How to use it
Enter how much you borrow, the yearly interest rate, and how long you have to pay it back. This works for car loans, housing loans, personal loans and salary loans that use a fixed monthly payment.
The formula
This is the standard amortized loan formula:
payment = P × r ÷ (1 − (1 + r)^−n)
- P is the amount borrowed
- r is the monthly rate: the yearly rate ÷ 12 ÷ 100
- n is the number of monthly payments
Example: ₱500,000 at 9% a year for 5 years. r = 0.0075, n = 60. The payment is about ₱10,379.18 a month. Over 60 months you pay about ₱622,751, so about ₱122,751 is interest.
Common questions
What is "add-on" interest, and why is my bank's payment higher?
Some lenders in the Philippines quote an add-on rate. They charge interest on the full amount for the whole term, even as you pay it down. A 1% a month add-on rate costs about twice as much as 12% a year on this calculator. Always ask for the effective interest rate. Lenders must show it under the Truth in Lending Act.
Does this include fees and insurance?
No. Processing fees, documentary stamp tax and insurance are added on top. Ask the lender for the full disclosure statement.
How do I pay less interest?
A shorter term, a lower rate, or extra payments on the principal. Check first whether the loan has a fee for paying early.
Last checked: 2026-09-25