How to compute Pag-ibig MP2 dividends?

how to compute pag-ibig MP2 dividends

If you already read my post about Pag-ibig MP2 and how to maximize it, then you might be wondering how the computations were done. I’ll be honest, it took me a while to understand it, and you’ll know why later. But after several hours, now I can confidently share with you how to compute Pag-ibig MP2 dividends.

What are the things to prepare?

It is just my recommendation to you so that you’ll have an easier time following the steps. Actually, you may skip this part, but trust me, it could save you more time and some brain cells too.

  1. Pen and paper
  2. Calculator
  3. Excel Sheet or Google Sheet
  4. Simple and compound interest formula

If you’ll go for the manual method, prepare a pen and paper so you can easily jot down the results. You may use any calculator, but a scientific calculator is more efficient, especially if you know how to use the summation function.

You may also use an Excel sheet to make the job easier. But remember to familiarize yourself with the simple and compound interest formulas.

How to compute Pag-ibig MP2 dividends?

What I’ll be showing you is the computation for the examples provided by Pag-ibig on its official website. The dividend rate used is 7.5%. Again, it is just an example because the actual dividend rate will still depend on the actual performance of the Pag-ibig fund.

However, for your personal computations, you may use the average dividend rate for the past 5 years.

READ: 5 Steps to Achieve Financial Freedom

So here’s how to compute for Pag-ibig MP2 dividends.

1. Monthly contribution with yearly dividend payout

You’ll earn Php 5,718.75 if you will continuously invest Php 500 per month for the next 5 years and opted for the yearly dividend payout. That’s around 19% of earnings from your total capital of Php 30,000.


Monthly Savings (MS) Accumulated MS per Year Cumulative Savings Annual Dividend Payout Total Accumulated Value TAV)
1 500 6,000 6,000 243.75 6,000
2 500 6,000 12,000 693.75 12,000
3 500 6,000 18,000 1,143.75 18,000
4 500 6,000 24,000 1,593.75 24,000
5 500 6,000 30,000 2,043.75 30,000
TOTAL 30,000.00 5,718.75 30,000

Now, let’s compute for the yearly Pag-ibig MP2 dividends.

I prepared a table below so you can visualize how it is done.


1st Year 2nd Year 3rd Year 4th Year 5th year
January 500 6,500 12,500 18,500 24,500
February 1,000 7,000 13,000 19,000 25,000
March 1,500 7,500 13,500 19,500 25,500
April 2,000 8,000 14,000 20,000 26,000
May 2,500 8,500 14,500 20,500 26,500
June 3,000 9,000 15,000 21,000 27,000
July 3,500 9,500 15,500 21,500 27,500
August 4,000 10,000 16,000 22,000 28,000
September 4,500 10,500 16,500 22,500 28,500
October 5,000 11,000 17,000 23,000 29,000
November 5,500 11,500 17,500 23,500 29,500
December 6,000 12,000 18,000 24,000 30,000
TOTAL 39,000 111,000 183,000 255,000 327,000
AVERAGE 3,250 9,250 15,250 21,250 27,250
DIVIDEND 243.75 693.75 1,143.75 1,593.75 2,043.75

The first step is to get the Average Accumulated Monthly Savings (AAMS) for each year. Secondly, use the simple interest formula to get the dividends. It is done by multiplying the result from the first step by the dividend rate.

If you forgot, the formula is “I = Prt.”

I= interest earned
r= rate of interest per year
t= time

In this case, “t” is equal to one since we will compute the yearly dividends.

So, for example, in the first year, the AAMS is equal to Php 3,250. And then, multiply it by the dividend rate of 7.5%. The result is the dividend for the first year, which is 243.75.

The dividends for the succeeding years are computed in the same way. I’ll just leave it with you as an exercise.

2. Monthly contribution with compounded savings

It is where things can get a little complicated if you opt for a monthly contribution with compounded savings. But fret not, I have a clear demonstration of how to get the numbers.

RELATED: The Rule of 72 | Compounding of Interest Made Easy

Year Monthly Savings (MS) Accumulated MS per Year Cumulative Savings Dividend Amount Total Accumulated Value (TAV)
1 500.00 6,000.00 6,000.00 243.75 6,243.75
2 500.00 6,000.00 12,243.75 712.03 12,955.78
3 500.00 6,000.00 18,955.78 1,215.43 20,171.21
4 500.00 6,000.00 26,171.21 1,756.59 27,927.81
5 500.00 6,000.00 33,927.81 2,338.34 36,266.14
TOTAL 30,000.00 6,266.14 36,266.14

The general idea is, in the first year, you’ll just compute for the simple interest earned. In the second and succeeding years, you have to get the simple interest for that year and the interest from the previously earned dividends.

