Loan Calculator: How to Compute Monthly Loan Payments

Before committing to a loan, you’ll need a clear understanding of your monthly repayments. This is where a loan calculator or a manual computation can help. Knowing how much you’ll need to set aside each month helps you make informed decisions and ensures you can comfortably pay back the loan. To find out how much you’ll have to pay monthly, you have to identify the following:

  1. Loan Amount – How much do you plan to loan?
  2. Payment Term – How many months do you need to pay back the loan?
  3. Interest Rate – How much is the loan worth?

How to Calculate without a Loan Calculator

To give you a better idea, you can calculate the monthly payment through a loan calculator or by using the add-on interest method below. 

Step 1: Calculate Total Interest
(Loan amount) x (Interest Rate in decimals) x (Months) = (Total Interest)

Step 2: Determine Total Amount to Repay
(Loan Amount) + (Total Interest) = (Total Amount to Repay)

Step 3: Calculate Monthly Payment
(Total Amount to Repay) / (Payment Term) = (Monthly Payment)

Sample Loan Details:

Loan AmountPHP 100,000.00
Payment Term18 months
Monthly Add-On Interest Rate2%
Monthly PaymentPHP 7,555.56 (Rounded off)

With the sample loan details provided, the estimated monthly payment would be PHP 7,555.56. This calculation assumes a fixed monthly add-on interest rate throughout the repayment period. 

Keep in mind that the actual computation may vary slightly due to rounding and other factors. While computing or using a loan calculator will help give you an idea of how much you’ll need to pay, it’s best to inquire with your lender for your final monthly payments.

Making Informed Decisions

By calculating the monthly payments of the loan amount you plan to borrow, you’ll be able to assess your monthly repayment obligations and determine if they fit comfortably within your budget. This empowers you to make informed decisions before borrowing money and meet your financial obligations responsibly.

On SB Finance’s website, you’ll also be able to find a built-in loan calculator for each of our loan services, so you can easily get an idea of how much your monthly payments will be for each loan product – Personal Loan, Car4Cash, and MotorsikLOAN

If you need help with your loan application, reach us via email (, our Customer Service hotline at (+632) 8887-9188, or our Facebook Page (@SBFinancePH).

We aspire to be the launchpad for your dreams, providing caring and responsible assistance when you need it most. We’re also registered with the Securities and Exchange Commission (SEC), and supervised by the Bangko Sentral ng Pilipinas (BSP), so we ensure to give you:

  • Fair Interest Rates: No excessive repayments, just reasonable rates
  • Guidance in Every Step: Dedicated customer service
  • Legal Protection: Your rights as a borrower are safeguarded by the law
  • Dependable Support: Legit loan services that are helpful, especially during financial emergencies

If you want an SB Finance Goal Consultant to guide you toward achieving your financial goal, simply answer this form, and we’ll be sure to reach out to you!

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