Car Loan Calculator — Philippines
Estimate your monthly car-loan amortization in pesos using current bank rates. See total interest over the term. No signup, no tracking.
Current rates (≈ 2026 — BSP policy ≈5%; verify with your lender)
| Lender / type | Typical rate | Notes |
|---|---|---|
| BPI | 8–11% | Add-on & effective options |
| BDO | 8–12% | Largest bank network |
| Metrobank | 8–12% | New & used |
| Security Bank | 9–12% | Fast approval |
| Toyota Financial | Promo–12% | Captive financing |
Major lenders
- BPI — competitive new-car financing, add-on and effective-rate options
- BDO — largest network; new and used car loans
- Metrobank — flexible tenures and brand promos
- Security Bank — fast approval, salary-based eligibility
- Toyota Financial Services — captive financing with periodic 0%/low-rate promos
The real cost — a worked example
Example: ₱1,200,000 car, 20% down (₱240,000), financing ₱960,000 at 10% for 5 years
- Monthly payment: ₱20,397
- Total paid over 5 years: ₱1,223,830
- Total interest: ₱263,830
Add-on rate vs effective rate
- Philippine dealers often quote an add-on rate (interest on the full amount for the whole term). The effective rate is roughly 1.8× higher — this calculator uses the effective basis so the amortization is realistic.
- New cars need a minimum 20% down payment; used cars typically 30%.
- The BSP caps digital/short-term lenders' rates, but bank auto loans price on credit profile and tenor.
Frequently Asked Questions
How is car loan amortization calculated in the Philippines?
Banks use the reducing-balance (effective) formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). Dealers may quote a lower-looking add-on rate; convert it to the effective rate to compare offers fairly.
What is the current car loan rate in the Philippines?
Roughly 8–12% effective per year in 2026 at BPI, BDO, Metrobank and Security Bank, depending on term and profile. Captive lenders like Toyota Financial run periodic low-rate promos.
What down payment do I need for a car?
Typically a minimum 20% for new cars and around 30% for used. A larger down payment lowers your monthly amortization and total interest.
Add-on rate vs effective rate — what's the catch?
An add-on rate charges interest on the original amount for the entire term, so a '5% add-on' can be ~9% effective. Always ask for the effective rate or the total amount payable to compare loans.
Can I pay off my car loan early?
Yes, though some banks charge a pre-termination fee. Prepaying still usually saves interest — ask for the exact payoff amount and any penalty before deciding.