The calculation method is as follows:

Suppose you have a credit card bill of 1, yuan to be repaid, and the scheme given by the bank is divided into 12 installments, with the repayment principal of 833.33 yuan and the handling fee (that is, interest) of each installment. 66 yuan

Then it is:

1, the repayment principal of 833.33 yuan in the first month, and you always * * *.

2. The principal of 833.33 paid in the second month, you always use it for 2 months.

3. By analogy, the principal of 833.33 repaid in the 12th month will last for 12 months.

4, then the total fund used by * * * is 833.33 yuan, which is all added up after 78 months of use.

5, the total interest paid by * * * is 791.96.

Extended information

1. Generally speaking, the handling fee for general credit card installment payment for one year is lower than the annual cash withdrawal interest of 18%, and higher than the bank's one-year commercial loan interest of 5.31%.

2. It is worth mentioning that the loan interest rate of commercial banks has been lowered many times in recent years, but the standards of credit card installment fees and cash withdrawal interest have rarely changed. Although the standards of credit card installment fees in different banks are different, the calculation methods are roughly the same.

3. Suppose the installment amount is 12 yuan, divided into 12 installments, and 1 yuan is repaid in each installment (month). The handling fee is .6%/ month, and the actual monthly deduction is 1+12×.6%=17.2 yuan.

4. If other factors are not considered, the convertible nominal annual interest rate is 7.2%. However, the cardholder did not always owe the bank RMB 1,2. In the last month, he actually owed the bank 1 yuan, but the bank still charged a handling fee of RMB 1,2.

Baidu encyclopedia credit card installment