Car Loan Calculator Philippines

How to use this calculator

Enter the car price and your down payment as a percent.
Type the interest rate and the loan term in months from your quote.
Choose whether the rate is a flat add-on rate or a diminishing balance rate.
Add upfront fees and yearly insurance if you know them.
Read the monthly payment, the total interest and the real yearly rate, then compare other offers.

How to compare car loan offers in the Philippines

Car dealers often advertise a low monthly add-on rate that sounds cheaper than a bank rate. The two are not comparable. A flat rate keeps charging interest on the original amount while you pay it down, so the cost is far higher than the number suggests.

This calculator converts any quote into a real yearly rate so you can put a dealer offer next to a bank offer. It also shows total interest and the extra you pay over the cash price.

Estimate the running cost with the fuel cost calculator, compare car insurance and read our car maintenance tips.

How the car loan estimate works

Amount financed is the car price minus your down payment.
With a flat rate, interest equals the amount financed times the rate times the years, and the payment is the total divided by the months.
With a diminishing balance rate, interest is charged only on what you still owe, using the standard amortization formula.
The real yearly rate is the diminishing balance rate that gives the same monthly payment, so you can compare any two offers.

Tips to save more

Compare offers by the real yearly rate, not by the advertised monthly rate.
A bigger down payment or a shorter term can cut interest sharply.
Shop insurance separately instead of accepting the first package.
Add fuel, parking and maintenance to the monthly payment before you decide.

Frequently asked questions

What is the difference between a flat rate and a diminishing rate?

A flat rate charges interest on the full amount for the whole term, even as you pay it down. A diminishing rate charges interest only on the balance you still owe, so the same number costs much less.

Why is the real rate higher than the quoted rate?

Because a flat rate keeps charging on money you have already repaid. The real yearly rate shown here converts the quote to a diminishing balance equivalent.

How big should my down payment be?

A larger down payment lowers the loan, the interest and the monthly payment. Many buyers put down 20 percent or more, but lenders and promos vary.

What other costs come with owning a car?

Insurance, registration, fuel, parking and maintenance. Add these to the monthly payment to see the real monthly cost.

Can I pay the loan early?

Some lenders charge a prepayment fee. Ask for the terms before you sign.

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This calculator gives estimates for planning only. It is not financial, tax or legal advice. Confirm exact figures with your employer, bank, lender or the relevant government agency.