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Sosyo Loan Interest Calculator

See the monthly payment, total interest and a full schedule for a member’s loan at a monthly rate.

The loan

Loan summary

First monthly payment₱2,300
Total interest₱900
Cash released to the member₱10,000
Total paid back₱10,900
MonthPrincipalInterestPaymentBalance
1₱2,000₱300₱2,300₱8,000
2₱2,000₱240₱2,240₱6,000
3₱2,000₱180₱2,180₱4,000
4₱2,000₱120₱2,120₱2,000
5₱2,000₱60₱2,060₱0

Principal is paid in equal monthly parts. A guide only; your group’s own loan rules apply.

How sosyo loan interest works

In a sosyo or bu-bu-ay, members borrow from the group fund and pay interest, usually a rate per month. That interest is the group’s income, shared by every head at the year-end hatian. Groups charge it one of three ways:

Whatever the method, record each payment as principal and interest separately. Our guide on the simple interest formula walks through more examples.

Common questions

What monthly interest rate do sosyo groups charge?

Rates are set by each group, commonly between 2% and 5% a month. Because the interest becomes the group’s income and is shared at year end, members usually agree on the rate at the start of the cycle.

What is the difference between flat and diminishing interest?

Diminishing interest is charged only on the balance still owed, so it gets smaller each month. Flat (add-on) interest is charged on the original amount every month, so the same loan costs more.

What does kaltas or interest deducted upfront mean?

The group deducts all the interest when the loan is released. A ₱10,000 loan at 3% for 5 months releases ₱8,500, and the member pays back the full ₱10,000.

Why record principal and interest separately?

Principal coming back is the group’s savings returning to the fund; interest is income to be shared at the hatian. Keeping them apart is what makes the year-end share correct.

Free calculatorSosyo Hatian CalculatorWork out the year-end payout per head (ulo): savings back plus an equal share of the group’s interest income. GuidesSosyo and bu-bu-ay guidesContributions, loans, treasurer records and the year-end share, with peso examples.
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