How to Calculate Maximum Car Loan in Singapore: A Step-by-Step Guide
MAS rules cap car loans at 70% of the price if OMV is S$20,000 or less, and 60% if OMV is higher, with a maximum tenure of 7 years.
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
What you need
- Open Market Value (OMV) (S$)
- Purchase price (S$)
Step by step
- Enter the open market value (OMV).
- Enter the purchase price (S$).
- The results update as you type, or press Calculate.
- Read the maximum loan first, then the supporting figures below it.
The formula
Max loan = price × 70% (OMV ≤ S$20,000) or 60% (OMV > S$20,000).
Worked example
For example, with these inputs:
- Open Market Value (OMV) (S$): 25,000
- Purchase price (S$): 140,000
the calculator returns:
- Maximum loan: S$84,000.00
- Minimum downpayment: S$56,000.00
A second example
Now change the inputs to:
- Open Market Value (OMV) (S$): 31,250
- Purchase price (S$): 140,000
the calculator returns:
- Maximum loan: S$84,000.00
- Minimum downpayment: S$56,000.00
Practical tips
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Even small monthly contributions grow meaningfully over 20 years because of compounding.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
- Keep three to six months of expenses in an easy-access account before investing aggressively.
Background
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.
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.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
Related calculations
- Emergency Fund Calculator: Sets a target for your rainy-day savings.
- Net Worth Calculator: Adds up what you own minus what you owe.
- Debt-to-Income Ratio Calculator: Shows what share of income goes to debt.
- Rule of 72 Calculator: Estimates how long money takes to double.
Want to skip the arithmetic? The free Maximum Car Loan Calculator does all of this instantly and updates as you type.
Run your own numbers: Maximum Car Loan Calculator