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Interest rate calculator

What is an interest rate calculator and how to use it in 2022 in the Philippines

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The best interest rate calculator
Principal amount

The amount you want to receive

10000 ₱
3000000 ₱
Loan term

Specify the desired length of the loan

Annual Percentage Rate (APR)

Choose the interest rate on the loan

1 %
50 %
Type of payment

Specify the type of payment for calculating

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An interest rate is the amount of interest payable per period as a percentage of the principal sum on an amount lent, deposited, or borrowed. The total interest on an amount lent, deposited, or borrowed is determined by the original principal amount, the interest rate, the compounding frequency, and the period over which it is deposited or borrowed. 

The annual interest rate is the rate over one year; other interest rates may apply over shorter periods, such as a month or a day, but are usually annualized. The annual interest rate has been described as an "index of preference." For every peso of present income, replace one peso of future income. The borrower wants or needs to have the money sooner rather than later and is willing to pay an interest rate fee for this privilege.

Simple interest vs. compound interest

Simple interest is calculated using the simple interest calculator as an annual percentage rate of the principal only. In contrast, compound interest is calculated as the annual percentage yield of the principal with any accrued interest. Due to this compounding behavior, interest paid by lenders eventually earns interest, and the more often interest compounds in a given time, the more interest is earned. The annual interest rate represents compound interest rather than simple interest unless otherwise noted. To conduct calculations or learn more about the differences in compounding frequencies, use the compound interest calculator.

What is an interest rate calculator?

The interest rate calculator can determine real interest rates on loans with fixed terms and monthly payments, such as when car dealers only provide monthly payment information and the total price but do not include the actual interest rate on the car loan. Instead, use the simple interest calculator or the compound interest calculator to calculate the interest on investments to compare the difference between interest rates (higher interest rates and lower interest rates).

It is a free tool that calculates the interest rate, the future value of loans or savings, the number of payments, and the total interest paid or received. You can only calculate the interest rate every year, which means if your loan is not yearly, you have to convert it to yearly by dividing it by 12 months if it is given in months or by 365 days if it is given in days.

It has a box in which you enter the principal, which is the loan amount, the loan term, in years, and then the monthly payment amount, and the calculator will give you a knowledge of the interest rate, the number of payments, the amount paid and the total interest paid. Simple-interest online calculators are easy to use. To calculate the interest rate, enter the following information:

After you enter this data and press the Calculate button, the interest rate calculator will utilize the formula to determine the interest rate, the total payments, and the total income values in seconds. You will receive the exact interest rate you receive/pay during the loan term.

Interest rate formula

The interest rate is the annual percentage yield of the principal amount that the lender or bank charges the borrower to use its assets or money for a particular time. The interest rate is the rate a bank charges its depositors for keeping money in a savings account, a recurring deposit (compound interest rate), or a fixed deposit (simple interest rate). In this section, we will discuss the interest rate formula.

The interest rate formula can calculate the amount of money that must be repaid for a loan and the interest over a fixed deposit, mutual fund, etc. The interest rate formula can also be used to calculate credit card interest.


Example: Mr. A borrowed ₱6,000 from the bank at some rate per annum and that amount becomes double in two years. Calculate the rate at which Mr. A borrowed the money. First of all, input the given digits into specific places on the calculator: 

Example: Mrs. B. pays a fixed price of ₱10,000 into her bank account every month. The bank promises her compound interest of ₱100 per payment, and she is going to make this payment for 10 years. Let's calculate her compound interest rate. First of all, type in the inputs into the given spaces:

When to use the interest rate calculator 

The online calculator instantly shows you the interest rate you will have to pay or receive after the loan term, i.e. the total amount you will pay, the total interest, and the interest rate. But to get this interest rate, you must first enter basic information like principal amount, time, and the monthly payment in the tool. The interest rate calculator is used in the following cases:

How can an interest rate calculator be helpful to you?

An interest rate calculator is an online tool that makes a quick and easy interest rate and total loan future amount calculation. Unlike manual calculators, this tool can instantly display the results of complex numbers without wasting time. The following points explain how the tool can help you:

Types of interest rate calculators

As stated earlier, there are two interest rate calculators: the compound interest rate calculator and the simple interest calculator. The online tool only has one type out of these, i.e. the compound interest rate calculator, which can do the job of the two.

What are the benefits of using an interest rate calculator?

The online tool helps borrowers and lenders make good financial decisions because it provides several useful features. Some of the benefits of using it are:

Functions of an interest rate calculator

The calculator does not come with any special features or functions; you need to input the values correctly, and then the tool will do the hard work of getting the problem solved in seconds. Some of the functions you may likely see while using the calculator are:

Some of the other functions we could see while using the tool are:

How to use a keyboard for online interest rate calculation?

The keyboard on the computer is very straightforward to input data for this program as everything is essentially digits, and there are no special keys.

Examples of calculations using an interest rate calculator

Example 1: Someone is about to purchase a car worth ₱280,000. He wants to borrow the money from the financial institution, but he is unaware of the interest rate per annum, he is planning to go for 4 years, but the bank tells him his total monthly payment will be ₱7,200. What will be the interest rate for this transaction?

Example 2: If someone borrows a sum of ₱460,500 for a term of 21 months at an ungiven rate per annum with a simple interest of ₱161,175, what will be their interest rates?

Interest rates = (simple interest × 100) / (P × t)

The interest rate is 20%.

How to perform complex tasks using an interest rate calculator?

The tool is not just useful for borrowers or lenders; interest rate is a concise topic in schools, so it might be utilized by both students and lecturers, who look to do their work quickly or try to confirm their manual calculations. In a classroom context, complex questions on the topic are often asked, and the tool can also answer them. Some calculators provide step-by-step solutions, while others solve and tell you how much you pay back on your mortgage each year, month, and even daily. Let's see an example;

A man gets a loan of ₱30,000 from a bank, with a fixed monthly payment of ₱1,000 for a loan term of 3 years on an unknown interest rate. Compute the total amount accrued after 1 year, 2 years, and 3 years using the simple interest calculator.

Since we have gotten our interest rate, let's use this data to compute how much the person in question will pay for year 1, year 2, and year 3 using a simple interest calculator. 

After 1 year




After year 2:




The total amount, principal plus interest, from simple interest on a principal of ₱30,000.00 at a rate of 12.249% per year for 2 years is ₱37,349.40 using the simple interest calculator.



Solving our equation:

The total amount, principal plus interest, from simple interest on a principal of ₱30,000.00 at a rate of 12.249% per year for 3 years is $41,024.10 using the simple interest calculator.

Therefore, in complex situations like this, you can use a simple interest calculator or a compound interest calculator.