Loan Calculator
Compute your monthly amortization for any type of loan.
Understanding Loan Amortization in the Philippines
A loan amortization schedule breaks down each monthly payment into two components: the portion that reduces your principal (the amount you borrowed) and the portion that pays interest. In the early months of a loan, most of your payment goes toward interest. As time passes, more goes toward reducing the principal — this is called the amortization schedule.
The Amortization Formula
The standard formula used by banks and lending institutions in the Philippines to compute equal monthly payments is:
Where: M = monthly payment, P = loan principal, r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments.
Common Philippine Loan Types and Interest Rates
| Loan Type | Lender | Typical Annual Rate | Max Term |
|---|---|---|---|
| SSS Salary Loan | SSS | 10% p.a. | 2 years |
| Pag-IBIG Multi-Purpose Loan | Pag-IBIG | 10.5% p.a. | 2 years |
| Pag-IBIG Housing Loan | Pag-IBIG | 5.375%–9% p.a. | 30 years |
| Bank Personal Loan | BDO, BPI, Metrobank | 12%–36% p.a. | 3–5 years |
| Bank Car Loan | Commercial banks | 7%–15% p.a. | 5–7 years |
| Bank Home Loan | Commercial banks | 5%–9% p.a. | 20–25 years |
| Credit Card Cash Advance | Banks | 24%–36% p.a. | Revolving |
Rates are approximate and subject to change. Always verify with your lender before signing any loan agreement.
How to Apply for a Pag-IBIG Housing Loan
Pag-IBIG (HDMF) offers one of the most affordable housing loan rates in the Philippines. To qualify, you must:
- Be an active Pag-IBIG member for at least 24 months (contributions may be backdated)
- Not be more than 65 years old at loan maturity
- Have a net take-home pay of at least 35% of your gross monthly income after loan payment
- Have no outstanding Pag-IBIG housing loan (or have fully paid a previous one)
The maximum loanable amount is ₱6,000,000 for socialized housing and up to ₱6,000,000 for regular housing as of 2024, depending on your gross monthly income and the appraised value of the property.
SSS Salary Loan — What You Need to Know
The SSS Salary Loan allows active SSS members to borrow up to 2 months' worth of their average monthly salary credit (MSC). Key facts:
- Interest rate: 10% per annum, diminishing principal
- Loan term: 12 or 24 months
- Service fee: 1% of the loan amount (deducted from proceeds)
- Requirement: At least 36 months of posted contributions, 6 of which must be within the 12 months before application
Frequently Asked Questions — Philippine Loans
What is the difference between add-on rate and diminishing balance rate?
An add-on rate applies interest to the full original principal throughout the loan term, making it more expensive than it appears. A diminishing balance rate applies interest only to the remaining principal — this is what our calculator uses, and it is what banks use for standard amortization loans. Always ask your lender which method they use.
How much can I borrow from Pag-IBIG?
For a multi-purpose loan (MPL), you can borrow up to 80% of your total Pag-IBIG Regular Savings (PS), but not exceeding ₱6,000,000. For housing loans, the loanable amount is based on your gross monthly income, the appraised value of the property, and Pag-IBIG's lending guidelines. Minimum gross monthly income requirement is ₱10,000.
Can I pay my loan early (prepayment) without penalty?
It depends on your lender. Government loans (SSS, Pag-IBIG) generally allow early payment without penalty. Commercial banks may charge a prepayment penalty of 1%–5% of the outstanding balance if you pay off the loan early — check your loan agreement. Prepaying reduces your total interest cost significantly.
What happens if I miss a loan payment in the Philippines?
Missing a payment results in penalty charges (typically 1%–3% of the missed payment per month) and a negative credit history at the Credit Information Corporation (CIC). Repeated missed payments can lead to loan default, legal action, asset foreclosure (for secured loans), and being blacklisted from future government loan programs.
Is a co-maker required for Philippine loans?
For SSS and Pag-IBIG salary loans, a co-maker is required if the borrower does not meet the minimum contribution requirement. For bank personal loans, a co-maker (co-borrower) may be required if your income is insufficient or your credit score is low. Housing loans can have a co-borrower (typically a spouse) to increase the loanable amount.