Thus, it is called compounding interest because your interest gets to earn interest.

But before the computation, here is the summary of dividends in the first example:

  1. 243.75
  2. 693.75
  3. 1,143.75
  4. 1,593.75
  5. 2,043.75

Again, the dividend in the first year is Php243.75. It is the same as the first example.

In the second year, it will be the 2nd year dividend from the first example plus the interest earned from the dividend in the first year. So here’s how it will look in an equation.

2nd-year dividend = Php693.75 + (Php243.75)*0.075 = Php712.03

In the 3rd year, it will be the 3rd year dividend from the first example plus the interest earned from the first and second-year dividends.

3rd-year dividend = Php1,143.75 + (Php712.03 + Php243.75) * 0.075 = Php1,215.43

Again, I will just leave the remaining years as an exercise.

3. One-time contribution with yearly dividend payout

If you are planning to make a one-time investment with a yearly dividend payout, then this computation can help you forecast your earnings in the next 5 years.

Year Monthly Savings (MS) Accumulated MS per Year Cumulative Savings Annual Dividend Payout Total Accumulated Value TAV)
1 1,000,000 1,000,000 1,000,000 75,000 1,000,000
2 0 0 1,000,000 75,000 1,000,000
3 0 0 1,000,000 75,000 1,000,000
4 0 0 1,000,000 75,000 1,000,000
5 0 0 1,000,000 75,000. 1,000,000
TOTAL 1,000,000.00 375,000 1,000,000

It is the most simple and straightforward computation. You will just have to multiply the capital by the dividend rate.

So, in this example, the dividend is equal to Php 75,000.

As you can see, the dividend for each year is the same because the Total Accumulated Value (TAV) stays the same. It is a different case if you choose to compound your savings.

4. One-time contribution with compounding savings

If you read my article on how you can maximize the Pag-ibig MP2 dividends, you will know that this computation will give you the highest earnings.

Basically, there are two key points behind it.

  • The capital is already earning the full dividend rate for each year. Unlike monthly savings, where you will only get a fraction of the rate for each monthly contribution.
  • The interest gets to earn interestcompound interest.
Year Monthly Savings (MS) Accumulated MS per year Cumulative Savings Dividend Amount Total Accumulated Value TAV)
1 1,000,000 1,000,000 1,000,000 75,000 1,075,000
2 0 0 1,075,000 80,625 1,155,625
3 0 0 1,155,625 86,672 1,242,297
4 0 0 1,242,297 93,172 1,335,469
5 0 0 1,335,469 100,160 1,435,629
TOTAL 1,000,000 435,629 1,435,629.33

READ: 5 Strategies to Get the Most Out of Pag-IBIG MP2

Now, we’ll use the compound interest formula to compute the dividends.

So here’s the formula.

FV = PV (1 + r) ^ t

FV = Future Value
PV = Present Value
r = rate of interest per year
t = number of periods lapsed (no. of years)

Let’s use it to compute the future value of your one-time investment after 5 years.

FV = 1,000,000 * (1 + 0.075) ^ 5 = Php 1,435,629.33

It is a growth of 43.6% on your capital compared to 37.5% if you opt to get your dividends each year.

You might be thinking, “The difference is small.”

It is true. But, it is still a 6.1% difference.

However small, the difference will become more evident if you are planning to invest beyond 5 years.

Happy investing 🙂

GET NOW: Pag-IBIG MP2 Calculator | A Must-Have Toon in Investing For MP2


73 comments… add one
  • Mary Anne Link Reply

    Can you give me a computation for one time savings of 500k? Thank you sir.

  • khaye Link Reply

    If nagstart ako ng 500 Monthly contribution ng May 2017, ang 5th year ko is April 2022. Please show po ang computation ng dividend for the 5th yr since 4 months na lang yun contribution ko. let say the interest is 6% for 2022. Thanks.

    • It’s actually answered in the comment section. When it comes to the computation, you may refer to the steps above.

  • Irish Link Reply

    Hi guys! Gumawa ako ng Google Sheet computation for Monthly contribution with compounded savings based dito sa explanation ni Sir The Wise Guy. Eto yung link:

    All you have to do is input your desired monthly savings amount.

