How is the formula for calculating equal principal and interest

Equal principal and interest calculation formula: Loan principal Monthly interest rate (1 + monthly interest rate) Number of repayment months 1 + monthly interest rate) Number of repayment months -1

The formula for calculating equal principal amount: monthly repayment amount = (loan principal number of repayment months) + (principal - cumulative amount of principal repaid) monthly interest rate.

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

Equal principal and interest calculation formula: monthly repayment amount = loan principal [monthly interest rate (1 month interest rate) number of repayment months]. The equal principal and interest repayment method is to add the total principal amount and the total interest of the mortgage loan, and then spread it evenly among each month of the repayment period, and the monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month.

What is the difference between equal principal and equal principal and interest?

1. The characteristics of equal principal.

The monthly repayment amount is different, showing a state of decreasing month by month; It is to divide the loan principal equally according to the total number of months of repayment, plus the interest on the remaining principal of the previous period, so as to form a monthly repayment, so the repayment amount of the first month of the equal principal method is more, and then decreases month by month, and the more you repay, the less you repay.

2. The characteristics of equal principal and interest.

The monthly repayment amount is the same, in essence, the proportion of principal increases month by month, the proportion of interest decreases month by month, and the monthly repayment amount remains unchanged, that is, in the distribution ratio of "principal and interest" of the monthly payment, the proportion of interest repaid in the first half of the period is large and the proportion of principal is small, and the proportion of principal is gradually changed to a large proportion of principal and a small proportion of interest after the repayment period is more than half.

In other words, under the method of equal principal and interest repayment, the proportion of interest gradually decreases as the remaining principal of the loan gradually decreases. In the equal principal repayment method, the amount of principal repaid each month remains the same, but the interest gradually decreases, and the amount of monthly repayment becomes less and less.

Is it cost-effective to repay the principal and interest in equal amounts?

From the perspective of repayment methods, there are two main repayment methods at present, one is equal principal repayment, and the other is equal principal and interest repayment. Buyers who choose an equal principal and interest loan will repay less principal and more interest in the early stage, and they will need to repay more principal when repaying in advance, so they will suffer more losses when repaying in advance, that is, it is not cost-effective. If the buyer intends to repay the loan early, then when choosing the repayment method, you should use the repayment method of equal principal, although the repayment pressure before the equal principal is high, but you will suffer less loss when you repay the loan early.

Of course, this does not mean that buyers who have adopted the equal principal and interest repayment method are suitable for early repayment, which can still be achieved through other means. If the buyer chooses the repayment method of equal principal and interest, but still wants to repay the loan in advance, then he can first apply to the bank to change to the repayment method of equal principal, so that the equal principal can be used to repay in advance, but this is a prerequisite, and the bank needs to agree to the application to change the repayment method.

1. The calculation method of equal principal and interest repayment is as follows: monthly repayment amount of equal principal and interest = loan principal x monthly interest rate x (1 + monthly interest rate) number of repayment months] [(1 + monthly interest rate) number of repayment months - 1.

2. Equal principal and interest repayment is one of the ways to repay the mortgage, specifically, the loan principal plus the interest generated, and then evenly divided into each month during the repayment period, that is, a fixed amount must be repaid every month.

What is Equal Principal and Interest? "/>

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

Equal principal and interest are different from equal principal, although the monthly repayment amount may be lower than the amount of equal principal repayment at the beginning of the repayment, but the final interest repayment will be higher than the equal principal repayment method, which is often used by banks.

Equal principal and interest calculation formula: monthly repayment amount = [loan principal monthly interest rate (1 + monthly interest rate) number of repayment months] [1 + monthly interest rate) number of repayment months 1], that is, the principal and total interest of repayment are equally divided into each repayment month, and the monthly repayment principal and interest are the same, that is, the monthly repayment amount is unchanged.

Equal principal and interest payments require more interest than equal principal payments. Interest accounts for the majority of the monthly repayment at the beginning, and the proportion of the principal increases as the repayment time increases. However, the monthly repayment amount in this way is fixed, which can control the expenditure of household income in a planned way, and it is also convenient for each family to determine the repayment ability according to their own income.

The following is an example of the equal principal and interest repayment method, assuming that the borrower obtains a personal housing loan of 200,000 yuan from the bank, with a loan term of 20 years, an annual interest rate on the loan, and monthly repayment of principal and interest. According to the above formula, the sum of principal and interest payable per month is yuan.

The above results only give the sum of principal and interest payable each month, so this sum of principal and interest needs to be broken down. Still based on the above example, one month is one period, the balance of the first loan is 200,000 yuan, and the interest should be paid 700 yuan (200,000 yuan, the principal is paid, and the bank loan is still owed; Interest payable in the second instalment (yuan.

Further information: The repayment method is to add the total principal amount of the mortgage loan to the total interest, and then spread it evenly among each month of the repayment period, the monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. This method is currently the most common and long-term recommended by most banks.

The equal principal and interest repayment method means that the borrower repays the principal and interest of the loan in equal amounts every month, in which the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and settled month by month.

