How to calculate the formula of interest?

1. Calculation formula of interest: principal × annual interest rate (percentage) × deposit period.

2. Equal principal and interest method:

Calculation formula: monthly repayment amount = principal * monthly interest rate *[( 1+ monthly interest rate) n/[( 1+ monthly interest rate) n- 1]

Where n represents the number of months of loan, and n represents the power of n, such as 240, representing the power of 240 (20 years and 240 months of loan).

Monthly interest rate = annual interest rate/12

Total interest = monthly repayment amount * loan months-principal

3, the law of average capital:

Calculation formula: monthly repayment amount = principal /n+ remaining principal * monthly interest rate.

Total interest = principal * monthly interest rate * (loan months /2+0.5)

4. Loan interest is generally divided into annual interest rate, monthly interest rate and daily interest rate.

5. The interest rate is expressed as a percentage, the monthly interest rate is expressed as one thousandth, and the daily interest rate is expressed as one thousandth.

6. Annual interest rate ÷ 12= monthly interest rate; Monthly interest rate ÷30= daily interest rate; Annual interest rate ÷360= daily interest rate.

Extended data:

1. Basic formula for calculating interest. The basic formula for calculating the interest of savings deposits is: interest = principal × deposit period × interest rate;

2. Interest rate conversion, in which the conversion relationship among annual interest rate, monthly interest rate and daily interest rate is:

Annual interest rate = monthly interest rate × 12 (month) = daily interest rate ×360 (days);

Monthly interest rate = annual interest rate ÷ 12 (month) = daily interest rate ×30 (days);

Daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days).

References:

Interest calculation formula-Baidu Encyclopedia? Equal principal and interest method-Baidu Encyclopedia? Average capital method-Baidu encyclopedia