Sample Computation of SSS Salary Loan (With Pro-Rated Interest Explained)
If you’re planning to apply for an SSS Salary Loan, you might be wondering:
👉 “How much will I actually receive?”
👉 “What is this pro-rated interest deduction?”
👉 “How are monthly payments computed?”
This guide will explain all of that — in plain, beginner-friendly language — so you can see exactly how your SSS loan works before you apply.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a short-term cash loan offered by the Social Security System (SSS) to employed, self-employed, or voluntary members.
It’s designed to provide financial help in times of need — like emergency expenses, tuition, or household repairs — and is paid in monthly installments through payroll deduction.
Quick Facts:
- 🕐 Loan Term: 24 months (2 years)
- 💸 Interest Rate: 8% per annum (on diminishing balance)
- ⚙️ Service Charge: 1% of the approved amount (deducted upfront)
- 📅 Pro-rated Interest: Deducted upfront based on approval date
💡 Why the “Pro-Rated Interest” Matters
When your loan is approved, SSS does not start your monthly amortization immediately.
There’s a gap between approval date and your first payment month — usually around 1.5 months.
Instead of letting that gap be interest-free, SSS deducts the pro-rated interest upfront to cover those days.
🧮 Example Scenario
Let’s say your loan is approved on April 10, 2025 for ₱30,000.
- SSS counts the days from April 10 to May 31 = 52 days
- Annual interest = 8% of ₱30,000 = ₱2,400/year
- Daily interest = ₱2,400 ÷ 365 = ₱6.58/day
- Multiply by 52 days → ₱6.58 × 52 = ₱342.16
✅ ₱342.16 is deducted upfront as pro-rated interest, together with the 1% service charge.
So if your loan is ₱30,000:
- Service charge (1%) = ₱300
- Pro-rated interest ≈ ₱342.16
- Total deductions = ₱642.16
- Actual cash you’ll receive = ₱29,357.84
This is why your loan proceeds are slightly less than the amount you applied for.
🧾 SSS Salary Loan Computation Formula
Here’s how the monthly amortization is computed: Monthly Interest=Balance×8%12\text{Monthly Interest} = \text{Balance} × \frac{8\%}{12}Monthly Interest=Balance×128% Monthly Payment=Principal + Interest\text{Monthly Payment} = \text{Principal + Interest}Monthly Payment=Principal + Interest
The interest is based on the remaining balance, so it decreases each month — this is called the diminishing balance method.
🧮 Sample Computations (₱10,000 to ₱50,000 Loans)
Below are full sample computations based on 24 months at 8% annual interest.
Each table also assumes ₱219–₱548 pro-rated interest (depending on loan amount) is deducted before release.
📘 Example 1: ₱10,000 Loan (24 Months)
