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Correction — September 6, 2026: The earlier version confused the earnings year of a dividend announcement with a future rate and presented inconsistent savings projections. This page now explains a clearly hypothetical calculation. It is a worked example, not an official Pag-IBIG calculator or a quotation of future returns.
An MP2 savings estimate depends on how much you contribute, when each payment is credited, the dividend rates declared for each year and whether dividends remain in the account. A historical rate must not be treated as a fixed five-year promise.
What this calculation assumes
- One payment at the beginning of each month, for 60 months.
- A hypothetical 6% annual dividend in every year, with annual compounding.
- No withdrawals, missed payments or fees in the model.
- Dividends from previous years remain invested; calculations use unrounded balances.
These assumptions simplify the calculation. Actual payment posting, qualifying balances and declared rates can produce different results. Check the official MP2 terms and your account records.
Five-year savings examples
| Monthly payment | Total contributions | Modeled dividends | Modeled closing balance |
|---|---|---|---|
| ₱500 | ₱30,000 | ₱4,921.79 | ₱34,921.79 |
| ₱1,000 | ₱60,000 | ₱9,843.58 | ₱69,843.58 |
| ₱3,000 | ₱180,000 | ₱29,530.75 | ₱209,530.75 |
| ₱5,000 | ₱300,000 | ₱49,217.91 | ₱349,217.91 |
These are scenarios, not forecasts. At a hypothetical zero dividend, the closing balance would equal contributions in this no-fee model. Lower positive rates reduce the modeled earnings; higher rates increase them. The contribution amount should come from your budget and time horizon, not from the appeal of the projected total.
How to reproduce the calculation
Let M be the monthly payment, B the opening balance for a year and r that year’s assumed annual dividend rate written as a decimal. Beginning-of-month payments have time weights from 12/12 to 1/12 of a year. Their sum is 6.5.
Year’s modeled dividend = (B + M × 6.5) × r.
Year-end balance = B + 12 × M + year’s modeled dividend.
Start the first year with B = 0, then carry each closing balance into the next year. For a ₱500 monthly payment at 6%, the first-year dividend is (0 + ₱500 × 6.5) × 0.06 = ₱195. The first-year closing balance is ₱6,195. Repeat for five years, rounding only for display. Our main MP2 guide shows the annual balances for the ₱5,000 example.
Which dividend year should you use?
The 7.12% MP2 dividend announced in 2026 covered the 2025 earnings year, as reported by the Philippine Information Agency. It does not establish the 2026 earnings-year rate or the rates over your next five years. Use hypothetical rates when planning and label them accordingly.
Annual payout and irregular contributions
This table assumes dividends remain invested. If dividends are paid out annually, do not count them both as money withdrawn and as part of the account’s compounded closing balance. If payments are irregular, a fixed monthly model no longer describes your deposit timing. Recalculate against the actual payment schedule and Pag-IBIG’s rules.
Before you commit savings
Read the MP2 program guide for eligibility, the five-year term, enrollment and withdrawal considerations. Keep money needed for immediate expenses accessible. Use the OFW Money Starter Kit to organize your budget before choosing a contribution.
General educational information only, not personalized financial advice. This simplified model is not endorsed by Pag-IBIG Fund and does not guarantee a return.
