Loan parameters
Repayment method explanation
Equal Payment
Each month repayment amount is the same, with a larger proportion of interest in the early repayment, and a larger proportion of principal in the later repayment.
advantage: month payment is fixed,Easy to plan
shortcoming: total interest is relatively high
Equal Principal
Each month repayment principal is the same, interest decreases month by month, and month payment decreases month by month.
advantage: total interest is less
shortcoming: Early stage month payment is higher
Calculate公式
Equal Payment: month payment = Loan amount × [month interest rate × (1+month interest rate)^repayment month number] / [(1+month interest rate)^repayment month number - 1]
Equal Principal: month payment = (Loan amount ÷ repayment month number) + (remaining principal × month interest rate)
Notes
- Actual Interest Rate may vary due to personal credit status
- Some banks may charge fees
- Early repayment may have penalties
- It is recommended to choose the appropriate repayment method based on personal economic situation