| Month | Beginning Balance | Payment | Interest (0.667%) | Principal | Remaining Balance |
|---|---|---|---|---|---|
| 1 | ₱10,000.00 | ₱450.00 | ₱66.67 | ₱383.33 | ₱9,616.67 |
| 2 | ₱9,616.67 | ₱450.00 | ₱64.11 | ₱385.89 | ₱9,230.78 |
| 3 | ₱9,230.78 | ₱450.00 | ₱61.54 | ₱388.46 | ₱8,842.32 |
| 4 | ₱8,842.32 | ₱450.00 | ₱58.95 | ₱391.05 | ₱8,451.27 |
| 5 | ₱8,451.27 | ₱450.00 | ₱56.34 | ₱393.66 | ₱8,057.61 |
| 6 | ₱8,057.61 | ₱450.00 | ₱53.72 | ₱396.28 | ₱7,661.33 |
| 7 | ₱7,661.33 | ₱450.00 | ₱51.08 | ₱398.92 | ₱7,262.41 |
| 8 | ₱7,262.41 | ₱450.00 | ₱48.42 | ₱401.58 | ₱6,860.83 |
| 9 | ₱6,860.83 | ₱450.00 | ₱45.74 | ₱404.26 | ₱6,456.57 |
| 10 | ₱6,456.57 | ₱450.00 | ₱43.04 | ₱406.96 | ₱6,049.61 |
| 11 | ₱6,049.61 | ₱450.00 | ₱40.33 | ₱409.67 | ₱5,639.94 |
| 12 | ₱5,639.94 | ₱450.00 | ₱37.60 | ₱412.40 | ₱5,227.54 |
| 13 | ₱5,227.54 | ₱450.00 | ₱34.85 | ₱415.15 | ₱4,812.39 |
| 14 | ₱4,812.39 | ₱450.00 | ₱32.08 | ₱417.92 | ₱4,394.47 |
| 15 | ₱4,394.47 | ₱450.00 | ₱29.30 | ₱420.70 | ₱3,973.77 |
| 16 | ₱3,973.77 | ₱450.00 | ₱26.49 | ₱423.51 | ₱3,550.26 |
| 17 | ₱3,550.26 | ₱450.00 | ₱23.67 | ₱426.33 | ₱3,123.93 |
| 18 | ₱3,123.93 | ₱450.00 | ₱20.83 | ₱429.17 | ₱2,694.76 |
| 19 | ₱2,694.76 | ₱450.00 | ₱17.97 | ₱432.03 | ₱2,262.73 |
| 20 | ₱2,262.73 | ₱450.00 | ₱15.08 | ₱434.92 | ₱1,827.81 |
| 21 | ₱1,827.81 | ₱450.00 | ₱12.19 | ₱437.81 | ₱1,389.99 |
| 22 | ₱1,389.99 | ₱450.00 | ₱9.27 | ₱440.73 | ₱949.26 |
| 23 | ₱949.26 | ₱450.00 | ₱6.33 | ₱443.67 | ₱505.59 |
| 24 | ₱505.59 | ₱450.00 | ₱3.37 | ₱446.63 | ₱0.00 |
Summary:
- Total payment: ₱10,800
- Total interest: ₱800
- Pro-rated interest (approx.): ₱114
- Actual cash received: ₱9,786
📘 Example 2: ₱20,000 Loan (24 Months)
| Month | Beginning Balance | Payment | Interest (0.667%) | Principal | Remaining Balance |
| 1 | ₱20,000.00 | ₱900.00 | ₱133.40 | ₱766.60 | ₱19,233.40 |
| 2 | ₱19,233.40 | ₱900.00 | ₱128.85 | ₱771.15 | ₱18,462.25 |
| 3 | ₱18,462.25 | ₱900.00 | ₱123.10 | ₱776.90 | ₱17,685.35 |
| 4 | ₱17,685.35 | ₱900.00 | ₱117.80 | ₱782.20 | ₱16,903.15 |
| 5 | ₱16,903.15 | ₱900.00 | ₱112.76 | ₱787.24 | ₱16,115.91 |
| 6 | ₱16,115.91 | ₱900.00 | ₱107.57 | ₱792.43 | ₱15,323.48 |
| 7 | ₱15,323.48 | ₱900.00 | ₱102.31 | ₱797.69 | ₱14,525.79 |
| 8 | ₱14,525.79 | ₱900.00 | ₱97.00 | ₱803.00 | ₱13,722.79 |
| 9 | ₱13,722.79 | ₱900.00 | ₱91.53 | ₱808.47 | ₱12,914.32 |
| 10 | ₱12,914.32 | ₱900.00 | ₱86.12 | ₱813.88 | ₱12,100.44 |
| 11 | ₱12,100.44 | ₱900.00 | ₱80.27 | ₱819.73 | ₱11,280.71 |
| 12 | ₱11,280.71 | ₱900.00 | ₱75.18 | ₱824.82 | ₱10,455.89 |
| 13 | ₱10,455.89 | ₱900.00 | ₱69.94 | ₱830.06 | ₱9,625.83 |
| 14 | ₱9,625.83 | ₱900.00 | ₱64.17 | ₱835.83 | ₱8,789.99 |
