How are installments calculated?
In the modern consumption model, installment payment has become the preferred way for many people to purchase high-value goods or services. Whether it is shopping for large items online, investing in education or medical expenses, installment payment can effectively relieve short-term financial pressure. So, how exactly is the installment payment calculated? What are the differences in the installment rules of different platforms? This article will give you a detailed analysis based on the hot topics and hot content on the Internet in the past 10 days.
1. Basic calculation method of installment payment
The core of installment payment isPrincipal, interest (or handling fee) and number of periodscombination. Common calculation methods include equal principal and interest and equal principal:
| Calculation method | Features | Calculation formula |
|---|---|---|
| Equal principal and interest | The monthly repayment amount is fixed, including principal and interest | Monthly repayment amount = [principal × monthly interest rate × (1 + monthly interest rate) ^ number of periods] / [ (1 + monthly interest rate) ^ number of periods - 1] |
| Equal amount of principal | The fixed principal + interest on the remaining principal are returned every month, and the total repayment amount decreases month by month. | Monthly repayment amount = (principal/number of periods) + (remaining principal × monthly interest rate) |
2. Comparison of installment rates on different platforms (popular data in the past 10 days)
According to the installment policies of e-commerce and financial platforms that have been hotly discussed by consumers recently, the comparison of rates is as follows:
| Platform name | 3 period rate | 6 period rate | 12 period rate | Interest-free event |
|---|---|---|---|---|
| A certain cat mall | 2.5% | 4.5% | 8.0% | Some products are interest-free for 6 periods |
| A certain dongbaitiao | 1.8% | 3.6% | 7.2% | New users’ first 3 installments are interest-free |
| bank credit card | 1.5%-2.0% | 3.0%-4.0% | 6.0%-8.0% | 12 interest-free periods for specific merchants |
| An Internet finance | 0 handling fee | 0 handling fee | 0 handling fee | Requires membership purchase |
3. Demonstration of installment calculation examples
Take the purchase of a laptop worth 6,000 yuan as an example, choose 12 installments:
| platform | total handling fee | Monthly repayment amount | Total repayment amount |
|---|---|---|---|
| A certain cat mall (8%) | 480 yuan | 540 yuan | 6480 yuan |
| Dongbaitiao (7.2%) | 432 yuan | 536 yuan | 6432 yuan |
| Bank credit card (6%) | 360 yuan | 530 yuan | 6360 yuan |
4. Answers to recent popular installment issues
1.Is it worthwhile to pay off your loan early?Recently, many platforms have adjusted their policies, and about 60% of financial institutions still charge liquidated damages of 1%-3% of the remaining period for early repayment.
2.How is the actual annualized interest rate calculated?Taking the 12-period rate of 8% as an example, the actual annual interest rate is about 14.5% (IRR calculation method), which is much higher than the surface rate.
3.What are the risks for students in installments?Disputes over "training loans" have been exposed in many places in the past 10 days, reminding students to pay special attention: installment contracts may contain hidden terms, and overdue terms will affect personal credit.
5. Things to note when paying in installments
1.Carefully compare total costs: Don’t just look at the monthly payment, calculate the total interest expense.
2.Be wary of the "zero down payment" trap: Multiple cases exposed recently show that zero down payment is often accompanied by higher interest rates.
3.Keep proof of repayment: In the era of mobile payment, it is recommended to take a screenshot and save the record after each repayment.
4.Pay attention to policy changes: Starting from the third quarter of 2023, some regions have required financial institutions to clearly disclose the annual installment interest rate.
From the above analysis, it can be seen that although installment payment is convenient, it requires consumers to rationally calculate the cost of funds. It is recommended to use the "instalment calculator" tool provided by each platform before installment, and give priority to regular channels with interest-free discounts. Proper financial planning can make installment consumption truly a tool to improve the quality of life rather than a financial burden.
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