The equal principal repayment method means that the borrower repays the loan principal at the same amount (loan amount and number of loan months) every month, and the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and settled month by month, and the total of the two is the monthly repayment amount.

The formula for calculating the equal principal and interest method is as follows:

Monthly repayment amount Principal of borrowing Monthly interest rate (1 month interest rate) Number of repayment months [(1 month interest rate) Number of repayment months 1].

Total repayment amount = repayment amount of each instalment * number of repayment months.

Here are some examples:

Loan of 500,000 for 20 years, the interest rate is calculated according to the interest rate

Monthly repayment of 500,000

Yuan. Total repayment amount = RMB.

In addition, there is an equal amount of principal, the formula for which is relatively simple, and the formula and base date examples are as follows:

Monthly repayment amount = monthly repayment principal + monthly repayment interest;

Monthly repayment principal = total loan amount Number of months of the loan;

Monthly repayment interest = loan principal balance * monthly loan interest rate (monthly loan interest rate = annual interest rate 12);

Loan principal balance = total loan amount - number of months repaid * monthly repayment principal.

Example: Loan of 500,000; Loan for 20 years; Interest Rate Calculation:

Monthly repayment principal = 500,000 240 = yuan;

Interest repayment in the first month = 500,000 * yuan;

Total repayment in the first month = RMB.

The second month interest is reduced:24 yuan.

Total repayment for the second month = .24 yuan.

After that, the yuan decreases every month.

The total repayment amount is $1.

Monthly repayment amount for equal principal and interest repayment method = [Monthly Interest Rate * Loan Principal * (Monthly Interest Rate + 1) Number of Repayment Months ] 1 + Monthly Interest Rate ) Number of Repayment Months -1]. This calculation method is very complicated, in fact, equal principal and interest repayment means that the monthly repayment amount is fixed, but the proportion of principal and interest is constantly changing.

With the passage of time, because the loan owed to the bank is getting less and less, the corresponding interest is also getting less and less, so although the equal principal and interest repayment method is the same as the total amount of monthly repayment, the proportion of the principal part of the total amount will be more and more, and the proportion of the interest amount will be less and less. Whether it is equal principal and interest repayment, or equal principal repayment, it is easy to understand, that is, how to repay the bank loan, but the specific number calculation method is very complicated, the general bank will list the details of the monthly repayment, including the amount of principal and interest, so as long as you ask the bank to know the specific result.

The formula for calculating equal principal and interest is: loan principal [monthly interest rate (1 + monthly interest rate) number of months of repayment]. Equal repayment of principal and interest means that the borrower repays the principal and interest of the loan in equal amounts every month, and the interest on the loan each month is calculated according to the remaining loan principal at the beginning of the month.

Characteristics of equal principal and interest repayment method.

The principal of the equal principal and interest repayment method increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged; The disadvantage of the equal principal repayment method is that the interest is more expensed, and the interest at the beginning of the repayment accounts for most of the monthly contribution, and the proportion of the principal in the contribution increases as the principal is gradually returned. However, this method has a fixed monthly repayment amount, which can control the expenditure of household income in a planned way, and also facilitate each family to determine the repayment ability according to their own income.

Equal principal and interest repayment is suitable for the population.

The repayment method of equal principal and interest is suitable for people with stable family income, especially for people whose current income is not very high and the financial pressure is still relatively large, because the repayment pressure of equal principal and interest repayment method is much smaller than that of other repayment methods. However, it should be noted that according to the characteristics of the equal principal and interest repayment method, the interest on the part of the early repayment is relatively large, and the proportion of the principal is low, which is not suitable for people who intend to repay the loan in advance.

Precautions for mortgage repayment.

1. Pay attention to the contract.

We have signed a loan contract when we go through the loan procedures, and the buyer must pay attention to the agreement in the loan contract during the repayment of the loan, and must not default on the contract. From a contractual point of view, prepayment is a type of default, because the loan contract stipulates the repayment period. Some banks stipulate the liquidated damages that must be charged for early repayment in the loan contract, which is also known as liquidated damages, so everyone should pay attention to the content of the loan contract, and under normal circumstances, the bank will add liquidated damages clauses to the contract.

2. Don't cut off the loan.

Housing loans are long-term loans, ranging from more than ten years to thirty years, and it is difficult to guarantee that there will be no changes around you for such a long period of time. But no matter what kind of problems you have, you can't choose to cut off the supply without money, the impact of the supply cut is not small, and the bank penalty interest is relatively light. Once you don't repay the loan for more than half a year, the bank will auction your property to reduce your losses, and then not only will there be a black spot on your credit, but also the house that would soon belong to you will be gone.

3. Grasp the timing and amount of early repayment.

If friends have the intention of repaying in advance, we must pay attention to grasp the timing and amount, early repayment is not necessarily full repayment in advance, buyers can also choose to partially repay in advance, mainly depending on the buyer's own economic situation. In addition, prepayment requires a certain procedure, which does not mean that you can prepay the loan if you want to. Before the buyer is ready to repay the loan early, it is important to consult with the bank in detail.