Loan Amortization Calculator Philippines

How to use this calculator

Enter the loan amount you want to borrow.
Type the interest rate per year and the term in months.
Choose diminishing balance or flat rate. Check your loan offer to see which one the lender uses.
Add any processing fee percentage and other upfront fees so you can see your net proceeds.
Read the monthly payment, total interest and total cost of borrowing, and scroll the schedule to see how each payment is split.

How does loan amortization work?

Amortization means paying a loan in equal installments over time. With a diminishing balance loan, interest is charged on what you still owe, so each payment covers a bit less interest and a bit more principal as time goes on. With a flat rate loan, interest is charged on the full original amount for the whole term, which usually costs more.

Fees matter too. A processing fee and other upfront charges reduce the cash you actually receive, so a loan that looks cheap can still be expensive. This calculator shows your net proceeds and the total cost of borrowing so you can compare offers fairly.

Comparing lenders? Read our personal loan calculator guide and personal loan comparison, or check LoanOnline offers.

How the loan numbers are worked out

Diminishing balance: each month you pay the same amount, but interest is charged only on the balance you still owe, so the interest part shrinks over time.
Flat rate: interest is the loan amount times the yearly rate times the years, added up front and divided evenly across the months. It usually costs more than it looks.
Fees: a processing fee and other upfront fees reduce the cash you receive, which is shown as your net proceeds.
Always compare loans by total cost, not only the monthly payment, and read the lender terms for penalties and rounding.

Tips to save more

Compare loans by total cost, not by monthly payment alone.
Ask whether the rate is flat or diminishing before you sign.
Choose the shortest term you can afford to cut total interest.
Avoid borrowing for wants when a savings plan can reach the goal in a few months.

Frequently asked questions

How is a monthly loan payment computed?

For a diminishing balance loan, the payment is the loan amount times the monthly rate divided by one minus the monthly rate plus one, raised to the negative number of months. The calculator does this for you and lists the schedule.

What is the difference between flat and diminishing rates?

A flat rate applies interest to the original amount for the whole term, while a diminishing rate applies it to the remaining balance. A 1% flat monthly rate is much more expensive than a 1% diminishing monthly rate.

Why is my net proceeds lower than the loan amount?

Lenders often deduct a processing fee and other charges upfront. The calculator subtracts them so you can see the cash you will actually receive.

Can I use this for SSS, Pag-IBIG, bank or app loans?

Yes for estimating. Enter the loan amount, rate, term and fees from your offer. Official programs and lenders can differ in how they compute interest and charges, so confirm with the lender.

How do I borrow less overall?

Choose the shortest term you can afford, compare total cost across lenders, and avoid fees where possible. Reading our loan comparison guides helps you spot the cheaper offer.

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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.