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Loan Amortization Calculator

Calculate your monthly loan payment, total interest, and amortization schedule for personal, business, or auto loans in the Philippines.

Your details

The total amount of money you are borrowing, in Philippine Pesos (PHP).

The yearly interest rate for the loan. Enter the numerical value for the percentage (e.g., 5 for 5%, 7.5 for 7.5%).

The total duration of the loan.

How often you will make payments.

Result

Payment per Period ₱16,030.36

The fixed amount you need to pay each period (e.g., monthly).

How it is calculated

Total Number of Payments The total number of payments you will make over the life of the loan.
60
Interest Rate per Payment Period The interest rate applied to each payment period.
0.62 %
Total Amount Paid The sum of all payments (principal + interest).
₱961,821.60
Total Interest Paid The total cost of borrowing the money.
₱161,821.60
Keep in mind
  • This calculator assumes a standard amortizing loan with fixed periodic payments and a fixed interest rate. It does not account for fees, insurance, or potential changes in interest rates.
  • For loans with compound interest or other complex structures, consult your loan agreement or a financial advisor. The results are estimates for informational purposes.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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Loan Agreement
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Loan Amortization Calculator for the Philippines

Taking out a loan is a significant financial commitment. Whether it's for a new car, home renovation, business expansion, or personal needs, understanding exactly how much you'll pay each month and over the life of the loan is crucial. Our Loan Amortization Calculator helps you do just that. It provides a clear breakdown of your periodic payment, total interest cost, and the total number of payments based on the loan amount, interest rate, and term you specify.

How Loan Amortization Works

An amortizing loan is repaid through regular, fixed payments. Each payment covers two parts: the interest charge for the period and a portion of the principal (the original loan amount). Early in the loan term, a larger portion of your payment goes toward interest. As the principal balance decreases over time, the interest portion of each payment shrinks, and more of your payment goes toward paying down the principal. This process is called amortization.

How to Use the Calculator

You only need four pieces of information:

  • Loan Amount (Principal): The total sum you are borrowing, in Philippine Pesos (PHP).
  • Annual Interest Rate: The yearly interest rate charged by the lender, expressed as a percentage (e.g., 5.25%).
  • Loan Term: The total duration of the loan in years.
  • Payment Frequency: How often you make payments—monthly, quarterly, semi-annually, or annually.

The calculator will instantly compute your fixed payment per period, the total number of payments, and the total interest you will pay.

A Worked Example

Let's say you take out a PHP 1,000,000 personal loan with a 6% annual interest rate, to be repaid monthly over 5 years.

  • Payments per year: 12 (monthly)
  • Total payments: 5 years * 12 = 60 payments
  • Interest rate per month: 6% / 12 = 0.5%
  • Monthly Payment: Using the standard loan payment formula, the fixed monthly amount would be approximately PHP 19,332.80.
  • Total Amount Paid: PHP 19,332.80 * 60 = PHP 1,159,968.00
  • Total Interest Paid: PHP 1,159,968.00 - PHP 1,000,000 = PHP 159,968.00

This shows that over 5 years, you would pay PHP 159,968 in interest on top of the PHP 1,000,000 principal.

Common Loan Types in the Philippines

This calculator can be used for various loan structures prevalent in the Philippines:

  • Personal Loans: Often unsecured, with terms from 1 to 5 years.
  • Auto Loans: Secured by the vehicle, with terms typically ranging from 3 to 7 years.
  • Business Loans: Can be short-term or long-term, with payment schedules sometimes on a quarterly basis.
  • Home Renovation Loans: Similar to personal loans, often offered by banks and financing companies.

Next Steps: Formalize Your Loan Agreement

Once you've calculated your loan terms, it's wise to formalize the agreement in writing to protect both the lender and the borrower. A written contract clarifies all terms and helps prevent future disputes. We recommend using our Loan Agreement or Promissory Note template to document the loan amount, interest rate, payment schedule, and other essential conditions legally.

Frequently asked questions

What is an amortization schedule?

An amortization schedule is a table that shows the breakdown of each loan payment into principal and interest. It also shows the remaining loan balance after each payment. While this calculator gives you the summary figures, a full schedule shows the progression of your loan payoff over time.

Does this calculator work for housing loans (mortgages)?

Yes, the basic calculation for a fixed-rate mortgage uses the same formula. However, mortgages often have additional fees (insurance, taxes) and sometimes variable interest rates, which this calculator does not include. Use it for a good estimate of the principal and interest portion.

What's the difference between simple and compound interest?

Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus any accumulated interest. Most standard installment loans (like personal, auto, or home loans) use the amortization method shown here, which is a form of compound interest calculation applied per payment period.

What if I make extra payments?

Making extra payments directly toward the principal will reduce the total interest paid and can shorten the loan term. This calculator shows the standard schedule without extra payments. To see the impact of extra payments, you would need a more advanced calculator.

Is the interest rate per annum (p.a.)?

Yes, you should enter the annual interest rate (per annum). The calculator automatically converts it to the rate per payment period (e.g., divides by 12 for monthly payments).

Why are my first payments mostly interest?

This is how amortization works. Since your loan balance is highest at the start, the interest charged on that large balance is also high. As you pay down the principal, the interest portion of each payment naturally decreases.

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