Car Loan Calculator Singapore: Monthly Instalment and EIR
Including COE and taxes, as quoted by the dealer.
Loan
The rate the bank or dealer quotes. 2.5% is a placeholder assumption: replace it with your quote.
Downpayment
S$80,000
40% of the price
Total interest
S$21,000
over 7 years
Total repaid
S$141,000
84 instalments
Every tenure at this rate
Shorter loans cost more a month but much less interest.
| Tenure | Monthly | Interest |
|---|---|---|
| 1 year | S$10,250 | S$3,000 |
| 2 years | S$5,250 | S$6,000 |
| 3 years | S$3,583 | S$9,000 |
| 4 years | S$2,750 | S$12,000 |
| 5 years | S$2,250 | S$15,000 |
| 6 years | S$1,917 | S$18,000 |
| 7 years | S$1,679 | S$21,000 |
A flat rate is charged on the original loan for the whole tenure, even as you pay it down, so the effective interest rate (EIR) is close to double. Compare loans on EIR. Early repayment usually carries a fee: ask the lender how it is worked out.
Monthly instalment
S$1,679
- Effective interest rate (EIR)
- 4.79%
- Flat rate
- 2.50%
- Total interest
- S$21,000
- Downpayment
- S$80,000
- Loan 85%
- Interest 15%
How this works
MAS limits car financing by the car's open market value (OMV). If the OMV is S$20,000 or less you can borrow up to 70% of the purchase price; above S$20,000, up to 60%. The purchase price includes taxes and the COE. The longest tenure allowed is 7 years. These limits have applied since May 2016 and cover new and used cars.
Car loans in Singapore are usually quoted at a flat rate: interest = loan × flat rate × years, charged on the original amount for the whole tenure. Monthly instalment = (loan + interest) ÷ number of months.
Because you pay interest on money you have already repaid, the effective interest rate (EIR) is higher. The tool finds the monthly rate at which the instalments repay the loan exactly and annualises it as (1 + monthly rate)^12 − 1. The default 2.5% flat rate is an assumption: replace it with the rate you are quoted.
FAQs
How much can I borrow for a car in Singapore?
Up to 60% of the purchase price if the car's OMV is above S$20,000, or 70% if it is S$20,000 or less. On a S$200,000 car with OMV above S$20,000, the maximum loan is S$120,000 and you pay at least S$80,000 upfront.
What is the monthly instalment on a S$120,000 car loan?
S$1,678.57 a month over 7 years at 2.5% flat. Total interest is S$21,000 (S$120,000 × 2.5% × 7), and the effective interest rate is about 4.79% a year.
What is the difference between flat rate and EIR?
A flat rate charges interest on the full original loan every year; EIR reflects that the balance falls as you repay. A 2.78% flat rate over 7 years works out to an EIR of about 5.31%, so compare loans on EIR.
What is the maximum car loan tenure in Singapore?
7 years, under MAS rules for motor vehicle loans. A shorter tenure means higher instalments but less interest: S$120,000 at 2.5% flat costs S$9,000 in interest over 3 years versus S$21,000 over 7.