The chart below shows the amortization factors for annual interest rates ranging from 6% per year to 20% per year in the commonly available amortization periods in the Philippines which range from 5 years to 30 years. To calculate the monthly amortization for any loan balance, just multiply the loan balance with the amortization factor for the corresponding interest rate and amortization period on the table below. Please keep in mind that the resulting monthly amortization is a combination of principal and interest.
Click here for an example on how to calculate monthly amortization payments
Amortization Factors Table:
|
|
Amortization Period |
|||||
|
Annual Interest Rate |
5 Years |
10 Years |
15 Years |
20 Years |
25 Years |
30 Years |
|
6.0% |
0.01933280 |
0.01110205 |
0.00843857 |
0.00716431 |
0.00644301 |
0.00599551 |
|
6.5% |
0.01956615 |
0.01135480 |
0.00871107 |
0.00745573 |
0.00675207 |
0.00632068 |
|
7.0% |
0.01980120 |
0.01161085 |
0.00898828 |
0.00775299 |
0.00706779 |
0.00665302 |
|
7.5% |
0.02003795 |
0.01187018 |
0.00927012 |
0.00805593 |
0.00738991 |
0.00699215 |
|
8.0% |
0.02027639 |
0.01213276 |
0.00955652 |
0.00836440 |
0.00771816 |
0.00733765 |
|
8.5% |
0.02051653 |
0.01239857 |
0.00984740 |
0.00867823 |
0.00805227 |
0.00768913 |
|
9.0% |
0.02075836 |
0.01266758 |
0.01014267 |
0.00899726 |
0.00839196 |
0.00804623 |
|
9.5% |
0.02100186 |
0.01293976 |
0.01044225 |
0.00932131 |
0.00873697 |
0.00840854 |
|
10.0% |
0.02124704 |
0.01321507 |
0.01074605 |
0.00965022 |
0.00908701 |
0.00877572 |
|
10.5% |
0.02149390 |
0.01349350 |
0.01105399 |
0.00998380 |
0.00944182 |
0.00914739 |
|
11.0% |
0.02174242 |
0.01377500 |
0.01136597 |
0.01032188 |
0.00980113 |
0.00952323 |
|
11.5% |
0.02199261 |
0.01405954 |
0.01168190 |
0.01066430 |
0.01016469 |
0.00990291 |
|
12.0% |
0.02224445 |
0.01434709 |
0.01200168 |
0.01101086 |
0.01053224 |
0.01028613 |
|
12.5% |
0.02249794 |
0.01463762 |
0.01232522 |
0.01136141 |
0.01090354 |
0.01067258 |
|
13.0% |
0.02275307 |
0.01493107 |
0.01265242 |
0.01171576 |
0.01127835 |
0.01106200 |
|
13.5% |
0.02300985 |
0.01522743 |
0.01298319 |
0.01207375 |
0.01165645 |
0.01145412 |
|
14.0% |
0.02326825 |
0.01552664 |
0.01331741 |
0.01243521 |
0.01203761 |
0.01184872 |
|
14.5% |
0.02352828 |
0.01582868 |
0.01365501 |
0.01279998 |
0.01242163 |
0.01224556 |
|
15.0% |
0.02378993 |
0.01613350 |
0.01399587 |
0.01316790 |
0.01280831 |
0.01264444 |
|
15.5% |
0.02405319 |
0.01644105 |
0.01433990 |
0.01353881 |
0.01319745 |
0.01304517 |
|
16.0% |
0.02431806 |
0.01675131 |
0.01468701 |
0.01391256 |
0.01358889 |
0.01344757 |
|
16.5% |
0.02458452 |
0.01706423 |
0.01503709 |
0.01428901 |
0.01398245 |
0.01385148 |
|
17.0% |
0.02485258 |
0.01737977 |
0.01539004 |
0.01466801 |
0.01437797 |
0.01425675 |
|
17.5% |
0.02512221 |
0.01769788 |
0.01574578 |
0.01504942 |
0.01477530 |
0.01466325 |
|
18.0% |
0.02539343 |
0.01801852 |
0.01610421 |
0.01543312 |
0.01517430 |
0.01507085 |
|
18.5% |
0.02566621 |
0.01834165 |
0.01646523 |
0.01581897 |
0.01557484 |
0.01547945 |
|
19.0% |
0.02594055 |
0.01866724 |
0.01682876 |
0.01620685 |
0.01597680 |
0.01588892 |
|
19.5% |
0.02621645 |
0.01899522 |
0.01719470 |
0.01659665 |
0.01638006 |
0.01629920 |
|
20.0% |
0.02649388 |
0.01932557 |
0.01756297 |
0.01698825 |
0.01678452 |
0.01671019 |
[...] The amortization factor that corresponds to the payment term and annual interest rate. You can access a table of amortization factors here: Amortization Factors Table [...]
How do you compute for the amortization factors. Thanks. Hope to receive reply very soon.
Hi Teresita,
The formula I use is as follows:
Amort factor=I/(1-(1+I)^-M)
where
I = the monthly interest rate or annual interest rate divided by 12
M = the loan payment term in months
I use this formula in excel. I believe there is also a built in function in excel that can do this calculation but I haven’t tried that yet.
I got the formula above from my notes when I attended a seminar in real estate investing conducted by Urban Institute of real estate under Engineer Enrico Cruz.