Personal Loan Calculator (Philippines)
Estimate your monthly payment and total interest — and see the real cost of an add-on (flat) rate versus a diminishing-balance rate.
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.
Worked example: ₱100,000 at 1.5% a month for 2 years
These are the calculator's starting values, because they mirror a typical Philippine personal loan offer. Here is how the number is built, step by step:
- Step 1 — the term in months. Two years is 24 monthly payments.
- Step 2 — the interest. An add-on rate charges the monthly rate on the whole ₱100,000 for every month of the term: ₱100,000 × 1.5% × 24 = ₱36,000.00.
- Step 3 — the total. Principal plus interest = ₱136,000.00.
- Step 4 — the monthly payment. That total split evenly across 24 months = ₱5,666.67.
Notice what step 2 does not do: it never reduces the balance interest is charged on. By month 20 you have repaid most of the ₱100,000, yet you are still paying interest as though you owed all of it. That single detail is the difference between the two rate types below.
Add-on vs diminishing: the same number, two different loans
A diminishing-balance (amortized) loan charges interest only on what you still owe, so the interest portion of each payment shrinks month after month. Price the same example that way — 1.5% a month is 18% a year — and the ₱100,000 loan costs ₱4,992.41 a month with ₱19,817.84 in total interest. Against the add-on version's ₱36,000.00, that is ₱16,182.16 extra for the identical headline rate.
Put the other way round: to actually cost what a 1.5% monthly add-on costs, a diminishing-balance loan would have to charge roughly 31% a year, not 18%. The rule of thumb worth memorising is that an add-on rate prices like a little under double the same number on a diminishing basis. Switch the interest type in the calculator above to see this on your own figures.
| Headline rate | As add-on: monthly | Add-on interest | As diminishing: monthly | Diminishing interest | You overpay |
|---|---|---|---|---|---|
| 1%/mo (12%/yr) | ₱5,166.67 | ₱24,000.00 | ₱4,707.35 | ₱12,976.33 | ₱11,023.67 |
| 1.25%/mo (15%/yr) | ₱5,416.67 | ₱30,000.00 | ₱4,848.66 | ₱16,367.96 | ₱13,632.04 |
| 1.5%/mo (18%/yr) | ₱5,666.67 | ₱36,000.00 | ₱4,992.41 | ₱19,817.84 | ₱16,182.16 |
| 1.75%/mo (21%/yr) | ₱5,916.67 | ₱42,000.00 | ₱5,138.57 | ₱23,325.56 | ₱18,674.44 |
| 2%/mo (24%/yr) | ₱6,166.67 | ₱48,000.00 | ₱5,287.11 | ₱26,890.63 | ₱21,109.37 |
₱100,000 borrowed over 24 months. Every row uses the same quoted number — only the method changes.
What a longer term really costs
Stretching the term is the easiest way to make a monthly payment fit a budget, and the most expensive. Because an add-on rate charges interest per month on the full principal, doubling the term doubles the interest exactly — there is no discount for paying longer. On the same ₱100,000 at 1.5% a month:
| Term | Monthly payment | Total interest | Total payable |
|---|---|---|---|
| 12 months | ₱9,833.33 | ₱18,000.00 | ₱118,000.00 |
| 24 months | ₱5,666.67 | ₱36,000.00 | ₱136,000.00 |
| 36 months | ₱4,277.78 | ₱54,000.00 | ₱154,000.00 |
| 48 months | ₱3,583.33 | ₱72,000.00 | ₱172,000.00 |
| 60 months | ₱3,166.67 | ₱90,000.00 | ₱190,000.00 |
Going from 12 to 60 months cuts the monthly payment from ₱9,833.33 to ₱3,166.67 — but the interest climbs from ₱18,000.00 to ₱90,000.00, which is nearly as much as the amount you borrowed. Pick the shortest term whose payment your take-home pay covers comfortably.
What this calculator assumes
- Principal and interest only. Processing, disbursement, and documentary fees, credit-life insurance, and late-payment penalties are not included — and where a fee is deducted from the proceeds, you receive less than the amount you are charged interest on.
- Equal monthly payments, paid on time. No pre-termination, no skipped months, no penalty interest.
- The rate you enter is the rate you get. Most advertised rates are the lowest tier and are personalised by credit evaluation, so an approved offer is often above the headline.
So expect a quote to come in higher than this estimate. Use the calculator to compare structures, then read the lender's disclosure statement for the all-in figure before you sign.
Common mistakes
- Comparing an add-on rate to a diminishing rate head-to-head. A 1.5% monthly add-on and an 18% annual diminishing loan look like the same rate, but cost ₱36,000.00 and ₱19,817.84 respectively. Convert first, then compare.
- Judging a loan by the monthly payment alone. The lowest monthly payment usually just means the longest term, which is the most total interest.
- Ignoring fees. A one-time processing fee on a short loan can add more to the cost than a difference of several tenths of a percent in rate.
- Borrowing to the maximum term "just in case". You can always pay a short loan early, but you cannot un-pay the extra interest on a long one.
- Stacking app loans. Several small, fast loans at once are the most expensive way to borrow, and each one shortens the runway for the next payment.
Before you borrow
- Ask whether the rate is add-on or diminishing — it changes the true cost a lot.
- Check the all-in cost: processing fees, disbursement fees, and penalties, not just the monthly rate.
- Borrow only what your take-home pay comfortably covers.
Frequently asked questions
How much is the monthly payment on a ₱100,000 personal loan?
At a 1.5% monthly add-on rate over 24 months, ₱5,666.67 a
month, with ₱36,000.00 of total interest. Priced instead at 18% a
year on a diminishing balance, the same loan is ₱4,992.41 a month
and ₱19,817.84 of interest.
Why is my bank's quote different from this estimate?
Three usual reasons: the rate you were approved for is higher than the
advertised starting rate; there are fees and insurance charges this calculator
excludes; or the lender computes interest on a basis (add-on vs diminishing)
different from the one you selected. Ask for the total amount payable — that
single number is comparable across lenders.
Does paying early save me interest on an add-on loan?
Not automatically. Because the interest was fixed at the start on the full
principal, early settlement only helps if the lender rebates the unearned
interest. Ask what the pre-termination computation is before you assume a
short-term loan is cheap to exit.
Which is better, a bank loan or a lending app?
Banks generally quote lower rates and lend larger amounts, but want income
documents and days of processing. Apps approve in minutes at higher rates and
smaller amounts. Our best personal loans
comparison lays the two side by side.
Can I use this for a salary or company loan?
Yes — pick the method your employer or lender uses. An
SSS salary loan is a diminishing-balance
loan at 10% a year over 24 months, which is why it is usually far cheaper than
an add-on-priced loan of the same size.
Shopping around? Compare the best personal loans (banks vs apps). Buying a home instead? Use the home loan calculator. Looking to grow savings rather than borrow? See the compound interest calculator.
Last updated: 2026-07-08. Estimate only; excludes fees and penalties, which raise the real cost. Compare the effective interest rate, not just the monthly rate. Not financial advice.