| 15 | ₱8,789.99 | ₱900.00 | ₱58.66 | ₱841.34 | ₱7,948.65 |
| 16 | ₱7,948.65 | ₱900.00 | ₱52.99 | ₱847.01 | ₱7,101.64 |
| 17 | ₱7,101.64 | ₱900.00 | ₱47.37 | ₱852.63 | ₱6,249.01 |
| 18 | ₱6,249.01 | ₱900.00 | ₱41.67 | ₱858.33 | ₱5,390.68 |
| 19 | ₱5,390.68 | ₱900.00 | ₱35.95 | ₱864.05 | ₱4,526.63 |
| 20 | ₱4,526.63 | ₱900.00 | ₱30.19 | ₱869.81 | ₱3,656.82 |
| 21 | ₱3,656.82 | ₱900.00 | ₱24.41 | ₱875.59 | ₱2,781.23 |
| 22 | ₱2,781.23 | ₱900.00 | ₱18.55 | ₱881.45 | ₱1,899.78 |
| 23 | ₱1,899.78 | ₱900.00 | ₱12.67 | ₱887.33 | ₱1,012.45 |
| 24 | ₱1,012.45 | ₱900.00 | ₱6.75 | ₱893.25 | ₱0.00 |
Summary:
- Total payment: ₱21,600
- Total interest: ₱1,600
- Pro-rated interest: ₱219
- Actual cash received: ₱19,581
📘 Example 3: ₱30,000 Loan (24 Months)
| Month | Beginning Balance | Payment | Interest (0.667%) | Principal | Remaining Balance |
| 1 | ₱30,000.00 | ₱1,350.00 | ₱200.10 | ₱1,149.90 | ₱28,850.10 |
| 2 | ₱28,850.10 | ₱1,350.00 | ₱192.44 | ₱1,157.56 | ₱27,692.54 |
| 3 | ₱27,692.54 | ₱1,350.00 | ₱184.65 | ₱1,165.35 | ₱26,527.19 |
| 4 | ₱26,527.19 | ₱1,350.00 | ₱176.85 | ₱1,173.15 | ₱25,354.04 |
| 5 | ₱25,354.04 | ₱1,350.00 | ₱169.11 | ₱1,180.89 | ₱24,173.15 |
| 6 | ₱24,173.15 | ₱1,350.00 | ₱161.35 | ₱1,188.65 | ₱22,984.50 |
| 7 | ₱22,984.50 | ₱1,350.00 | ₱153.25 | ₱1,196.75 | ₱21,787.75 |
| 8 | ₱21,787.75 | ₱1,350.00 | ₱145.25 | ₱1,204.75 | ₱20,583.00 |
| 9 | ₱20,583.00 | ₱1,350.00 | ₱137.09 | ₱1,212.91 | ₱19,370.09 |
| 10 | ₱19,370.09 | ₱1,350.00 | ₱129.23 | ₱1,220.77 | ₱18,149.32 |
| 11 | ₱18,149.32 | ₱1,350.00 | ₱121.36 | ₱1,228.64 | ₱16,920.68 |
| 12 | ₱16,920.68 | ₱1,350.00 | ₱113.57 | ₱1,236.43 | ₱15,684.25 |
| 13 | ₱15,684.25 | ₱1,350.00 | ₱104.94 | ₱1,245.06 | ₱14,439.19 |
| 14 | ₱14,439.19 | ₱1,350.00 | ₱96.48 | ₱1,253.52 | ₱13,185.67 |
| 15 | ₱13,185.67 | ₱1,350.00 | ₱87.94 | ₱1,262.06 | ₱11,923.61 |
| 16 | ₱11,923.61 | ₱1,350.00 | ₱79.49 | ₱1,270.51 | ₱10,653.10 |
| 17 | ₱10,653.10 | ₱1,350.00 | ₱71.05 | ₱1,278.95 | ₱9,374.15 |
| 18 | ₱9,374.15 | ₱1,350.00 | ₱62.46 | ₱1,287.54 | ₱8,086.61 |
| 19 | ₱8,086.61 | ₱1,350.00 | ₱53.98 | ₱1,296.02 | ₱6,790.59 |
| 20 | ₱6,790.59 | ₱1,350.00 | ₱45.30 | ₱1,304.70 | ₱5,485.89 |
| 21 | ₱5,485.89 | ₱1,350.00 | ₱36.61 | ₱1,313.39 | ₱4,172.50 |
| 22 | ₱4,172.50 | ₱1,350.00 | ₱27.83 | ₱1,322.17 | ₱2,850.33 |
| 23 | ₱2,850.33 | ₱1,350.00 | ₱19.00 | ₱1,331.00 | ₱1,519.33 |
| 24 | ₱1,519.33 | ₱1,350.00 | ₱10.13 | ₱1,339.87 | ₱0.00 |
Summary:
- Total payment: ₱32,400
- Total interest: ₱2,400
- Pro-rated interest: ₱342
- Actual cash received: ₱29,658
📘 Example 4: ₱40,000 Loan (24 Months)
| Month | Beginning Balance | Payment | Interest (0.667%) | Principal | Remaining Balance |
