Loan Calculator Peso
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Reviewed by Calculator Editorial Team
This loan calculator helps you determine monthly payments, total interest, and loan amortization schedule for loans denominated in Philippine Peso (PHP). Whether you're planning a home purchase, car loan, or personal financing, this tool provides clear calculations to help you make informed financial decisions.
How to Use This Loan Calculator
Using our loan calculator is simple:
- Enter the loan amount in Philippine Peso (PHP)
- Specify the loan term in years
- Input the annual interest rate (APR)
- Click "Calculate" to see your monthly payment and other details
The calculator will display your monthly payment, total interest paid, and total amount repaid. You can also view an amortization schedule chart showing how your loan balance decreases over time.
Formula Used
The monthly payment is calculated using the standard loan 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 × 12)
Total interest paid is calculated by subtracting the principal from the total amount repaid.
Worked Example
Let's calculate a loan with these parameters:
- Loan amount: PHP 5,000,000
- Loan term: 20 years
- Annual interest rate: 5.5%
Using the formula:
Monthly interest rate = 5.5% ÷ 12 = 0.4583%
Number of payments = 20 × 12 = 240
Monthly payment = 5,000,000 [ 0.004583(1 + 0.004583)240 ] / [ (1 + 0.004583)240 - 1 ]
Monthly payment ≈ PHP 30,450.75
Total amount repaid = 30,450.75 × 240 ≈ PHP 7,308,180
Total interest = 7,308,180 - 5,000,000 = PHP 2,308,180
This example shows that for a PHP 5,000,000 loan at 5.5% interest over 20 years, you would pay approximately PHP 30,450.75 per month with a total interest of PHP 2,308,180.
Frequently Asked Questions
What is the difference between APR and APY?
APR (Annual Percentage Rate) is the simple annual interest rate, while APY (Annual Percentage Yield) includes the effect of compounding interest. APY is generally higher than APR for the same loan.
How does loan term affect monthly payments?
A longer loan term means lower monthly payments but higher total interest paid. A shorter term results in higher monthly payments but lower total interest.
What is the difference between fixed and variable interest rates?
Fixed rates remain constant throughout the loan term, while variable rates can change based on market conditions. Fixed rates offer predictability while variable rates may offer lower initial rates.