Monthly amortization, total interest, and total cost of a personal loan.
Monthly payment
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Total interest
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Documentary stamp tax
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Total cost
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Borrow 300,000 pesos at 18% a year over 24 months, with the 0.75% documentary stamp tax included. The
monthly rate is 18% divided by 12, or 1.5%. The amortization formula gives a fixed monthly payment of about
14,977 pesos. Across 24 payments you repay roughly 359,454, so the interest is about 59,454. The stamp tax
is 0.75% of the 300,000 principal, which is 2,250, charged once upfront. Adding it brings the total cost to
about 361,704. Notice that a headline 18% rate produces interest closer to 20% of the amount borrowed over
two years, and the stamp tax and any processing fee push the real cost higher than the quoted rate alone
suggests.
Item
Amount (PHP)
Loan amount
₱300,000
Monthly payment
₱14,977
Total interest
₱59,454
Documentary stamp tax
₱2,250
Total cost
₱361,704
How it is calculated
The monthly payment uses the standard amortizing formula, which holds every payment equal across the term
while the split between interest and principal shifts. Each month interest accrues on the outstanding
balance at the monthly rate, the annual rate divided by twelve, and the rest of the payment reduces the
principal. Early payments are mostly interest and later ones mostly principal. Total interest is the sum of
all payments less the amount borrowed. The optional documentary stamp tax is a one-time 0.75% of the
principal, a real charge on Philippine loan agreements that the lender usually passes to the borrower at
release. Total cost adds that stamp tax to the sum of payments. The calculator does not model processing
fees, insurance, or late-payment penalties, which vary by lender and would raise the effective rate above
the figure shown here.
Frequently asked questions
How is a personal loan monthly payment calculated?
The monthly payment uses the standard amortization formula, which spreads the principal and interest evenly across the term so every payment is the same. Early payments are mostly interest and later ones mostly principal. Banks may also add a one-time documentary stamp tax of 0.75% of the principal and processing fees, which raise the real cost above the headline interest rate.
What is the documentary stamp tax on a Philippine personal loan?
The BIR imposes a documentary stamp tax of 0.75 percent of the loan principal on loan agreements, collected once at release. On a PHP 300,000 loan that is PHP 2,250, which the lender usually passes to the borrower. It is a relatively small upfront cost but adds to the effective interest rate, especially on short-term loans where the interest itself is modest.
Is a shorter or longer loan term better for a personal loan?
A shorter term means higher monthly payments but less total interest paid overall, while a longer term lowers the monthly burden but inflates the lifetime cost significantly. For a PHP 300,000 loan at 18 percent, cutting from 36 months to 24 months saves roughly PHP 30,000 in interest. Choose the term based on what your monthly budget can absorb without strain, then try to prepay when cash allows.
How does the annual interest rate on a Philippine personal loan compare to the effective rate?
The quoted annual rate understates the true cost because interest compounds monthly and additional charges like the documentary stamp tax and processing fees sit on top. A loan at 18 percent per year with the DST and fees included can carry an effective annual rate closer to 20 to 22 percent on a two-year term. Always compute the total cost, not just the monthly payment, before committing to a loan.