How is a Philippine personal loan payment calculated?

It uses the standard amortising formula M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of months. Each payment covers interest first, with the remainder reducing the balance.

What interest rates are typical in the Philippines?

BSP-regulated banks and lending companies typically charge 14% to 40% effective per annum on unsecured personal loans, depending on amount, term and credit profile. Some lenders advertise a low add-on rate that translates to a much higher effective rate.

What is the difference between add-on and effective rate?

An add-on rate applies interest to the full original principal for the whole term, so the effective (reducing-balance) rate you actually pay is roughly double. This calculator uses the effective reducing-balance method, so enter the effective annual rate for accuracy.

Are there other fees on Philippine loans?

Yes. Lenders commonly charge a one-time processing or disbursement fee, documentary stamp tax, and late-payment penalties. These are not included here, so your total cost of credit may be higher than the interest shown.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so your details stay private.

Philippines Personal Loan Calculator

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This Philippines personal loan calculator models a standard amortising peso loan from a bank or BSP-regulated lending company. Enter how much you want to borrow, the annual interest rate and the term in months, and it returns your fixed monthly payment, the total interest, and a full repayment schedule.

How it works

Each monthly payment is a fixed amount under the standard annuity formula:

M = P · r (1 + r)ⁿ / ((1 + r)ⁿ − 1)

where P is the loan principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Early payments are mostly interest; later ones are mostly principal. The schedule below shows the interest-versus-principal split month by month.

Example

Borrow PHP 100,000 at 24% per annum over 24 months. The monthly rate is 24 ÷ 12 = 2%. The formula gives a fixed payment of roughly PHP 5,290, and total interest over the term comes to around PHP 27,000.

Notes

This models the nominal interest cost using the reducing-balance method. Watch for lenders quoting a low add-on rate — that applies interest to the original principal for the whole term, so the true effective rate is roughly double. Processing fees, documentary stamp tax and late penalties (which feed into the legally-required disclosed effective interest rate) are not included here, so check the lender’s full disclosure statement before signing.