Personal Loan Calculator
Estimate your repayments by month, fortnight, or week. Reveal the full amortization schedule and see the true total cost of borrowing.
Personal Loan Calculator
Amortizing loan · Add-on rates not applied
Use the nominal annual rate (APR), not the monthly add-on rate.
How to read your personal loan numbers
This calculator amortizes your loan on a declining balance: each payment covers the interest accrued for the period first, and whatever is left reduces the principal. That is why early payments are interest-heavy and later payments are almost entirely principal, which you can see period by period in the amortization schedule.
The biggest trap in Philippine personal lending is the add-on rate. Many banks and lending apps advertise a monthly rate such as 1.5 percent computed on the original principal for the whole term, even though your balance is shrinking every month. That structure makes the true effective interest rate roughly 1.8 to 2 times the advertised figure. Ask any lender for the disclosed effective interest rate — they are required to provide it — and enter that number here to compare offers fairly.
Switching to fortnightly or weekly payments shortens the average time your balance sits outstanding, so total interest falls slightly even at the same nominal rate. The trade-off is cash-flow discipline: you need money set aside on every pay cycle, not just once a month.
- Compare offers using total cost of the loan, not the monthly payment — a longer term always looks cheaper per month while costing more overall.
- Include processing or disbursement fees: a 3 to 5 percent upfront fee raises your real borrowing cost even when the quoted rate looks low.
- Check the pre-termination policy before signing; some lenders charge a penalty that erases the savings from paying early.
- If the loan is meant to consolidate credit card balances, compare the loan rate with your card's effective monthly rate first.
Frequently asked questions
What is the difference between an add-on rate and an effective interest rate?
An add-on rate charges interest on the full original principal for the entire term, ignoring the fact that you are paying the balance down. An effective interest rate reflects what you actually pay on the declining balance. A 1.5 percent monthly add-on rate typically works out to an effective rate of roughly 30 to 36 percent per year.
Is a personal loan cheaper than a credit card cash advance?
Usually yes. Cash advances typically carry a fee plus interest that begins accruing immediately at card rates, with no grace period. A personal loan has a fixed schedule and a lower effective rate for most borrowers, but you should still compare using effective rates and total cost.
How much can I borrow?
Most Philippine lenders cap unsecured personal loans at around two to four times your monthly income, subject to your existing obligations. Your total monthly debt payments generally need to stay under roughly 30 to 40 percent of gross income for approval.
Will paying weekly or fortnightly save me money?
Slightly, yes — more frequent payments reduce the average outstanding balance, so less interest accrues. The saving is modest compared with negotiating a lower rate or a shorter term, so treat frequency as a cash-flow choice first.