What Does "Returns to Scale" Mean?

Equal principal and interest repayment, also known as regular interest payment, that is, the borrower repays the principal and interest of the loan at an equal amount each month, and the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled monthly. Add the total principal of the mortgage loan to the total interest and spread it evenly over each month of the repayment period. As a repayer, a fixed amount is returned to the bank each month, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month.

Equal principal and interest repayment

Since the monthly repayment amount is equal, the monthly repayment in the initial period of the loan, after excluding the interest paid monthly, the repayment

Personal home purchase mortgages generally have a term of more than one year. One of the methods of repayment is the equal principal and interest repayment method, that is, from the second month after the loan is used, the loan principal and interest are repaid at an equal amount every month . Calculated as follows:

per month

Ten thousand yuan equivalent principal and interest repayment table

Loan life	Annual interest rate%	Monthly interest rate	Monthly repayment amount (yuan)
1	6.31	5.258	Li Sui Benqing
2	6.40	5.333	445.01
3	6.40	5.333	306.04
4	6.40	5.542	237.84
5	6.45	5.542	196.36
6	6.80	5.667	169.53
7	6.80	5.667	149.95
8	6.80	5.667	135.34
9	6.80	5.667	124.05
10	6.80	5.667	115.08
11	6.80	5.667	107.8
12	6.80	5.667	101.78
13	6.80	5.667	96.73
14	6.80	5.667	92.44
15	6.80	5.667	88.77
16	6.80	5.667	85.59
17	6.14	5.117	82.82
18	6.80	5.667	80.39
19	6.80	5.667	78.24
20	6.80	5.667	76.33
twenty one	6.80	5.667	74.64
twenty two	6.80	5.667	73.12
twenty three	6.80	5.667	71.75
twenty four	6.80	5.667	70.52
25	6.80	5.667	69.41
26	6.80	5.667	68.4
27	6.80	5.667	67.48
28	6.80	5.667	66.65
29	6.80	5.667	65.89
30	6.80	5.667	65.19

Families with stable incomes are not allowed to invest too much in the early stage due to economic conditions, such as civil servants, teachers, bosses and other groups with relatively stable income and job opportunities.

The difference between equal principal and interest

The equal principal repayment method is to repay the principal in equal monthly amounts, and then calculate the interest based on the remaining principal. Therefore, because the principal is large in the early stage, more interest will be paid, so that the repayment amount is larger in the initial stage, The subsequent time decreases monthly. The advantage of this method is that it reduces the interest expense due to the larger repayment in the initial stage, which is more suitable for families with strong repayment ability.

The equal principal and interest repayment method is to repay the same amount of loans (including principal and interest) each month during the repayment period. This way, because the monthly repayment amount is fixed, the household income expenditure can be controlled in a planned manner, and it is also convenient Each household determines its ability to repay loans based on its income.