Auto Loan Calculator Philippines
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Reviewed by Calculator Editorial Team
Calculating your auto loan payments in the Philippines can help you make informed financial decisions. This calculator helps you determine your monthly payments, total interest, and loan terms based on the loan amount, interest rate, and loan term you choose.
How to Use the Auto Loan Calculator
Using the auto loan calculator is simple. Follow these steps:
- Enter the loan amount you want to borrow in the "Loan Amount" field.
- Enter the annual interest rate offered by the lender in the "Interest Rate" field.
- Select the loan term (in years) from the dropdown menu.
- Click the "Calculate" button to see your monthly payment, total interest, and total repayment amount.
- Review the results and adjust your inputs as needed.
The calculator will display your monthly payment, total interest paid over the life of the loan, and the total amount you'll repay, including principal and interest.
Formula Used
The auto loan calculator uses the standard loan payment formula to calculate your monthly payments:
Monthly Payment Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where:
- M = Monthly payment
- P = Principal loan amount
- i = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years multiplied by 12)
This formula calculates the fixed monthly payment required to pay off a loan with a fixed interest rate over a specified period.
Worked Example
Let's say you want to borrow ₱500,000 at an annual interest rate of 8% for 5 years. Here's how the calculation works:
- Principal (P) = ₱500,000
- Annual interest rate = 8% or 0.08
- Monthly interest rate (i) = 0.08 / 12 ≈ 0.0066667
- Loan term in months (n) = 5 years × 12 = 60 months
Plugging these values into the formula:
Calculation
M = ₱500,000 [ 0.0066667(1 + 0.0066667)^60 ] / [ (1 + 0.0066667)^60 - 1 ]
M ≈ ₱500,000 [ 0.0066667 × 1.4494 ] / [ 1.4494 - 1 ]
M ≈ ₱500,000 [ 0.009329 ] / 0.4494
M ≈ ₱500,000 × 0.02074 / 0.4494
M ≈ ₱21,425.45
Your monthly payment would be approximately ₱21,425.45. The total interest paid over 5 years would be ₱21,425.45 × 60 - ₱500,000 ≈ ₱116,672.70.
Frequently Asked Questions
The calculator provides an estimate based on the inputs you provide. For precise figures, consult with your lender or financial advisor.
Yes, you can adjust the loan term to see how different repayment periods affect your monthly payments and total interest.
This calculator shows the standard monthly payment. If you pay extra, your loan will be paid off faster, but you'll pay less interest overall.
This calculator assumes a fixed interest rate. If your loan has a variable rate, consult with your lender for more accurate projections.