Car Loan Calculator
Compute your monthly car amortization from the vehicle price, down payment, term, and rate — including chattel mortgage, first-year insurance, and the true cost of the car.
Car Loan Calculator
Add-on and effective rates · Chattel mortgage & insurance included
20.0% of the price — most banks require at least 20%.
Dealer quotes are usually add-on rates; bank disclosures use the effective rate (EIR).
Typically 2–3% of the loan amount.
Typically 2.5–3.5% of the vehicle price per year.
How the car loan calculator works
This calculator mirrors how banks and dealers in the Philippines actually compute auto loans. You enter the vehicle price, your down payment, the term, and the interest rate, and it computes the monthly amortization, the total interest over the term, and the all-in cost of the car — including the chattel mortgage fee and the first year of comprehensive insurance that you pay upfront.
The most important setting is the rate type. Dealers almost always quote an add-on (flat) rate such as 5.99 percent per year. Under an add-on structure, interest is charged on the original loan amount for the entire term, even though you are paying the balance down every month. That makes the true effective interest rate roughly 1.8 to 1.9 times the quoted figure — a 6.5 percent add-on rate costs about the same as a 12 percent effective rate. Banks, on the other hand, disclose an effective interest rate (EIR) computed on the declining balance. This calculator accepts both and shows you the equivalent effective rate whenever you enter an add-on quote, so you can compare a dealer's offer against a bank's on equal footing.
Beyond the amortization, budget for the cash you need on day one. The down payment is typically at least 20 percent of the vehicle price. On top of that, lenders charge a chattel mortgage fee — usually 2 to 3 percent of the loan amount — to register the lien on the car, and you must pay the first year of comprehensive insurance, typically 2.5 to 3.5 percent of the vehicle price, before release. LTO registration and insurance renewals in later years are additional.
- Compare offers using the effective rate or the total cost of the car, never the quoted add-on rate alone — a lower add-on rate with a longer term can still cost more overall.
- A bigger down payment shrinks both the monthly amortization and the total interest, and often qualifies you for a better rate.
- Shorter terms cost less in total: a 36-month loan at the same rate can save you tens of thousands in interest versus 60 months.
- Ask whether the chattel mortgage fee, insurance, and LTO registration are financed into the loan or paid in cash — financing them raises your principal and your interest.