How to calculate the installment interest of the credit card?

the calculation method of credit card fee is: transaction amount × installment fee rate × installment number.

the handling fee rate for different periods is also different, depending on the standards of banks. For example, if you spend 6, yuan in three installments, and the handling fee rate is 1.95%, then the handling fee for each installment is 39 yuan, and the monthly repayment amount is 2,117 yuan. The handling fee rate for six installments is 3.6%, so the installment fee for each installment is 36 yuan.

I believe that many people will receive enthusiastic messages or even phone calls from banks after using credit cards to remind users that they can use the installment repayment service. The reason given by the bank is that staging has many advantages, such as extending the repayment period of credit cards, reducing short-term financial pressure and avoiding overdue credit cards.

But in fact, banks can't afford to pay early, so it's obviously unkind to suggest that users choose to repay by installments. So what are the benefits of credit card installment repayment for banks? In fact, it is very simple. Users' installment repayment can bring benefits to the bank, and the bank can't earn a dime from users if they repay in full before the final repayment date.

interest refers to the reward that the currency holder (creditor) gets from the borrower (debtor) for lending money or monetary capital. Including deposit interest, loan interest and interest incurred by various bonds. Under the capitalist system, the source of interest is the surplus value created by hiring workers. The essence of interest is a special transformation form of surplus value and a part of profit.

Definition:

1. Money other than the principal due to deposits and loans (different from' principal').

2. The abstract point of interest refers to the value-added amount brought by monetary funds when they are injected into the real economy and returned. Generally speaking, interest refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal). The calculation formula of interest is: interest = principal × interest rate × deposit period (that is, time).

Interest is the reward obtained by the owner of the fund for lending the fund, which comes from a part of the profits formed by the producer using the fund to play its operational functions. Refers to the value-added amount brought by monetary funds when they are injected into the real economic sector and returned. Its calculation formula is: interest = principal × interest rate× deposit period x1%

3. Classification of bank interest < P > According to the nature of banking business, it can be divided into two types: bank interest receivable and bank interest payable.

how to calculate the interest of credit card installment?

credit card installment has no interest, but only charges. Take China Merchants Bank as an example:

Cardholders can choose from 2, 3, 6, 1, 12, 18, 24 and 36 installments individually, and the single installment fee rate is %~1.67%.

calculation method of handling fee for each period:

handling fee for each period = application amount and handling fee rate for each period

For example, the application amount is 1, yuan, the handling fee rate for each period is .5%, ***1 periods

handling fee for each period = 1,.5 = 5 yuan

Then the handling fee for 1 periods is 15 =

Extended information

You can't apply for bill installment for the following transactions:

1) Cash advance transactions, installment transactions, real estate transactions and various expenses (such as annual fees, interest, late fees and other credit card charges);

2) funds that have been applied for foreign exchange purchase;

3) other transactions specified by the Bank's credit card center.

China Merchants Bank-Frequently Asked Questions on Credit Card Bill Installment

China Merchants Bank-Repayment Methods and Charges

How to Calculate Credit Card Installment Interest

1. The formula for calculating the total interest of credit card installment repayment is interest = installment amount, installment fee and number of installments. Assuming that you spend 3, yuan and apply for repayment in three installments, the installment fee is 1%, then the total interest is 3,1% 3 =

2. Usually, the more credit card installments, the more interest banks will charge. Some banks will charge installment fees in one lump sum at the first repayment, and then only need to repay the principal, such as China Merchants Bank and China Bank.

what is the interest of bank credit card installment

the interest of credit card installment may be different for each bank. Take the four major banks as an example:

1. Industrial and Commercial Bank of China

The interest of ICBC credit card installment is calculated at .9% in three installments, 1.8% in six installments, 2.7% in nine installments and 3.3 in 12 installments.

2. China Construction Bank

If the credit card of China Construction Bank is used for installment payment, it can be divided into 3 installments, 6 installments, 12 installments, 18 installments and 24 installments. Among them, except the interest in three installments is calculated at .7% per installment, the interest in six installments, 12 installments, 18 installments and 24 installments is calculated at .6% per installment.

iii. agricultural bank

if the credit card of agricultural bank is paid in installments, it can be divided into 3 installments, 6 installments, 9 installments, 12 installments and 24 installments, and no matter how many installments, the interest on the credit card installment of agricultural bank is calculated at .6% per installment.

IV. Bank of China

The installment payment of China Bank's credit card can be divided into three phases, six phases, nine phases, twelve phases, eighteen phases and twenty-four phases, in which the interest in three phases is calculated at 1.95%, the interest in six phases is calculated at 3.6%, the interest in nine phases is calculated at 5.4%, and the interest in twelve phases is calculated at 7.2% and divided into 12 parts.

there are two ways to repay the loan: matching principal and interest and average capital.

1. Matching principal and interest Matching principal and interest Compared with average capital, the total repayment interest is more, but the repayment amount is the same every month, which can reduce the repayment pressure in the early stage. The interest of this loan interest calculation method is calculated based on the total principal. Although a part of the principal is paid back later, the calculation of interest does not decrease with the decrease of the principal. The calculation formula is as follows: [loan principal × monthly interest rate ×(1+ monthly interest rate) repayment months] ÷ [(1+monthly interest rate) repayment months-1]

2. average capital, average capital. Take the mortgage as an example. If it is a house that needs a loan of 2, yuan, it will be repaid in 2 years. If average capital's calculation method is adopted, the interest will be about 15, yuan less. Average capital's repayment method is to calculate the interest according to your actual reduced principal, and the monthly repayment amount will decrease, and the principal in the monthly repayment will be the same. The specific calculation formula is as follows: monthly repayment amount = (loan principal ÷ repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.

let's stop here for the introduction of how to calculate the interest of credit card installment payment.