Loan Calculator Philippines
Find your monthly amortization for a housing, car or personal loan, and see how much of what you pay is interest. Works for both diminishing balance and add-on rates. Everything is computed on your device.
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Compute your monthly amortization
Your monthly amortization
| Loan amount | |
|---|---|
| Total interest | |
| Total you will pay |
Show month-by-month schedule
| Month | Payment | Interest | Principal | Balance |
|---|
Fees, insurance and taxes charged by your lender are not included.
Add-on rate vs diminishing balance
The same quoted rate costs very different amounts depending on how interest is computed. A ₱500,000 loan at 10% a year for 36 months:
| Diminishing balance | Add-on rate | |
|---|---|---|
| Monthly payment | ₱16,133.59 | ₱18,055.56 |
| Total interest | ₱80,809.42 | ₱150,000.00 |
| Total paid | ₱580,809.42 | ₱650,000.00 |
The 10% add-on loan costs the same as a diminishing balance loan at about 17.92% a year.
How the monthly payment is computed
Diminishing balance: payment = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the loan amount, r is the yearly rate ÷ 12, and n is the number of months. Each month, interest is charged on the remaining balance and the rest of your payment reduces the balance.
Add-on rate: payment = (P + P × yearly rate × years) ÷ n
Loan terms here go up to 40 years.
Frequently asked questions
What is the difference between an add-on rate and a diminishing balance rate?
With a diminishing balance rate, interest is charged each month only on what you still owe, so the interest part of your payment gets smaller over time. With an add-on rate, interest is computed on the full loan amount for the whole term and added on top, even though you are paying the loan down. That is why an add-on rate costs more than the same-looking diminishing balance rate.
What is the equivalent diminishing balance rate?
For add-on loans, the calculator finds the diminishing balance rate that would give you exactly the same monthly payments. Use it to compare an add-on offer with a bank loan quoted at a diminishing balance rate.
Why is my last payment slightly different?
Monthly payments are rounded to the centavo. The small differences add up over the term, so the last payment is adjusted to make your balance exactly zero.
Does this include fees and insurance?
No. Lenders may also charge processing fees, insurance, taxes and other charges. Ask your lender for a written breakdown of all charges and the total amount you will pay before you sign.
Can I pay my loan early?
It depends on your lender. Some allow early payment without a penalty, while others charge a fee. With a diminishing balance loan, paying early reduces the interest you pay. With an add-on loan, check how the lender computes any interest rebate.
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