# Car Loan Calculator Singapore: Monthly Instalment and EIR

Your Singapore car loan: the MAS maximum (60% or 70% by OMV), monthly instalment, total interest and the effective interest rate behind a flat rate.

Interactive tool: https://lookup.sg/tools/car-loan-calculator

## 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.

## Sources
- [MAS: Motor vehicle loans](https://www.mas.gov.sg/regulation/explainers/motor-vehicle-loans)
- [MAS: MAS eases rules on motor vehicle financing (2016)](https://www.mas.gov.sg/news/media-releases/2016/mas-eases-rules-on-motor-vehicle-financing)

---
Source: Lookup (https://lookup.sg) · Data as of October 2026 · Listings compiled from Singapore government open data (data.gov.sg), OneMap and Overture Maps places. Free listings never show contact details; contact details appear only on Lookup Verified listings.