| 1 | ₱40,000.00 | ₱1,800.00 | ₱266.80 | ₱1,533.20 | ₱38,466.80 |
| 2 | ₱38,466.80 | ₱1,800.00 | ₱256.51 | ₱1,543.49 | ₱36,923.31 |
| 3 | ₱36,923.31 | ₱1,800.00 | ₱246.36 | ₱1,553.64 | ₱35,369.67 |
| 4 | ₱35,369.67 | ₱1,800.00 | ₱236.22 | ₱1,563.78 | ₱33,805.89 |
| 5 | ₱33,805.89 | ₱1,800.00 | ₱226.06 | ₱1,573.94 | ₱32,231.95 |
| 6 | ₱32,231.95 | ₱1,800.00 | ₱215.89 | ₱1,584.11 | ₱30,647.84 |
| 7 | ₱30,647.84 | ₱1,800.00 | ₱205.72 | ₱1,594.28 | ₱29,053.56 |
| 8 | ₱29,053.56 | ₱1,800.00 | ₱195.56 | ₱1,604.44 | ₱27,449.12 |
| 9 | ₱27,449.12 | ₱1,800.00 | ₱185.29 | ₱1,614.71 | ₱25,834.41 |
| 10 | ₱25,834.41 | ₱1,800.00 | ₱172.81 | ₱1,627.19 | ₱24,207.22 |
| 11 | ₱24,207.22 | ₱1,800.00 | ₱161.18 | ₱1,638.82 | ₱22,568.40 |
| 12 | ₱22,568.40 | ₱1,800.00 | ₱150.20 | ₱1,649.80 | ₱20,918.60 |
| 13 | ₱20,918.60 | ₱1,800.00 | ₱139.59 | ₱1,660.41 | ₱19,258.19 |
| 14 | ₱19,258.19 | ₱1,800.00 | ₱128.45 | ₱1,671.55 | ₱17,586.64 |
| 15 | ₱17,586.64 | ₱1,800.00 | ₱117.35 | ₱1,682.65 | ₱15,904.00 |
| 16 | ₱15,904.00 | ₱1,800.00 | ₱106.09 | ₱1,693.91 | ₱14,210.09 |
| 17 | ₱14,210.09 | ₱1,800.00 | ₱94.80 | ₱1,705.20 | ₱12,504.89 |
| 18 | ₱12,504.89 | ₱1,800.00 | ₱83.42 | ₱1,716.58 | ₱10,788.31 |
| 19 | ₱10,788.31 | ₱1,800.00 | ₱72.00 | ₱1,728.00 | ₱9,060.31 |
| 20 | ₱9,060.31 | ₱1,800.00 | ₱60.44 | ₱1,739.56 | ₱7,320.75 |
| 21 | ₱7,320.75 | ₱1,800.00 | ₱48.83 | ₱1,751.17 | ₱5,569.58 |
| 22 | ₱5,569.58 | ₱1,800.00 | ₱37.15 | ₱1,762.85 | ₱3,806.73 |
| 23 | ₱3,806.73 | ₱1,800.00 | ₱25.40 | ₱1,774.60 | ₱2,032.13 |
| 24 | ₱2,032.13 | ₱1,800.00 | ₱13.55 | ₱1,786.45 | ₱0.00 |
Summary:
- Total payment: ₱43,200
- Total interest: ₱3,200
- Pro-rated interest: ₱438
- Actual cash received: ₱39,162
📘 Example 5: ₱50,000 Loan (24 Months)
| Month | Beginning Balance | Payment | Interest (0.667%) | Principal | Remaining Balance |
| 1 | ₱50,000.00 | ₱2,250.00 | ₱333.50 | ₱1,916.50 | ₱48,083.50 |
| 2 | ₱48,083.50 | ₱2,250.00 | ₱320.16 | ₱1,929.84 | ₱46,153.66 |
| 3 | ₱46,153.66 | ₱2,250.00 | ₱307.12 | ₱1,942.88 | ₱44,210.78 |
| 4 | ₱44,210.78 | ₱2,250.00 | ₱294.21 | ₱1,955.79 | ₱42,254.99 |
| 5 | ₱42,254.99 | ₱2,250.00 | ₱281.10 | ₱1,968.90 | ₱40,286.09 |
| 6 | ₱40,286.09 | ₱2,250.00 | ₱268.21 | ₱1,981.79 | ₱38,304.30 |
| 7 | ₱38,304.30 | ₱2,250.00 | ₱255.49 | ₱1,994.51 | ₱36,309.79 |
| 8 | ₱36,309.79 | ₱2,250.00 | ₱242.46 | ₱2,007.54 | ₱34,302.25 |
| 9 | ₱34,302.25 | ₱2,250.00 | ₱228.98 | ₱2,021.02 | ₱32,281.23 |
| 10 | ₱32,281.23 | ₱2,250.00 | ₱215.36 | ₱2,034.64 | ₱30,246.59 |
| 11 | ₱30,246.59 | ₱2,250.00 | ₱201.94 | ₱2,048.06 | ₱28,198.53 |
| 12 | ₱28,198.53 | ₱2,250.00 | ₱187.92 | ₱2,062.08 | ₱26,136.45 |
