Skip to content
PinasKwenta
Menu
Loans and finance

Personal Loan Calculator

Your monthly payment and the real interest rate behind a loan offer.

Your numbers

Sample numbers are filled in. Tap a box and type yours.

How much you’re borrowing
In months. 12 months = 1 year.
Exactly as quoted: 1.5 for 1.5% a month, or 12 for 12% a year
Processing or service fees deducted before you get the cash

Results update as you type. Calculate takes you to your result.

Loan summary

Monthly payment₱9,833.33For 12 months. You repay ₱118,000.00 in total, ₱18,000.00 of it interest.

Monthly payment
₱9,833.33
Total interest
₱18,000.00
Total you repay
₱118,000.00
Cash you receive
₱98,000.00
Effective interest rate (EIR)
Per month
2.98%
Per year
35.76%

An estimate from the numbers you enter. How it’s computed · Change your numbers

Monthly payment₱9,833.33

How to use this calculator

  1. Enter the amount and term.
  2. Pick the rate type from your disclosure statement. “1.5% a month” is usually add-on; a bank’s “12% a year” is usually diminishing balance.
  3. Add fees taken from your proceeds: processing fee, service charge, documentary stamps.

How it’s computed

Add-on rate: total interest = loan amount × monthly rate × months. Monthly payment = (loan amount + total interest) ÷ months.

Diminishing balance: monthly payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r the annual rate ÷ 12, and n the months.

Effective rate: we solve for the monthly rate at which the cash you receive equals the present value of your payments, then multiply by 12 for the yearly figure.

Example

A lender offers ₱100,000.00 at 1.5% a month add-on for 12 months, with a ₱2,000.00 processing fee.

  • Interest: ₱100,000.00 × 1.5% × 12 = ₱18,000.00.
  • Monthly payment: ₱118,000.00 ÷ 12 = ₱9,833.33.
  • You receive ₱98,000.00, so the effective rate is 35.76% a year, not 18%.
  • For comparison, a true 18% diminishing-balance loan costs ₱10,015.99 in interest, ₱7,984.01 less.

Frequently asked questions

What is an add-on rate?

An add-on (flat) rate charges interest on the full loan amount for every month of the term, even though you pay down the balance monthly. Many personal, salary and appliance loans in the Philippines are quoted this way.

What is the effective interest rate (EIR)?

The rate that, applied to your declining balance, produces the same payments, counting fees deducted from what you receive. Bangko Sentral rules require lenders to disclose it, so compare EIRs, not quoted rates, when shopping for loans.

Should I include processing fees?

Yes. Processing fees, service charges, and documentary stamp tax deducted upfront mean you receive less cash but repay the full amount, which raises your effective rate.

Can I pay off the loan early?

Usually yes, but check for a pre-termination fee. With add-on loans, ask whether unearned interest is rebated; if it isn’t, paying early saves less than you might expect.

This calculator provides estimates for informational purposes only. Actual payroll, taxes, contributions, loan charges, and utility costs may vary depending on your employer, provider, government rules, or specific circumstances.

You may also need

Read the guide