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 account needed.
Enter a car price, a down payment of 0–90%, a rate between 0% and 100%, and a term above zero to see results.
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.
A real-data rate check: car loan financing in Philippines (2026)
Philippine auto loans are almost always quoted as a flat "add-on rate" per annum rather than a reducing-balance (effective) rate, and the two numbers look very different for the same loan. As of June 5, 2026, Metrobank's published car loan add-on rates range from 5.19% add-on for a 12-month term up to 30.26% add-on for a 60-month term, with the bank's own "effective rate" column running roughly 9.45%-10.93%. BPI's auto loan page for brand-new passenger cars lists add-on rates from 5.43% (12 months) to 31.01% (60 months), with second-hand car add-on rates running noticeably higher, from 7.89% (12 months) to 44.32% (60 months).
The add-on rate is not the true cost of borrowing — it is multiplied by the loan term in years and simply spread evenly across the months, without accounting for the shrinking balance as you pay it down. To see the real cost, we hand-verified one example using the standard amortizing-loan formula M = P·r·(1+r)^n / ((1+r)^n − 1), where P is principal, r is the monthly interest rate, and n is the number of monthly payments.
A more realistic example: take a ₱800,000 loan at Metrobank's 36-month add-on rate of 16.90%. Under the add-on method, total interest = ₱800,000 × 16.90% × 3 years = ₱405,600, for a total payable of ₱1,205,600 and a monthly installment of ₱33,489. Solving the reducing-balance formula above for the monthly rate r that produces that same ₱33,489 payment on ₱800,000 over 36 months gives r ≈ 2.41% per month, which compounds to an effective annual rate of about 33.1% — roughly double the quoted 16.90% add-on figure.
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.
Why is a Philippine bank's advertised car loan "add-on rate" so much lower than the interest rate on my other loans?
Because it's calculated differently. Add-on rate is applied once to the original loan amount for the full term and then spread evenly across the monthly payments, ignoring the fact that your outstanding balance shrinks every month. A 16.90% add-on rate over 3 years can translate to an effective annual rate of roughly 33%, once converted to the reducing-balance basis used for effective/APR interest rates on most other loan types.
How do I convert a Philippine car loan's add-on rate into a monthly payment I can compare across banks?
Multiply the add-on rate by the loan principal and by the loan term in years to get total interest, add that to the principal for the total payable amount, then divide by the number of months to get the flat monthly installment. To find the true effective rate for comparison purposes, solve the standard amortization formula M = P·r·(1+r)^n / ((1+r)^n − 1) for r using that same monthly payment; the effective annual rate is typically well above the quoted add-on percentage, especially on longer terms.
Related calculators
Sources
Metrobank (accessed June 5, 2026): Home and Car Loans Rates and Fees. BPI (2026): Auto Loan for Passenger Car rates. See our methodology and editorial policy for how we source and update this data.