| 13 | ₱26,136.45 | ₱2,250.00 | ₱174.21 | ₱2,075.79 | ₱24,060.66 |
| 14 | ₱24,060.66 | ₱2,250.00 | ₱160.20 | ₱2,089.80 | ₱21,970.86 |
| 15 | ₱21,970.86 | ₱2,250.00 | ₱146.55 | ₱2,103.45 | ₱19,867.41 |
| 16 | ₱19,867.41 | ₱2,250.00 | ₱132.45 | ₱2,117.55 | ₱17,749.86 |
| 17 | ₱17,749.86 | ₱2,250.00 | ₱118.36 | ₱2,131.64 | ₱15,618.22 |
| 18 | ₱15,618.22 | ₱2,250.00 | ₱104.21 | ₱2,145.79 | ₱13,472.43 |
| 19 | ₱13,472.43 | ₱2,250.00 | ₱89.83 | ₱2,160.17 | ₱11,312.26 |
| 20 | ₱11,312.26 | ₱2,250.00 | ₱75.47 | ₱2,174.53 | ₱9,137.73 |
| 21 | ₱9,137.73 | ₱2,250.00 | ₱60.88 | ₱2,189.12 | ₱6,948.61 |
| 22 | ₱6,948.61 | ₱2,250.00 | ₱46.31 | ₱2,203.69 | ₱4,744.92 |
| 23 | ₱4,744.92 | ₱2,250.00 | ₱31.64 | ₱2,218.36 | ₱2,526.56 |
| 24 | ₱2,526.56 | ₱2,250.00 | ₱16.85 | ₱2,233.15 | ₱0.00 |
Summary:
- Total payment: ₱54,000
- Total interest: ₱4,000
- Pro-rated interest: ₱548
- Actual cash received: ₱49,452
🔍 Try It Yourself
To see your own exact loan computation, try the SSS Salary Loan Calculator —
it automatically calculates monthly amortization, total interest, and actual take-home amount including the pro-rated interest.
📋 Key Takeaways (TL;DR)
- SSS Salary Loan interest = 8% per year on a diminishing balance
- There’s a 1% service charge and a pro-rated interest deducted upfront
- Pro-rated interest covers days before your first monthly payment starts
- Loan term = 24 months (2 years)
- You can settle early without penalty
- Actual amount you receive is slightly less than the approved loan due to deductions
❓ Frequently Asked Questions (FAQs)
1. What is pro-rated interest in SSS Salary Loan?
It’s the interest charged for the days between loan approval and your first payment month. It’s deducted before releasing the loan.
2. Why is my released loan lower than my approved amount?
Because SSS deducts the 1% service fee and pro-rated interest upfront.
3. When does amortization start?
Usually two months after approval. For example, if approved in April, first payment is due in June.
4. Can I pay my SSS Salary Loan early?
Yes. You can pay anytime or settle in full without penalty.
5. Can I get another loan while I still have one?
You must first pay at least half of your existing loan balance and have no overdue payments before reapplying.
💬 Final Thoughts
The SSS Salary Loan is a helpful financial cushion — but understanding the pro-rated interest and net amount you’ll receive is crucial.
By checking your loan computation before applying, you’ll know exactly how much to expect, when payments start, and how much interest you’ll pay overall.
👉 Try the SSS Salary Loan Calculator to see your exact numbers today.
