Home Loan Calculator (Philippines)
Estimate the monthly amortization on a bank or Pag-IBIG housing loan, plus the total interest over the term.
Compute your monthly amortization
| Loan amount | |
|---|---|
| Total interest | |
| Total amount payable |
Estimate only. Diminishing uses your annual rate (standard for home and most bank loans). Add-on / flat uses a monthly rate and charges interest on the full amount the whole term — it looks cheaper than it is, so the same number as a diminishing rate would cost much more. Actual loans include fees and insurance not shown here.
How home loan payments work
Home loans are amortized (diminishing balance): each month you pay interest on the remaining balance plus a bit of principal, in equal monthly payments. The formula is payment = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the annual rate divided by 12, and n is the number of months. Because the balance falls a little every month, the interest share of each payment falls with it and the principal share grows.
Worked example: ₱2,000,000 at 7% over 20 years
These are the calculator's starting values. Stepping through them:
- Monthly rate. 7% ÷ 12 = 0.5833% a month, over 240 payments.
- Monthly amortization. Putting those into the formula gives ₱15,505.98 a month, every month, for 20 years.
- First payment split. Interest is ₱2,000,000 × 0.5833% = ₱11,666.67, so only ₱3,839.31 goes to principal.
- Total cost. About ₱15,505.98 × 240 = ₱3,721,434.89, of which ₱1,721,434.89 is interest — about 86% of the amount borrowed.
The split only reverses in month 122 — a little past year 10 — when the principal portion of the payment finally exceeds the interest portion. That is why the balance falls so slowly at first:
| After | Balance remaining | Share of the loan repaid |
|---|---|---|
| 1 year | ₱1,952,421.00 | 2.4% |
| 5 years | ₱1,725,132.51 | 13.7% |
| 10 years | ₱1,335,473.41 | 33.2% |
| 15 years | ₱783,082.84 | 60.8% |
| 20 years | ₱0.00 | 100% |
How the term changes the cost
Lengthening the term is the usual way to make a house "affordable", and it is the single most expensive decision in the loan. The same ₱2,000,000 at 7%:
| Term | Monthly amortization | Total interest | Total payable |
|---|---|---|---|
| 10 years | ₱23,221.70 | ₱786,603.50 | ₱2,786,603.50 |
| 15 years | ₱17,976.57 | ₱1,235,781.78 | ₱3,235,781.78 |
| 20 years | ₱15,505.98 | ₱1,721,434.89 | ₱3,721,434.89 |
| 25 years | ₱14,135.58 | ₱2,240,675.18 | ₱4,240,675.18 |
| 30 years | ₱13,306.05 | ₱2,790,177.97 | ₱4,790,177.97 |
Moving from 20 to 30 years saves ₱2,199.93 a month but adds ₱1,068,743.07 in interest — over 30 years you would pay more in interest than you borrowed. Going the other way, 15 years costs ₱2,470.59 more a month and saves ₱485,653.12.
How the rate changes the cost
Housing-loan rates move with the market and with how long you fix them, so it is worth knowing what one percentage point is worth before you shop. On ₱2,000,000 over 20 years:
| Annual rate | Monthly amortization | Total interest |
|---|---|---|
| 5% | ₱13,199.11 | ₱1,167,787.55 |
| 6% | ₱14,328.62 | ₱1,438,869.08 |
| 7% | ₱15,505.98 | ₱1,721,434.89 |
| 8% | ₱16,728.80 | ₱2,014,912.33 |
| 9% | ₱17,994.52 | ₱2,318,684.59 |
Each extra point costs roughly ₱1,198.85 a month on this loan. Shaving even half a point off your rate, or repricing well at the end of a fixing period, is worth more than most people expect.
Bank vs Pag-IBIG housing loan
- Pag-IBIG housing loan — for members; rates depend on the fixing period you choose, and the loanable amount depends on your contributions and capacity.
- Bank home loan — rates and terms vary by bank and how long you fix the rate.
Rates change often — confirm the current rate with the lender, then plug it in above.
What this calculator assumes
- Principal and interest only. A real housing loan also carries mortgage redemption insurance (MRI) and processing costs, so the amount debited each month is higher than the amortization shown here.
- One rate for the whole term. Philippine housing loans are usually fixed for a chosen period and then repriced. Model the fixed period at the agreed rate, then re-run the calculator on the remaining balance at a plausible new rate to stress-test it.
- The loan amount, not the property price. Enter the price minus your down payment — the calculator does not know either.
- Payments made on time, with no prepayments. Extra principal payments shorten the term and cut total interest; penalties do the reverse.
Common mistakes
- Comparing a bank's diminishing rate with an add-on rate. Some loans are quoted as a flat monthly "add-on" rate, which costs close to double the same number on a diminishing basis. See the personal loan calculator for a side-by-side.
- Budgeting from the amortization alone. Insurance, association dues, real property tax, and maintenance are real monthly costs on top of it.
- Choosing the longest term available by default. It is the lowest payment and by far the highest total cost.
- Ignoring the repricing date. A payment that is comfortable at today's fixed rate may not be after the fixing period ends.
Frequently asked questions
How much is the monthly amortization on a ₱2,000,000 home loan?
About ₱15,505.98 a month at 7% over 20 years, with
₱1,721,434.89 of total interest and ₱3,721,434.89 repaid in
all. Change the amount, rate, or term above for your own figures.
Why is my bank's quote higher than this?
Because a housing loan is more than principal and interest: mortgage redemption
insurance and processing costs get added on top of the amortization. Ask the
lender for the full monthly billing, not just the amortization factor.
Does paying extra principal actually help?
Yes, and much more than on a flat-rate loan. Interest is charged on the
outstanding balance, so any extra principal permanently removes the interest
that balance would have generated for the rest of the term. Confirm your
lender's prepayment terms first.
How much house can I afford?
Work backwards from net pay rather than gross. Estimate your monthly net with
the Take-Home Pay Calculator, decide
what share of it you are willing to commit, then adjust the loan amount above
until the amortization matches — remembering to leave room for insurance,
dues, and taxes.
Can I use this for a lot-only or home-improvement loan?
Yes, as long as the loan is amortized on a diminishing balance, which is the
standard for secured loans. Just enter that loan's amount, rate, and term.
Curious how much house you can afford? Start from your net pay with the Take-Home Pay Calculator, and compare a personal loan if you're weighing options. Borrowing a smaller amount short-term? An SSS salary loan is usually the cheapest option available to members.
Last updated: 2026-07-08. Estimate only; excludes fees, insurance (MRI), and processing costs. Confirm actual rates and terms with your bank or Pag-IBIG. Not financial advice.