How to Calculate Loan in Singapore: A Step-by-Step Guide
Calculates repayments for an amortising loan.
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
- Loan amount (S$)
- Interest rate (% a year)
- Term (years)
Step by step
- Enter the loan amount (S$).
- Enter the interest rate (% a year).
- Enter the term (years).
- The results update as you type, or press Calculate.
- Read the monthly payment first, then the supporting figures below it.
The formula
PMT = P × r ÷ (1 − (1 + r)^−n).
Worked example
For example, with these inputs:
- Loan amount (S$): 20,000
- Interest rate (% a year): 6
- Term (years): 5
the calculator returns:
- Monthly payment: S$386.66
- Total interest: S$3,199.36
A second example
Now change the inputs to:
- Loan amount (S$): 25,000
- Interest rate (% a year): 6
- Term (years): 5
the calculator returns:
- Monthly payment: S$483.32
- Total interest: S$3,999.20
Practical tips
- Use realistic return assumptions; long-term projections at high rates can be very misleading.
- Check for early repayment penalties and processing fees before taking any loan.
- Keep three to six months of expenses in an easy-access account before investing aggressively.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
Background
Compounding is the reason long-term saving works: returns earn further returns, so the growth curve steepens over time. The same maths works against you with debt, which is why credit card balances at around 27% a year grow quickly if only minimum payments are made.
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
- Maximum Car Loan Calculator: MAS rules cap car loans at 70% of the price if OMV is S$20,000 or less, and 60% if OMV is higher, with a maximum tenure of 7 years.
- Additional Registration Fee (ARF) Calculator: Calculates the tiered ARF for cars registered in Singapore.
- Car Depreciation Calculator: Works out the yearly depreciation buyers in Singapore use to compare used cars.
- Personal Loan Calculator (Flat Rate): Singapore banks advertise personal loans at flat rates.
Want to skip the arithmetic? The free Loan Calculator does all of this instantly and updates as you type.
Run your own numbers: Loan Calculator