BDO Unibank is a full-service universal bank in the Philippines that provides a full range of industry-leading products and services, including corporate and consumer lending. The bank is regulated by the Bangko Sentral ng Pilipinas and operates under the regulations issued by the government. The bank is currently owned by BDO Unibank and provides Filipinos with multiple financial services at a low cost. Through its affiliation with Bangko Sentral ng Pilipinas, customers have access to a low-interest package with different types of available options. The bank provides easy repayment options that you can use to finance any of your personal or business needs. It can be used to pay for home renovations, tuition fees, furniture, home appliances, gadgets, travel, debt repayment, special occasions, or even a health emergency. You can search around you for any nearest BDO branch. You can also apply with BDO using its online loan application process to launch your own business, raise additional capital for expansion, and take on other business activities. A BDO loan calculator is a tool that helps you predict how much a BDO loan would cost you to repay.
What is a BDO loan calculator?
A BDO loan calculator will compute the total monthly payment amount based on your principal balance, rates of interest, and payback term length. It can be used before you fill out your application. It supports various loans, including mortgages, auto loans, personal loans, and SME loans. The bank offers customers access to a free loan calculator on their website, so you can visit the website and use it for free.
Using this calculator is simple and straightforward. You will be able to use the tool to complete your calculations quickly. To use it, you only have to input your loan details like the amount, your monthly income, the term, your desired monthly payment, etc.
Identifying the loan type that defines your payment schedule is the first step in determining your monthly payment, and it requires no arithmetic at all. Is it an interest-only or an amortized loan that you're taking out? You'll be able to figure out the types of payment calculations you'll need to do once you know.
Once you have decided on the type of loan you want to get, you can now go to the specific calculator on the BDO website, select its loan calculator, and provide the basic information needed; it will almost immediately show you the result: down payment amount, monthly amortization, etc.
BDO loan calculator formula
To understand a loan package and its calculations, you have to know about your principal, rate of interest, and other similar terms. The principal amount, as well as interest and fees due over the duration, are spread out evenly over your loan payback term. Although the length of your term may vary, you'll usually have 12 payments to make each year.
The type of calculator suitable for your calculation depends on the loans you select. There are two types of loans: interest-only ones and those that include both principal and interest.
Interest-only loans. With interest-only loans, you're only liable for paying the loan's interest for a set period. During that time, the amount of principal you owe will remain the same. The charges of monthly loans are simple to compute. Let's understand that in more detail by using an example.
For example, let's compute your costs if you have a ₱200,000 loan with a 6% annual percentage rate and a repayment term of 10 years. In a case like this, the tool would multiply the amount you borrowed by the loan's rate of interest. The figure would represent your annual interest costs, which it would now divide by 12 months:
₱200,000 x 6/100 = ₱200,000 x 0.06 = ₱12,000 in interest each year
So, ₱12,000 will now be divided by 12 months = ₱1,000 in interest per month.
Interest-only loans, of course, do not last indefinitely. You'll be obliged to repay the principal amount borrowed after the interest-only phase of your loan expires. After the period ends, most loans become amortizing loans, requiring you to make regular monthly payments on principal and interest.
Amortizing loans. Each month, a portion of your payment is applied to the principal balance and interest on amortizing loans. BDO auto loan is a type of amortizing loan.
For instance, let's say you took out an auto loan for ₱400,000 with an annual percentage rate of 6 % and a five-year repayment timeline. Here's how the tool would calculate the loan interest payments.
First, it will divide the interest rate you're being charged by the number of payments you'll make each year, usually 12 months.
Then it will multiply that figure by the initial balance of your loan, which should start at the full amount you borrowed.
For the above figures, the loan payment formula would look like:
6/100 divided by 12 = 0.06/12 = 0.005
0.005 x ₱400,000 = ₱2,000
In the first month, you'll have to pay ₱2,000 in interest. As you pay down your loan, more of your payment goes toward the principal sum and less toward interest. Using your new, lower loan balance, It will calculate each month's interest payment using the same method described before.
Types of BDO loan calculator
The BDO loan website has three different types of loan calculators: the auto loan calculator, the home loan calculator, and the SME loan calculator.
BDO auto loan calculator
An auto loan is a type of loan that lets you borrow money to buy a car or truck. Auto loans are typically low-interest loans with a three- to five-year repayment duration. Users can apply using the loan application and get to know a dedicated loan package offered by the company.
Aside from home, a car is frequently the second most expensive investment a person will make. Auto loans help borrowers afford vehicles that can cost hundreds of thousands to millions of pesos by breaking down the hefty cost into monthly payments that fit their budgets. You can conduct your homework with an auto loan calculator before taking out a car loan at the bank. This calculator will ask you for the vehicle type, loan term, vehicle price, monthly income, and the desired monthly installment. Because auto loans may have shorter durations than personal or home equity loans, you can analyze how different terms affect your payment.
