How to Calculate Home Loan (Mortgage) in Singapore: A Step-by-Step Guide
Estimates monthly repayments on a bank home loan for private property or HDB flats.
Property is the largest purchase most Singaporeans make, and stamp duties, loan limits and cash requirements are front-loaded. Small mistakes in these figures can mean a shortfall at completion, so it pays to run the numbers before you commit to an option to purchase.
What you need
- Loan amount (S$)
- Interest rate (% a year)
- Loan tenure (years)
Step by step
- Enter the loan amount (S$).
- Enter the interest rate (% a year).
- Enter the loan tenure (years).
- The results update as you type, or press Calculate.
- Read the monthly instalment first, then the supporting figures below it.
The formula
Monthly instalment = P × r ÷ (1 − (1 + r)^−n).
Worked example
For example, with these inputs:
- Loan amount (S$): 800,000
- Interest rate (% a year): 2.8
- Loan tenure (years): 30
the calculator returns:
- Monthly instalment: S$3,287.16
- Total interest: S$383,376.00
- Total repaid: S$1,183,376.00
A second example
Now change the inputs to:
- Loan amount (S$): 1,000,000
- Interest rate (% a year): 2.8
- Loan tenure (years): 30
the calculator returns:
- Monthly instalment: S$4,108.94
- Total interest: S$479,220.00
- Total repaid: S$1,479,220.00
Practical tips
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
- Stamp duty is based on the purchase price or market value, whichever is higher.
- A second housing loan drops the LTV limit sharply and raises the minimum cash downpayment to 25%.
- Stamp duty must be paid within 14 days of signing, so have the cash ready before you exercise the option.
Background
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
Related calculations
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
Want to skip the arithmetic? The free Home Loan (Mortgage) Calculator does all of this instantly and updates as you type.
Run your own numbers: Home Loan (Mortgage) Calculator