SSS Loan Calculator
Calculate your SSS Salary Loan amount, monthly amortization, net proceeds, and view complete payment schedule
Loan Details
Loan Results
| Month | Payment | Principal | Interest | Balance |
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Understanding Your SSS Salary Loan
How the SSS Salary Loan Calculator Works
The SSS (Social Security System) loan calculator determines your net loan proceeds and monthly amortization based on a diminishing principal balance, similar to mortgages or car loans. Interest is charged only on the outstanding balance, not the original loan amount.
Key Factors in SSS Loan Calculation
- Loan Amount (P): Based on your average Monthly Salary Credit (MSC)
- Interest Rate (r): Currently 8% to 10% per annum (diminishing balance)
- Loan Term (n): 24 months for Salary Loans
- Monthly Interest Rate (i): Annual rate divided by 12 months
Determining Your Maximum Loanable Amount
The calculator first determines how much you can borrow based on your contributions:
1-Month Salary Loan
- Equivalent to your average Monthly Salary Credit (MSC) from the last 12 months
- Requirements: At least 36 monthly contributions, with 6 within the last 12 months
2-Month Salary Loan
- Equivalent to twice your average MSC from the last 12 months
- Requirements: At least 72 monthly contributions, with 6 within the last 12 months
Calculating Monthly Amortization
The SSS Salary Loan is payable in 24 equal monthly installments. The calculator uses this amortization formula:
M = P × [i(1+i)^n] / [(1+i)^n - 1]
Where:
- M = Monthly amortization
- P = Principal loan amount
- i = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (24 months)
Understanding Net Loan Proceeds
The amount you actually receive is the approved loan amount minus deductions:
Net Proceeds = Loan Amount - Service Fee - Pro-rated Interest - Outstanding Balance (if renewal)
Service Fee
A 1% service fee is deducted in advance from your loan amount.
Pro-rated Interest
Interest from the loan granting date until the month before your first payment is deducted in advance.
Outstanding Balance
If renewing a previous SSS loan, the remaining balance is deducted from your new loan.
Amortization Schedule
The payment schedule shows how each payment is split between principal and interest. As the principal decreases, the interest portion decreases while the principal portion increases over the 24-month term.
Frequently Asked Questions
The current interest rate for SSS salary loans is 10% per annum, computed on a diminishing principal balance. However, members who haven't availed of penalty condonation may qualify for an 8% rate.
SSS salary loans are payable within 24 months (2 years) through equal monthly amortizations. The first payment is due on the second month following loan approval.
Yes, you can pay your SSS loan earlier without prepayment penalties. Early payment can save you money on interest since it's calculated on the diminishing balance.
Missing payments will result in penalties. The SSS charges a 1% monthly penalty on overdue amounts. Consistent non-payment may affect your eligibility for future loans and benefits.
Your MSC is based on your actual monthly salary but is capped according to the SSS contribution table. The maximum MSC changes periodically as SSS updates the contribution table.