Investment Calculator — Philippines
See how a monthly investment grows over time at the Philippines' historical equity returns. No signup, no account needed.
Enter a monthly amount, a return rate between 0% and 100%, and a duration above zero to see results.
Expected long-term returns
| Asset | Long-term return | Notes |
|---|---|---|
| PSEi equity / index funds | ≈ 8–10% p.a. | Long-term historical average |
| Balanced funds | ≈ 6–8% | Lower volatility |
| Pag-IBIG MP2 | ≈ 6–7% (dividend) | Gov't savings, tax-free |
| Time deposits | ≈ 4–5.5% | Capital-safe |
Returns are historical averages, not guarantees. Markets fall as well as rise; invest for the long term and diversify.
Where to invest
- COL Financial — popular broker for stocks and index funds, peso-cost averaging
- GInvest (GCash) — low-barrier mutual funds inside GCash
- BPI Trade / BDO — bank-backed UITFs and brokerage
- Pag-IBIG MP2 — government voluntary savings, tax-free dividends, 5-year term
Worked example — the power of compounding
Example: ₱5,000/month for 15 years at 9% p.a.
- Future value: ₱1,906,219
- Total invested: ₱900,000
- Estimated gains from compounding: ₱1,006,219
That's roughly 2.1× your money — most of it from compounding, not contributions. Starting earlier matters more than investing more.
Tips for investing monthly in the Philippines
- Peso-cost averaging — invest the same amount monthly regardless of price — smooths volatility.
- Pag-IBIG MP2 is a popular low-risk, tax-free complement to equity funds.
- Apps like GInvest let you start from as little as ₱50.
A real-data rate check: long-term investment returns in Philippines (2026)
Before you pick a default annual return for a monthly (peso-cost-averaging) investment plan, it helps to look at what Philippine equities have actually delivered. According to yearly return data for the PSE Composite Index (PSEi), the index closed 2015 at 6,952.08 and 2024 at 6,528.79 — a price-only compound annual growth rate of roughly -0.7% per year over that 9-year stretch, with sharply uneven individual years (+25.11% in 2017, -12.76% in 2018, -10.47% in 2022, +1.22% in 2024).
Named PSEi-tracking funds confirm this weak recent stretch. The BPI Philippine Stock Index Fund, Corp. (Unitized) fund fact sheet dated March 31, 2025 reports an annualized 1-year return of -8.82% and a 3-year annualized return of -3.61%, tracking the PSEi with a low 0.37% tracking error. Given this, we treat aggressive assumptions (10-12% a year) as unrealistic defaults for a PSEi-linked plan today, and instead default this calculator to a more conservative 6% annual return.
A more realistic example: contributing ₱5,000 every month for 10 years (120 months) at a 6% annual return, using FV = P × [((1+r)^n − 1)/r] × (1+r): total contributions equal ₱600,000, and the future value comes to approximately ₱823,494 — about ₱223,494 in investment growth. That is far smaller than what a 10-12% assumption would project, and it's grounded in the PSEi's actual 2015-2024 track record.
Tax treatment changed in 2025 in a way that favors this kind of recurring fund investing. Under the Capital Markets Efficiency Promotion Act (Republic Act No. 12214, effective July 1, 2025), gains from redeeming mutual fund shares or UITF units are excluded from gross income (no capital gains tax) and exempt from documentary stamp tax, with no minimum holding period. The same law imposed a flat 20% final withholding tax on all bank deposit interest, regardless of term — removing a long-standing long-term-deposit tax break, which makes recurring fund investing comparatively more tax-efficient than a time deposit for an equivalent nominal return.
Frequently Asked Questions
How does monthly investing work in the Philippines?
You invest a fixed peso amount regularly into a fund or index (peso-cost averaging). You buy more units when prices dip and fewer when they rise, and returns compound over time.
What return can I expect?
The PSEi has historically returned about 8–10% per year long-term, though any single year varies widely. Balanced funds are steadier at 6–8%; Pag-IBIG MP2 has paid around 6–7% tax-free.
What is Pag-IBIG MP2?
A voluntary 5-year savings program by Pag-IBIG with tax-free dividends (historically ~6–7%). It's lower risk than equities and popular as a forced-savings complement.
What is the minimum to start?
Very low — apps like GInvest start from about ₱50, and COL Financial supports small recurring purchases, so you can begin with little capital.
Is investing better than a time deposit?
Equities target higher long-term growth but carry market risk; time deposits are safe but return less. Many Filipinos combine MP2 and index funds with an emergency fund in deposits.
Why does this calculator default to a 6% annual return instead of 10-12%?
Real PSEi data shows the index was roughly flat (about -0.7% annualized price return) from 2015 through 2024, and a PSEi-tracking fund (BPI Philippine Stock Index Fund) reported a -3.61% 3-year annualized return as of March 2025. A 10-12% assumption is not supported by the recent decade of actual Philippine equity performance, so we use a more conservative 6% default that you can adjust once you check your own fund's current fact sheet.
Does peso-cost-averaging (monthly investing) protect me from PSEi downturns?
It reduces timing risk by spreading purchases across up and down months, so you buy more units when prices are low and fewer when prices are high, but it does not guarantee a positive return. The PSEi's 2015-2024 record included several negative years, such as -12.76% in 2018 and -10.47% in 2022, so a monthly plan invested purely in PSEi-linked funds during that stretch would still have seen periods of loss and a modest overall gain at best.
Related calculators
Sources
1stock1.com, PSE Composite Index (PSEi) Yearly Returns: yearly closing values and percentage returns, 2015-2024. BPI Wealth, Philippine Stock Index Fund Fund Fact Sheet (March 31, 2025): NAVPU and 1-year/3-year annualized returns for a PSEi-tracking fund. Department of Finance, Capital Markets Efficiency Promotion Act (RA 12214): tax treatment of mutual fund/UITF gains, effective July 2025. See our methodology and editorial policy for how we source and update this data.