This tool is easy to use; you must go to the BDO official website and navigate the auto loan calculator. Select the vehicle type of your choice (brand new or pre-owned), the loan term (60, 48, or 36 months), and either the vehicle price (₱300,000 minimum), your monthly income (₱50,000 minimum), or your desired payment (₱10,000 minimum). The tool will now display the down payment amount, the amount, the monthly amortization, and the rate of interest for a 20%, 30%, and 40% down payment percentage. Another important thing to note here is that you do not need a BDO account to perform this task.
Let's understand this better with an example.
For example, let's say someone wants to get a brand new vehicle with a 36-month term, and their choice is a ₱400,000 vehicle price. First of all, you have to plug these numbers into the BDO auto loan calculator, and this is the result you will get:
For 40% down payment:
Down payment amount - ₱160,000
Loan amount - ₱240,000
Monthly amortization - ₱7,652
Rate of interest - 14.78%
Monthly income - ₱50,000
BDO home loan calculator
BDO, which is owned by BDO Unibank, also provides users with home loans. It is a type of financial instrument that allows you to purchase your dream home affordably. The financial institution will finance up to 75-90 % of the cost of the home, and you will be required to make a down payment of the remaining amount. Home loans provide a large amount of money for a low rate of interest and a long repayment period. If you require a house loan, you'll need to use a home loan calculator to determine how much you may borrow.
Fill in your selling price, the loan amount, your monthly income, the desired monthly payment amount, and the applicable interest rate, Although your available home equity has a big role in how much you can borrow with a BDO home loan, your credit score will also influence the amount and rate of interest.
To use this, you must go to the BDO website and navigate the home loan calculator. First of all, you will have to fill in any one of these fields: the property selling price (₱500,000 per depositor), the amount (₱500,000 per depositor), the monthly income (₱50,000 minimum), or the desired payment (₱500,000 minimum). And then input the rate of interest. The tool will display the loan information you need to know: information like the down payment (20% of the selling price), the loan amount, the monthly amortization, and the monthly income for a 5, 10, 15, 20-year term.
For example, let's say you want to get a home loan with a ₱50,000 desired monthly payment with a 5% rate of interest, you'll have to input this data into the tool, and it will display the result, thus:
For a 15 year term:
Property selling price - ₱7,903,453
Down payment - ₱1,580,691
Loan amount - ₱6,322,762
Monthly amortization - ₱50,000
Monthly income - ₱125,000
For a 20 year term:
Property selling price - ₱9,470,332
Down payment - ₱1,894,066
Loan amount - ₱7,576,265
Monthly amortization - ₱50,000
Monthly income - ₱125,000
BDO SME loan calculator
Small and medium-sized enterprise finance (SME finance) is a major function of the overall business finance market. Capital for various businesses is given, purchased, and cost or priced. BDO SME loans can help you establish or grow your company, but it's crucial to understand what you're getting into before taking out a loan. Owned by BDO Unibank, this BDO SME loan calculator will give you an estimate of how much a loan will cost. To discover how much of an impact you can have on repayment, change the term and add more monthly installments.
To use this, go to the BDO website and navigate the SME loan calculator. Select one or more options related to your business that apply to your loan and click on Next to continue. On the next page, you will see the maximum and minimum loan details (minimum loan amount, maximum amount, maximum term) for the selected option(s); now, click on Go to the calculator to get to the tool. You will see two options: the term calculator and the SME-ready check.
BDO Loan term calculator
The term calculator allows you to calculate, easily and quickly, the repayment term of an SME loan. Fill in your preferred amount and term on the form, and display some loan details like the monthly amortization and the monthly income.
For example, on a 10-year loan, let's say you need a ₱5,000,000 loan to purchase equipment, machinery, real estate, or other business assets.
First of all, you have to check the Purchase of equipment, machinery, real estate, or other business assets box and click on Next; it will now show you the minimum and maximum loan details you will be eligible for, in this case, the minimum loan amount is ₱1,000,000, the maximum amount is ₱20,000,000, and the maximum term is 10 years. Now click on Go to the calculator, which will take you to the main tool. Input your preferred amount and preferred term, and it will show your result thus:
Loan amount - ₱5,000,000.00
Loan term - 10 Years
Monthly amortization - ₱58,701.00
Monthly income - ₱146,753.00
SME ready check calculator
This helps you check your minimum payment. You have to set your preferred credit line amount and how much you need from your credit line, and it will display the minimum amount due, the outstanding balance, the available credit line, and even the monthly breakdown.
For example, assuming you want to get a ₱15,000,000 loan with a ₱1,000,000 credit line, input the data into the tool, and you'll have a ₱6,659.00 minimum amount due, ₱1,006,659.00 outstanding balance, and ₱14,000,000.00 available credit line. The credit term's monthly breakdown will look like this:
Month 1 - ₱6,659.00 minimum amount due and ₱1,006,659.00 outstanding balance
Month 2 - ₱6,659.00 minimum amount due and ₱1,006,659.00 outstanding balance
Month 3 - ₱56,659.00 minimum amount due and ₱956,659.00 outstanding balance
Month 4 - ₱6,326.00 minimum amount due and ₱956,326.00 outstanding balance
Month 5 - ₱6,326.00 minimum amount due and ₱956,326.00 outstanding balance
What are the benefits of using a BDO loan calculator?
