How to Calculate ROI in Singapore: A Step-by-Step Guide
Measures the return on an investment as a percentage.
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
- Amount invested (S$)
- Amount returned (S$)
Step by step
- Enter the amount invested (S$).
- Enter the amount returned (S$).
- The results update as you type, or press Calculate.
- Read the profit first, then the supporting figures below it.
The formula
ROI = (return − cost) ÷ cost × 100.
Worked example
For example, with these inputs:
- Amount invested (S$): 10,000
- Amount returned (S$): 12,500
the calculator returns:
- Profit: S$2,500.00
- Return on investment: 25.00%
A second example
Now change the inputs to:
- Amount invested (S$): 12,500
- Amount returned (S$): 12,500
the calculator returns:
- Profit: S$0.00
- Return on investment: 0.00%
Practical tips
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
- Check for early repayment penalties and processing fees before taking any loan.
- Factor in inflation when you plan for goals that are many years away.
- Keep three to six months of expenses in an easy-access account before investing aggressively.
Background
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
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.
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.
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.
- Loan Calculator: Calculates repayments for an amortising loan.
Want to skip the arithmetic? The free ROI Calculator does all of this instantly and updates as you type.
Run your own numbers: ROI Calculator