How to Calculate Property Affordability in Singapore: A Step-by-Step Guide
Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
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
- Gross monthly income (S$)
- Existing monthly debts (S$)
- Stress-test interest rate (%)
- Loan tenure (years)
Step by step
- Enter the gross monthly income (S$).
- Enter the existing monthly debts (S$).
- Enter the stress-test interest rate (%).
- Enter the loan tenure (years).
- The results update as you type, or press Calculate.
- Read the maximum monthly instalment first, then the supporting figures below it.
The formula
Max loan = present value of (55% × income − debts) over the tenure at the stress-test rate.
Worked example
For example, with these inputs:
- Gross monthly income (S$): 12,000
- Existing monthly debts (S$): 500
- Stress-test interest rate (%): 4
- Loan tenure (years): 30
the calculator returns:
- Maximum monthly instalment: S$6,100.00
- Maximum loan (TDSR): S$1,277,713.57
- Price supported at 75% LTV: S$1,703,618.09
A second example
Now change the inputs to:
- Gross monthly income (S$): 15,000
- Existing monthly debts (S$): 500
- Stress-test interest rate (%): 4
- Loan tenure (years): 30
the calculator returns:
- Maximum monthly instalment: S$7,750.00
- Maximum loan (TDSR): S$1,623,324.61
- Price supported at 75% LTV: S$2,164,432.82
Practical tips
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
- Stamp duty must be paid within 14 days of signing, so have the cash ready before you exercise the option.
- HDB loans are capped at 25 years and must be fully repaid by age 65.
Background
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
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.
Most Singaporeans live in HDB flats, which can be financed with an HDB concessionary loan at 0.1% above the CPF Ordinary Account rate or with a bank loan. Private property must be financed with a bank loan, and banks offer fixed, floating and SORA-pegged packages.
Related calculations
- Additional Buyer's Stamp Duty (ABSD) Calculator: Calculates ABSD by buyer profile and the number of residential properties owned, using the rates in force since 27 April 2023.
- Total Property Stamp Duty Calculator: Adds BSD and ABSD together so you know the full stamp duty bill before you sign an option to purchase.
- Seller's Stamp Duty (SSD) Calculator: Calculates SSD for residential property bought on or after 4 July 2025 and sold within four years.
- HDB Loan Calculator: Calculates monthly repayments on an HDB concessionary loan, which is pegged at 0.1% above the CPF Ordinary Account rate (2.6% a year).
Want to skip the arithmetic? The free Property Affordability Calculator does all of this instantly and updates as you type.
Run your own numbers: Property Affordability Calculator