Personal Loan Calculator: Monthly Payment & True Rate
Enter the loan offer and see your monthly payment, the total you pay back and the true interest rate after fees. Works for bank, cooperative and online personal loans, quoted as a monthly add-on rate or a yearly rate, and compares them with SSS, Pag-IBIG and a credit card.
PesoPilot is not a lender. Your loan disclosure statement is what counts; check the lender is SEC-registered.
True rate: 2.64% a month (31.68% a year) · it sounds like 18% a year, but add-on interest is charged on the full amount every month.
Fair for a bank or online loan. Check if an SSS or Pag-IBIG loan fits first: it costs less.
- SSS Salary Loan (8% a year): about ₱2,193 interest (₱4,349/month) · cheapest
- Pag-IBIG MPL (10.5% a year): about ₱2,889 interest (₱4,407/month)
- Credit card at the 3%/month cap: about ₱10,277 interest (₱5,023/month)
Add-on rates: what they really cost
Most personal loan ads quote a flat add-on rate a month. The interest is charged on the full amount every month, even as you pay it down, so the true rate is almost double. Here is ₱50,000 over 12 months:
| Quoted rate | Monthly payment | Total interest | True rate |
|---|---|---|---|
| 1% a month add-on | ₱4,667 | ₱6,000 | 1.79% a month (21.48% a year) |
| 1.5% a month add-on | ₱4,917 | ₱9,000 | 2.64% a month (31.68% a year) |
| 2% a month add-on | ₱5,167 | ₱12,000 | 3.48% a month (41.76% a year) |
| 3% a month add-on | ₱5,667 | ₱18,000 | 5.08% a month (60.96% a year) |
How to choose a personal loan
- Try the cheapest first. The SSS Salary Loan (8% a year) and the Pag-IBIG Multi-Purpose Loan (10.5% a year) cost far less than most bank or app loans. See yours in the SSS & Pag-IBIG calculator.
- Compare the true rate, not the ad. 2.64% a month is what 1.5% add-on really costs; a 3% fee pushes it to 3.15%.
- Get at least two quotes. Ask each lender for the disclosure statement: amount released, every fee, and the total to repay.
- Check the lender. SEC Certificate of Authority, and for apps the SEC list of online lending platforms. Our loan app legit check shows how.
- Fit it into your sweldo. Keep all loan payments well within your take-home pay; plan the payment in your budget until payday.
Frequently asked questions
How do I compute the monthly payment of a personal loan?
For an add-on (flat) rate: monthly payment = (loan + loan × monthly rate × months) ÷ months. ₱50,000 at 1.5% a month for 12 months is (₱50,000 + ₱9,000) ÷ 12 = ₱4,917 a month. For a rate per year on the diminishing balance, use the standard amortization formula; the calculator above does both.
Is 1.5% a month the same as 18% a year?
Not on an add-on loan. Add-on interest is charged on the full amount every month, even as you pay it down, so 1.5% a month add-on over 12 months works out to about 2.64% a month (31.68% a year) on what you actually owe. Always compare loans by the effective rate, not the quoted one.
Why does a processing fee make the loan more expensive?
When fees are taken out of the release you receive less cash but repay the full amount. On the same ₱50,000 loan, a 3% fee means you get ₱48,500, and the true rate rises to about 3.15% a month.
What is a good interest rate for a personal loan in the Philippines?
Cheapest are government loans: the SSS Salary Loan at 8% a year and the Pag-IBIG Multi-Purpose Loan at 10.5% a year on the diminishing balance. Credit cards are capped at 3% a month. A bank or online loan costing more than that effective rate is expensive; check if a cheaper option fits first.
What are the legal limits for online and small loans?
For small unsecured loans up to ₱10,000 payable in up to 4 months, lending and financing companies may charge at most 6% interest a month, at most 15% a month including fees, and a total cost of at most 100% of the amount borrowed (BSP Circular 1133, SEC MC 3 s.2022).
How do I know if a lender is legit?
Check that the company has an SEC Certificate of Authority as a lending or financing company and, for apps, that the app is on the SEC list of registered online lending platforms. Ask for the disclosure statement with the full cost before you sign, and never pay an "upfront fee" to get a loan released.
Educational estimate only. Add-on loans use the flat-rate formula; yearly rates use a level payment on the diminishing balance. The true rate is the effective monthly rate on the cash you receive. Lenders may add insurance, documentary stamp tax or late charges; confirm the total with the lender before you sign.
Save your payoff plan, log each payment, and watch the interest you save add up.
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