  • last December 2, 2019 nag deposit ako ng 30k sa MP2 tama ba na 3,949 lang ang tubo? Baka pwede ma explain pano na-compute yung 3949? Salamat

  • coleto Link Reply

    Hi Sir,

    Thanks for the great explanation, I have one question about the maturity

    I started contributing to MP2 last June 2022, I understand that the maturity will be on June 2027. They usually announce the previous year’s dividend rate in the month of March, below are two scenarios that I want to clarify.

    Maturity: June 2027

    Collection date 1 (July 2027)
    – Will I be getting dividend earnings from Jan 2027 – Jun 2027 using the MP2 2026 rate?

    Collection date 2 (Dec 2027)
    – Will I be getting dividend earnings from Jan 2027 – Jun 2027 using MP2 2026 rate than July 2027 – Dec 2027 using the P1 2026 rate?

  • CJ Asido Link Reply

    I started saving in MP2 in Nov2021. I remitted the ff: P46,000-Nov, P500-Dec. The dividend I received was P235. No matter how I compute I cannot arrived at P235. May you enlighten me?

    • I got 232.5 using our Pag-IBIG MP2 Calculator. Keep in mind that there’s a slight deviation from the actual result because of the way it was computed. Nonetheless, it’s very useful to predict, project, and keep track of your contributions.

      Btw, if you’re doing manual calculations, it will be based on a daily accumulation. So if you have invested, let’s say last November 30, you’ll only get one day’s worth of interest for that month instead of one whole month’s worth of interest.

      • CJ Asido Link Reply

        I am satisfied with the explanation since I made the payment late in November. My other concern is Pag-IBIG announced two dividend rates for the year 2021(based on my google search) – 5.66% and 6%. May you share the link where to get the final figure?

  • Hi Sir Federico!
    Can pay one time payment no monthly contribution then wait for it’s maturity?

  • Keith Link Reply

    When you said quote ” it is still a 6.1% difference.” May i know what are you comparing with?

    • Hi, Keith! It’s the comparison between annual payout and compounded payout for a one-time investment of Php 1M.

  • Ken Link Reply

    Can you clarify this scenario:

    The dividend rate for 2021 was recently declared at 5.66%, which I believe shall apply to the total contributions made in 2021. What if the MP2 matures in March 2022, what rate shall be used in the computation from January to March, 2022?

    • As mentioned by Pag-IBIG, the dividend on the 5th year will be the dividend rate from the previous year or the latest available dividend rate.

  • mel Link Reply

    hi Sir gonna ask lang If I choose annually dividend payout does it mean I will get annual dividend for 5 years? or just that for only 1 year? sorry I’m kind of confuse hehe

  • Yves Link Reply

    Hi sir. On your TABLE 2 where contribution of 500 per month were listed down, how come the total contribution for year 1 is 39000? Isn’t it just 6000? And since the dividend is computed to the average contribution the dividend would be based on 500, hence,
    Y1 = 37.5php
    Y2 = 75.23
    Y3 =113. 20
    Y4 = 151. 41
    Y5 = 227.36

    So total earning for 5 yrs would 604.70 pesos. Please correct me sir if i did not get it.

    • All the results shown in this blog are actually based on the official pub mat released by Pag-IBIG. You can check the validity of the computation versus the said material.

      The computation is simple but rather tricky. The “total” I was referring to was the total accumulated monthly savings. You just have to know your cumulative investment every month,

      So for example, you saved 500 per month then for the month of January your cumulative investment is 500. By February, it will be 500 from January PLUS your new investment of 500, i.e. Php 1000. For March it will be Feb plus 500 or simply 1,500 and so on. Now, when you finished the year, add the cumulative monthly investment.

      500 + 1000 + 1,500 + 2,000 + 2,500 + … = 39,000

      Then get the average by dividing 39,000 by 12 (months).

      Why are we doing this? Because your money is compounded monthly. Oops…I think this will get a bit more technical. I’m planning on creating a video about this and I’ll also release a Pag-IBIG MP2 calculator.

      But for now, I hope it helped you. Thanks 🙂

  • arnel vera Link Reply

    If for example my monthly savings is 1000, can I deposit 2000 on the second month?

  • Iya Link Reply

    Sir, can I still add my contribution even when I did a One-time payment of MP2 savings

    • Hi Iya. Yes, you may add at any time. One-time payment is more of a personal choice. In reality, you may add at any time within the 5 yrs term.

