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Loan amortization calculator.
Type the loan amount, the interest rate, the term and how interest is charged. Get the monthly payment, the total interest, the true yearly cost and the schedule.
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Loan amortization calculator
Monthly payment
₱8,884.88
On a ₱100,000 loan at 12% a year on the diminishing balance for 12 months, the monthly payment is ₱8,884.88, the total interest is ₱6,618.53 and the effective annual rate is 12.68%.
| Monthly payment | ₱8,884.88 |
|---|---|
| Total interest | ₱6,618.53 |
| Total of payments | ₱106,618.53 |
| Service fee | ₱0.00 |
|---|---|
| Cash you receive | ₱100,000.00 |
| Finance charge (interest + fee) | ₱6,618.53 |
| Effective annual rate | 12.68% |
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | ₱8,884.88 | ₱1,000.00 | ₱7,884.88 | ₱92,115.12 |
| 2 | ₱8,884.88 | ₱921.15 | ₱7,963.73 | ₱84,151.39 |
| 3 | ₱8,884.88 | ₱841.51 | ₱8,043.37 | ₱76,108.02 |
| 4 | ₱8,884.88 | ₱761.08 | ₱8,123.80 | ₱67,984.22 |
| 5 | ₱8,884.88 | ₱679.84 | ₱8,205.04 | ₱59,779.18 |
| 6 | ₱8,884.88 | ₱597.79 | ₱8,287.09 | ₱51,492.09 |
| 7 | ₱8,884.88 | ₱514.92 | ₱8,369.96 | ₱43,122.13 |
| 8 | ₱8,884.88 | ₱431.22 | ₱8,453.66 | ₱34,668.47 |
| 9 | ₱8,884.88 | ₱346.68 | ₱8,538.20 | ₱26,130.27 |
| 10 | ₱8,884.88 | ₱261.30 | ₱8,623.58 | ₱17,506.69 |
| 11 | ₱8,884.88 | ₱175.07 | ₱8,709.81 | ₱8,796.88 |
| 12 | ₱8,884.85 | ₱87.97 | ₱8,796.88 | ₱0.00 |
How it was worked out
- Monthly rate. 12% a year ÷ 12 = 1% a month, charged each month on the balance still owed.
- Monthly payment. The level payment that clears ₱100,000.00 in 12 months at 1% a month is ₱100,000.00 × 0.010000 ÷ (1 − (1 + 0.010000)^−12) = ₱8,884.88.
- Total interest. 12 payments come to ₱106,618.53, of which ₱6,618.53 is interest.
- Effective annual rate. The monthly rate at which 12 payments of ₱8,884.88 repay ₱100,000.00 is 1%; compounded over 12 months that is 12.68% a year. (Republic Act No. 3765, the Truth in Lending Act: disclosure of finance charges)
- Documentary stamp tax, insurance and other charges are left out. Ask the lender for its disclosure statement, which must list every finance charge.
Rates and rules as of November 8, 2026. A guide, not legal or tax advice.
Questions
Asked and answered.
What is the difference between add-on and diminishing balance interest?
Add-on interest is charged on the full loan for the whole term, even as you pay it down. Diminishing balance interest is charged only on what you still owe, so the same quoted rate costs much less.
How is the monthly amortization of a loan computed?
On a diminishing balance, the payment is principal × r ÷ (1 − (1 + r)^−n), where r is the annual rate ÷ 12 and n the number of months. On an add-on loan, it is (principal + principal × rate × years) ÷ months.
What is the effective interest rate of a loan?
It is the true yearly cost once the payment schedule and any fees deducted from the loan are counted. A 12% add-on loan for a year costs about 23.7% a year effectively.
Must a lender disclose the finance charges?
Yes. Under the Truth in Lending Act, a lender must give a written statement of the amount financed, the finance charges and the effective rate before the loan is made.
From PesoCore
This is one figure PesoCore works out for you.
PesoCore is Tekhx's ready-made lending system for Philippine businesses. It does this, and everything around it, for every record, every day.