Salary Loan Calculator

The Salary Loan Calculator is a tool designed to help you estimate the loan amount you can afford based on your monthly income and loan conditions. It simplifies the process of planning your loan by showing you the maximum loan amount you may qualify for, as well as your expected monthly payments and total loan cost under given interest rates and repayment terms.

What are the Salary loans in the Philippines?

Salary loans in the Philippines are short-term privilege loans offered by government agencies like SSS and Pag-IBIG to eligible members for meeting immediate financial needs, such as emergencies or personal expenses. These loans typically base amounts on contributions, feature low interest rates, and require repayment via salary deductions or direct payments. Common types include one-month or two-month SSS salary loans and Pag-IBIG's Multi-Purpose Loan (often called salary loan).

SSS Salary Loan Overview

The SSS Salary Loan, detailed on sss.gov.ph/salary-loan, provides employed members, self-employed, voluntary members, and land-based OFWs with a one-month or two-month loan equivalent to their average of the latest 12 Monthly Salary Credits (MSCs), rounded up, or the applied amount, whichever is lower. 

• One-month loans require 36 posted monthly contributions (6 in the last 12 months).
• Two-month loans need 72 contributions.
• Self-employed/OFWs also require 6 recent contributions under their type. 

Interest is 8% per annum (10% if penalty condonation used in last 5 years) on diminishing balance, plus 1% service fee. Repayments occur over 24 equal monthly amortizations starting the second month after approval.

Key borrower requirements include:

• being under 65, 
• no past-due loans or final benefits, 
• updated employer contributions (for employed),
• no fraud history, and an active disbursement account. 

Employers certify applications and handle payroll deductions; defaults trigger full balance due plus deductions from future benefits. Renewals are possible after 6 months if not past due, with prior balance deducted from new proceeds.

Pag-IBIG Salary Loan (Multi-Purpose Loan)

Pag-IBIG's Multi-Purpose Loan (MPL), commonly known as the salary loan, lets qualified members borrow up to 80% of their Total Accumulated Value (TAV) from regular savings, processed in as fast as two days for uses like medical bills, education, or home improvements. Eligibility demands at least 24 monthly contributions (₱4,800 savings minimum), one contribution in the last 6 months, proof of income, and no defaults on Pag-IBIG loans.

Requirements include:

• two valid IDs, 
• latest payslips, 
• a completed MPL form with employer details; 
• self-employed apply via branches or email. 

Interest is 10.5% per annum over 24-36 months, with salary deductions for employed members or payments via outlets like Bayad Center; late payments incur 1/20 of 1% daily penalty. Renewals require 6 months' payments equivalent, deducting outstanding balance from new proceeds.

What is the Salary Loan Calculator for?

This calculator helps you determine the maximum loan amount you can borrow without overextending your budget, based on your salary and the lender's payment limits. It allows you to plan your repayments responsibly and make informed borrowing decisions.

How the loan amount depends on your salary

The loan amount you can get is typically limited by a percentage of your monthly income, often 50%. The maximum monthly payment you can afford is calculated as:

Max Payment = Salary × Payment Limit Percentage

For example, with a monthly income of ₱60,000 and a 50% payment limit, the maximum monthly loan payment is ₱30,000.

The loan amount is then calculated based on this payment limit, the loan term, and the interest rate.

Calculation method and formulas

Using the annuity payment method, your monthly payment P is calculated using:

Where:

• S = loan amount,
• r = monthly interest rate (annual rate divided by 12 and converted to decimal),
• n = number of monthly payments.

To find the maximum loan amount S you can afford given a monthly payment limit 

How to use the Salary Loan Calculator

1. Enter your desired loan amount.
2. Select your loan term (e.g., 3 to 36 months).
3. The calculator will automatically show your estimated monthly payment.
4. Adjust the loan amount or term to ensure your monthly payment does not exceed your budget (typically up to 50% of your salary).
5. Review the total loan cost and monthly payment to choose the best option for your financial situation.

This tool empowers you to borrow responsibly by aligning your loan with your income and repayment capacity, helping avoid financial stress and make better borrowing choices.