  • Kat Canlapan Link Reply

    Hi sir. What if I made a one time contribution every year? For example, i invested 50k for jan 2021, then another 50k in jan 2022, 2023, 2024, 2025. Is this possible?

  • Mylen Link Reply

    Hi Sir Federico. I would like to ask for the recommendation which is a better option between one-time payment, annually, or monthly payment every year? Thank you so much!

  • Thessa Obdamen Link Reply

    Hi Sir Federico. How to compute the dividend let’s say I started saving in February, but I failed to deposit for the month of April, but on the next month (May), I deposited an amount that will cover both April and May.

    I tried to create an Excel file for this, but the dividend that reflect on my virtual Pag Ibig is not tally, compared to the dividend that was generated on the Excel file. By the way, I followed the steps/computation here.

    • Hi Thessa. It should be the same. Of course, just put zero if you missed any month and if you add more then indicate the additional investment. Just follow the steps and you should be able to compute for the dividends. Thanks 🙂

  • July Dafyu Link Reply

    Hi Sir. You gave an example of 7.5% rate throughout 5 years. However, for Compound Savings for 5 years, I started saving on PAGIBIG way past 2016 which has a rate of 7.43% and 2017 – 8.11%.

    Base on your computation for Compound Savings of 5 years, what rate will I use? Is it 7.43% throughout 2016-2021? Or is it based on yearly dividend rate? Thank you for your answer.

    • Hi July. It will actually depend on you. As mentioned, the computations are only made to forecast the investment return. So you may use any rate you are most comfortable with, be it the 7.5% or the average rate for the past 5 years. The examples here with a 7.5% rate are only aligned to the official samples shared by Pag-ibig. Thanks 🙂

  • Marits DV Link Reply

    Wow your a math genius…

  • Paulo Aquino Hernandez Link Reply

    Hello Sir,

    I deposited my first MP2 contribution last May 2019, then I stopped. I just made another contribution to my MP2 account just this month, January 2021.

    The maturity year remains to be 2024, 5 years after 2019, is that correct?

    The crediting of the annual dividends will also be the same, every month of May?

    That means, anything I saved during the 5-year period will be available for withdrawal on May 2024?

    Thanks in advance 🙂

  • Joanne Cabadido Link Reply

    Hi Sir Federico. I started to open my mp2 account last Dec. 2019. The last year 2020 I saw how much dividend I earned from the year 2019. And I continue to save from January, March, and December 2020 with different amounts. I am checking on the Pag-ibig virtual how much dividend I earned for the year 2020 but it didn’t show. Is there a another possible way for me to check my dividend from my previous year? Thank you.

    • Hi Joanne. You should see it once it is available. The dividend rate for 2020 was only announced this March 2021. Thanks 🙂

  • Roberto Link Reply

    Hi Sir Federico, if I start off with a lump sum of 100,000, can I top-up anytime or do I need to enroll in another savings account? Tnx.

  • Joel Dorego Link Reply

    When I opened an MP2 account two years ago, it was not specified if the dividends would be withdrawn annually or after 5 years…I continue contributing, anyways… what’s your take on this, sir?

    • Hi Joel. You may visit your portal to check which one is elected. Maybe you forgot what you’ve chosen since it has been 2 years 🙂

  • Cynthia D. Trobanos Link Reply

    How can I see the computation in MP2, example if I invest 100,000 . I want to see the divident of this amount .

    Thank you

    • Hi Cynthia. You have to compute it yourself just follow the steps presented here. As mentioned, you will also make an assumption of the average return that you will be using for the computation whether it’s the last year’s return, the last 5 years, and so on. Thanks 🙂

    • Sheirly Marza Link Reply

      Hi Federico, I just want to ask if your monthly MP2 contribution is 500 the next mth you accumulate 1000, what if 1000 monthly the next mth is 2000? Thanks!

      • Yes, that’s how it should be 🙂

        If you are having trouble, you may watch our video or download our MP2 calculator.

  • Jhun Barrera Link Reply

    Hi Sir,

    For a Yearly Contribution, does it matter if you are going to put in the money one time is January or one time in June, or One time in December? Thanks!

