How to Calculate Car Depreciation in Singapore: A Step-by-Step Guide
Works out the yearly depreciation buyers in Singapore use to compare used cars.
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
What you need
- Price you pay (S$)
- PARF + COE rebate at end (S$)
- Years of COE remaining
Step by step
- Enter the price you pay (S$).
- Enter the parf + coe rebate at end (S$).
- Enter the years of coe remaining.
- The results update as you type, or press Calculate.
- Read the annual depreciation first, then the supporting figures below it.
The formula
Depreciation = (price − rebates) ÷ remaining COE years.
Worked example
For example, with these inputs:
- Price you pay (S$): 120,000
- PARF + COE rebate at end (S$): 15,000
- Years of COE remaining: 9.5
the calculator returns:
- Annual depreciation: S$11,052.63
- Monthly depreciation: S$921.05
A second example
Now change the inputs to:
- Price you pay (S$): 150,000
- PARF + COE rebate at end (S$): 15,000
- Years of COE remaining: 9.5
the calculator returns:
- Annual depreciation: S$14,210.53
- Monthly depreciation: S$1,184.21
Practical tips
- Even small monthly contributions grow meaningfully over 20 years because of compounding.
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Check for early repayment penalties and processing fees before taking any loan.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
Background
An emergency fund of three to six months of essential expenses protects you from having to borrow at high rates when something unexpected happens. Once that buffer is in place, extra savings can go towards longer-term goals and investments.
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Related calculations
- Profit Margin Calculator: Calculates profit, margin and markup from cost and price.
- Markup Calculator: Finds the selling price from cost and markup.
- Discount Calculator: Works out sale prices during Great Singapore Sale, 11.11 and other promotions.
- Split the Bill Calculator: Splits a bill evenly.
Want to skip the arithmetic? The free Car Depreciation Calculator does all of this instantly and updates as you type.
Run your own numbers: Car Depreciation Calculator