You can use a BDO loan calculator to figure out how much money you'll have to pay every month because if your payments are too high, you'll end up with late payments and bad credit, as well as high interest and hounding collectors. You do not need a BDO account to use this tool.
The tool helps you to calculate and allows you to see what you will be paying before you acquire a BDO loan. It is an online tool, so it has 24/7 availability and is free to use.
BDO loan calculators offer ease and convenience by doing all the hard work for you. You don't have to be a financial expert to determine how the tool works or how you can use it to figure out important values associated with your BDO loans.
You can use a BDO loan calculator and your monthly wages to figure out how much house you can purchase without blowing your household budget.
You can use the values you get as a result of a calculation from the tool and compare them with those offered by other financial institutions.
BDO loan calculators can be quite useful when consolidating or refinancing your debt. You can compare your current loan to the new loan offers and determine whether you will be able to save enough to make the switch.
A BDO loan calculator can also help you determine how much interest and principal you'll have to pay each month. As a result, you can decide on a monthly repayment amount that works best for you, where you pay off both the principal and the interest. A loan calculator can assist you in creating a household budget and long-term savings strategy.
Functions of a BDO loan calculator
Everything about this tool is quite straightforward, but still, there might be a few functions worth explaining a bit:
Down payment. A down payment is a sum of money that a buyer pays early in getting any BDO loan or service. The down payment represents a portion of the total amount, and the borrower will often take out a loan to finance the remainder.
Monthly amortization. The entire payment (a fixed sum) minus that month's interest payment equals the principal amount owed in that month. The outstanding loan balance for the following month is computed by subtracting the previous month's outstanding loan balance from the most recent principal payment.
Credit line. A line of credit is a credit facility provided by a BPO or another financial institution to a government, corporation, or individual customer that allows them to access funds when needed.
Example of calculations using a BDO loan calculator
Example 1. Let us assume that Mr. A wants to get a brand new vehicle on a 60-month term with his ₱100,000 monthly income. See what his loan details will look like.
As always, you input this data into the tool, and you will have the following result:
For a 20% down payment:
Vehicle price - ₱2,384,738
Down payment amount - ₱476,948
Loan amount - ₱1,907,790
Monthly amortization - ₱40,000
Rate of interest - 25.80%
For a 30% down payment:
Vehicle price - ₱2,725,414
Down payment amount - ₱817,624
Loan amount - ₱1,907,790
Monthly amortization - ₱40,000
Interest rate - 25.80%
Example 2. Let's say someone with a ₱150,000 monthly income wants to get a BDO home loan with a 10% interest rate. Input this data into the calculator accordingly, and we will have this result:
For a 15-year term:
Property selling price - ₱6,979,308
Down payment - ₱1,395,862
Loan amount - ₱5,583,446
Monthly amortization - ₱60,000
For a 20-year term:
Property selling price - ₱7,771,846
Down payment - ₱1,554,369
Loan amount - ₱6,217,477
Monthly amortization - ₱60,000
How to perform complex calculations using the BDO loan calculator
Example 1. Let’s compute the SME loan terms for the following inputs, using the BDO SME-ready check calculator:
Reason(s) for borrowing - Purchasing inventory or supplies for seasonal demand and to address clients' bulk orders, covering cash flow gaps between supplier payments and customer collections, and standby funds for unexpected expenses.
Tick them accordingly and click on Go to the calculator, then we use the following input:
Preferred credit line amount - ₱15,500,000
How much do you need from your credit line - ₱7,800,000
We will get the following result:
Minimum amount due - ₱51,934.00
Outstanding Balance - ₱7,851,934.00
Available credit line - ₱7,700,000.00
If we move down and click on the Monthly breakdown, we get:
Month 1 - ₱51,934.00 minimum amount due - ₱7,851,934.00 outstanding balance
Month 2 - ₱51,934.00 minimum amount due - ₱7,851,934.00 outstanding balance
Month 3 - ₱441,934.00 minimum amount due - ₱7,461,934.00 outstanding balance
Month 4 - ₱49,337.00 minimum amount due - ₱7,459,337.00 outstanding balance
Month 5 - ₱49,337.00 minimum amount due - ₱7,459,337.00 outstanding balance
Example 2. Let us compute the loan terms for a BDO SME with the following input:
Reason(s) for borrowing - Purchasing of equipment, machinery, real estate, or other business assets, opening/constructing a new store or for improvements/renovation in your business, starting an additional business or new investment, and purchasing inventory or supplies for seasonal demand and to address clients' bulk orders.
Check each of them and click on Next to see your minimum amount, maximum amount, and maximum loan term, then click on Go to the calculator, to access the main tool, then input the following:
Preferred loan amount - ₱10,000,000
Preferred loan term - 10 years
Then we will get the following result:
Loan amount - ₱10,000,000.00
Loan term - 10 years
Monthly amortization - ₱117,402.00
Monthly income - ₱293,505.00