    • Hi Jhun. You may start at any month. The only good thing about starting in January is that you’ll get a full year’s worth of dividend. Well, of course, aside from starting the year right. Thanks 🙂

  • Mac Binas Link Reply

    If I decide to invest a lump sum of Php 300,000 for the first month plus Php 5,000 and in the succeeding months you decide to add the same Php 5,000 monthly. How much would I get?

    • Hi Mac. You may follow the steps above. It’s fairly simple to do. Thanks 🙂

      • Joseph Galve Link Reply

        Yung interest na yan Sir bawas na ba ang tax dyan. Thanks.

        • The examples shown are only paralleled with the official samples released by Pag-ibig which are tax-free. Thanks 🙂

  • Jeah Link Reply

    Thanks, it helps a lot! Here’s the rest of the computation, not sure if I did it right.

    2nd-year dividend = Php693.75 + (Php243.75)*0.075 = Php712.03
    3rd-year dividend = Php1,143.75 + (Php712.03 + Php243.75) * 0.075 = Php1,215.43
    4th-year dividend = Php1,593.75 + (Php1,215.23 + Php712.03 + Php243.75) * 0.075 = Php1,756.59
    5th-year dividend = Php2,043.75 + (Php1,756.59 + Php1,215.23 + Php712.03 + Php243.75) * 0.075 = Php2338.34

  • Arnold Tiu Link Reply

    Hi Sir Federico. Could you illustrate monthly and yearly contributions with compounding savings whereas, the 1st month of the 1st year would have 100,000.00 and the succeeding 11 months each with 1,000.00. Say the subsequent 4 years, all with 1,000.00 monthly contributions. Thanks!

  • Charlene Link Reply

    Hi good day
    I started saving last sep and saves monthly
    Im planning this jan 2021 to make it yearly
    Is it possible?
    What should i put to the covered period jan 2021-jan2021 or jan2021 – dec 2021?

  • Marlon Link Reply

    “The first step is to get the Average Accumulated Monthly Saving (AAMS) for each year.
    So, for example, in the first year, the AAMS is equal to Php 3,250”

    I am lost here, u mention some steps. but no computation how. don’t understand how to derive it in the table also, kinda new. can explain how to get 3250?

    • Hi Marlon! You can get it using the arithmetic average or simply adding the monthly accumulated contribution. So for the first year, you add 500, 1000, 1500, …, 6000, and then divide the sum by 12. I hope it helped you. Thanks 🙂

      • Al Link Reply

        Hello Sir Federico I’ve noticed some of the people here like you to become their calculator. They don’t like to compute for themself.

        • Hi Al. Maybe because it’s a long read and to save time, they just tend to ask. However, investing is part of personal finance, and it’s something everyone should learn, especially if they’re planning to invest in MP2. Thanks, by the way 🙂

  • John Cruz Link Reply

    2. Monthly contribution with compounded savings
    The dividend earned in the first year is incorrect. If the rate used is 7.5% like the other samples, it should be 450 php and not 243.75 php. The dividend 243.75 php is computed at 4.06% rate only. Thanks!

    • Hi John. You’re correct, the dividend rate is 7.5% as mentioned. So how did I arrive with the 1st year dividend of Php243.75?

      The contribution is monthly, so for example, for the month of January you will get the full 7.5%, and it will only be 11/12 of 7.5% for February, 10/12 of 7.5% for March, and so on. It is why we cannot simply multiply the Php 6,000 by 7.5%. I hope it helped you. Thanks 🙂

      • Mark Angel Link Reply

        Hi Sir Federico. Does that mean I need to divide the 7.5% to 12. I’m getting lost. Can you show how you get 243.75?

        • Hi Mark Angel. The step to get the 243.75 is already there. You just have to follow it.

          1. Get the total for the first year which is 39,000.
          2. Compute for the average by dividing 39,000 by 12.
          3. Dividend is equal to Average Accumulated Monthly Saving (AAMS) multiplied by 7.5%

          I hope you can now paint the picture. Thanks 🙂

        • freya Link Reply

          hi sir, great explanation by the way. May question lang ako regarding payout. Can I change from annually to 5 year halfway in my investment time? Like what if out of a sudden gusto ko after 5 years ko nalang sya kunin pero annually yung naregister ko? Is it possible?

    • Joel Dorego Link Reply

      If I pawn a jewelry with a 3% interest and deposit the money in MP2, does it make sense, sir?

      • Hi Joel. I think the 3% interest you are talking about is monthly. So in a year that’s 36% vs. let say 7% of Pag-ibig MP2. I do not think it’s a good idea.

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