How to calculate interest on early repayment of borrowed money

Calculation method of borrowing early repayment interest: 1. Calculation of interest days: the number of days from the borrowing date to the early repayment date; 2. Calculation of daily interest rate: annual interest rate divided by 360; 3. Calculation of interest amount: remaining The principal is multiplied by the daily interest rate multiplied by the number of days of interest.

How to calculate the interest on borrowing early repayment

The calculation method of borrowing early repayment interest is as follows:

1. Number of days to calculate interest: The number of days from the borrowing date to the early repayment date.
2. Calculate the daily interest rate: The annual interest rate agreed upon when borrowing is divided by 360 to obtain the daily interest rate.
3. Calculate the interest amount: Remaining principal x daily interest rate x number of interest days

##Example:

Assumption The borrower borrowed 10,000 yuan, with an annual interest rate of 10%, a loan period of 12 months, and early repayment after 30 days.

1. Number of days to calculate interest: 30 days
2. Calculation of daily interest rate: 10% ÷ 360 ≈ 0.00027%
3. Calculate the interest amount: 10000 yuan x 0.00027% x 30 days ≈ 8.1 yuan

Therefore, the borrower’s interest on early repayment is 8.1 yuan.

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