaid in advance in the process of repayment.

It can be partially or fully repaid when repaying, and users can flexibly arrange according to their income. In the case of partial repayment, the monthly repayment amount or interest will be recalculated.

Here, we take a loan of 10,000 yuan and repay it in 12 installments as an example, with interest first and principal later.

The calculated interest is 1285 yuan, equal principal and interest.

The calculated interest is in yuan, which means that the interest that needs to be paid is less after the interest. However, the pressure of repayment in the early stage of interest and principal is small, and the principal must be repaid in one lump sum in the last installment, while the equal amount of principal and interest only needs to be repaid in each installment. Therefore, both have their advantages and disadvantages, and neither one is better.

If you are short of funds in the early stage and have a strong ability to repay in the later stage, you can choose to interest first and then principal. And if you want to share the repayment pressure, then choose the same amount of principal and interest.

Further Information: What does it mean to pay interest first and equal principal and interest?

1. Interest before principal. It is suitable for users with high repayment pressure and less funds in the early stage, which means that the borrower repays the loan principal in a lump sum on the loan maturity date, and the interest is repaid on a monthly basis.

2. Equal principal and interest. It means that the borrower repays the same amount every month, including the principal and interest, and the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and settled month by month.

Which is the best deal, interest before principal or equal principal and interest?

1. Interest before principal. Interest = Principal Annual Interest Rate.

Loan term. 2. Equal principal and interest. Monthly Principal and Interest Payment = [Principal x Monthly Interest Rate.

x (1 + monthly interest rate) number of months of loan ] 1 + monthly interest rate) number of months of repayment - 1].

To evaluate which is more cost-effective, let's take Alipay's borrowing as an example, which is currently one of the most well-known products in private small loans, borrowing and repaying, daily interest, and a variety of repayment methods, depending on the borrower's qualifications.

Suppose the ant borrows.

Borrow 10,000 yuan, the daily interest rate is, and it will be repaid in 12 installments.

The total interest calculated by the equal principal and interest is RMB.

If you pay interest first and then this book, you must first calculate the annual interest rate of 5 * 365 = per 10,000, and the total interest is 10,000.

It can be seen that from the perspective of interest alone, the equal principal and interest are lower, and it is more cost-effective. However, interest before principal is more suitable for individuals or enterprises who will have a sum of money after a certain period of time, and the initial repayment pressure is not large, as long as the interest is paid, you can choose according to your own needs.

It is better to pay interest first and then capital, in fact, the risk is relatively high for the bank, and the approval is stricter, but in this case, in fact, the flow of funds in your own hands will be larger, which can produce more benefits. If the same amount is paid, the monthly repayment pressure is relatively large, and sometimes there will be some necessary considerations.

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It is more cost-effective to pay interest first and then principal or equal principal, and this article analyzes it very clearly.

Explain the equal principal and interest, interest before principal, and interest after principal.

1.Equal principal and interest: principal and interest, to be repaid monthly.

Algorithm: Principal Interest Principal Number of months = monthly repayment.

For example, if you borrow 100,000 yuan from the bank, with a monthly interest rate of 5% and a term of 1 year, then your monthly repayment amount is:

100,000 yuan.

2.Interest before principal: interest is repaid first every month and the principal is repaid at maturity.

The algorithm is simple.

For example, if you take out a loan of 100,000 yuan from the bank, with a monthly interest rate of 6% and a term of 1 year, then your monthly repayment amount is:

Monthly repayment of 600 yuan interest, 100,000 yuan of principal repayment in the 12th month 600 yuan of interest after interest: return of interest principal after maturity.

Algorithm: Principal Interest Number of Months Principal Repayable at maturity For example, if you have a loan of 100,000 yuan in the bank, the monthly interest rate is 7%, and the term is 1 year, then the amount to be repaid after maturity is:

100,000 yuan.

There is also a way to borrow a mortgage.

Equal Principal: The principal amount of the monthly instalment repayment remains the same, and the interest changes as the principal amount owed decreases, and the interest only pays the interest on the actual amount owed each month.

For example, if you borrow 100,000 yuan from the bank and the installment is 12 months, then the repayment required each month is the principal + the interest of the principal of the current month, that is, the monthly interest of 100,000 12 in the first month is 8333 100,000 yuan, and the second month is 8333+ (100,000 - the interest after the principal repaid in the previous month is 8333).