MP2 is Pag-IBIG's voluntary savings programme: you put money in, it is locked for five years, and the fund declares a dividend each year out of what it earned.
The dividend is worked out on your average balance, not your year-end balance — and that is the single thing most MP2 calculators get wrong. Pag-IBIG reckons it on the average daily balance across the year. Money you remit in November has been in the fund for two months and earns for two months. Applying the annual rate to your closing balance instead credits a full year's dividend to every peso whenever it arrived, and in the first year of a monthly plan that is close to double the real figure.
A level stream of remittances averages out to half the year, so each year is credited on the opening balance plus half of what went in during it. The opening balance is not halved — it was there on day one.
The rate is not guaranteed, and never has been. It is declared after the financial year, from the fund's net income. Recent years have run in the six to seven per cent range, but a past declaration is not a commitment, and no figure entered above is a promise by Pag-IBIG or by this page. That is why the field is labelled an assumption and why nothing here ships a rate you did not choose.
Expect your annualised return to come out below the rate you entered if you save monthly. Your average peso was invested for about half the term, so measured against everything you put in, the growth is smaller. A single lump sum left for the full five years does earn close to the rate itself.
Almost certainly because the other one applied the annual rate to your year-end balance. Pag-IBIG computes the dividend on your average daily balance over the year, so a contribution remitted in November earns for two months, not twelve. In the first year of a monthly plan the two methods differ by nearly double. This page shows both figures so you can see exactly which number moved.
No, and no calculator can make it so. Pag-IBIG declares the MP2 dividend after each financial year, out of the fund’s net income. Rates have run in the six to seven per cent range in recent years, but a past declaration is not a commitment. The rate on this page is a figure you enter, and every peso beyond your own contributions depends on it holding for the whole term.
Compounding leaves each year’s dividend in the account, where it earns dividends of its own, and it always ends higher on the same inputs. Paying out gives you the money each year, which is the point if you want the income now. Both are offered by Pag-IBIG and the choice is made when you open the account — switch the selector above to compare them on your own figures.
Because your money was not in the fund for the whole term. If you save monthly, your average peso has been invested for roughly half the period, so the return measured against your total contributions comes out well below the headline rate. That is arithmetic, not a shortfall — a single lump sum left for the full term does earn close to the rate itself.
Five years. That is the maturity of the programme, and the money is locked in for the term. Savers who want a longer horizon open consecutive accounts, and you can hold more than one at a time. Each account’s dividends are declared year by year, so a projection stretching well beyond five years is a model rather than a forecast.
MP2 dividends are tax-exempt under Section 32(B)(6) of the National Internal Revenue Code, which is a large part of why the programme compares well with a bank time deposit — interest on those is generally subject to final withholding tax. This calculator applies no tax either way: the figure it shows is the figure before any treatment, and it does not model the comparison.
₱500 per remittance. You can pay monthly, quarterly, annually, or make a single lump-sum deposit, and you can vary the amount between remittances. This page assumes a level contribution, which is the common case; if yours varies a lot, the projection is an approximation.
MP2 is a voluntary savings programme for Pag-IBIG members, and eligibility rests on your membership rather than on anything this calculator knows. Check the current requirements with Pag-IBIG before planning around a figure here.
The rate meets the average balance, never the closing one.
Exactly double, in year one. The gap narrows as the balance builds — the opening balance is never halved — but it never closes while you are still paying in.
A projection, not a forecast. The dividend rate is a figure you enter — Pag-IBIG declares the real one after each financial year, from the fund's net income, and has never guaranteed it. Nothing here is investment advice, and no part of this projection is promised by anyone. Nothing you type here is sent to our servers — the calculation runs entirely in your browser.
