Matching principal and interest is a way to repay loans. Matching principal and interest means paying the same amount of loans (including principal and interest) every month during the repayment period. This is a concept different from average capital. Although the monthly repayment amount may be lower than the average capital repayment method at the beginning, the interest paid in the end will be higher than the average capital repayment method commonly used by banks.

Extended data:

The calculation formula of monthly repayment amount is as follows:

[loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]=[( 1+ monthly interest rate) repayment months-1]

The following example illustrates the equal principal and interest repayment method.

Suppose the borrower obtains a personal housing loan of 200,000 yuan from the bank, with a loan term of 20 years and an annual interest rate of 4.2%, and pays the principal and interest on a monthly basis. According to the above formula, the monthly repayment of principal and interest is 1233.5438+04 yuan.

The above results only give the sum of the principal and interest payable each month, so it is necessary to decompose this sum of principal and interest. Still on the basis of the above example, one month is one installment, the balance of the first loan is 200,000 yuan, the interest payable is 700 yuan (200,000× 4.2%/12), the principal is 533. 14 yuan, and the bank loan is still 19466.86 yuan; The interest payable in the second phase is (199466.86× 4.2%/12).

References:

Baidu Encyclopedia-"Equal principal and interest"