ROI in Singapore: Your Questions Answered
These are the questions people ask most often about roi. Each answer is short; follow the links for the full detail.
What does a roi calculation tell me?
Measures the return on an investment as a percentage.
What is the formula?
ROI = (return − cost) ÷ cost × 100.
What do I need to enter?
Amount invested (S$), Amount returned (S$).
Is this financial advice?
No. It is a calculation tool. For decisions about loans or investments, compare official offer documents and consider speaking to a licensed adviser.
Can you show an 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%
Any tips?
- Car loans are capped at seven years, and interest is charged on the original amount for the whole term.
- Keep three to six months of expenses in an easy-access account before investing aggressively.
- Factor in inflation when you plan for goals that are many years away.
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.
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.
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.
- Loan Calculator: Calculates repayments for an amortising loan.
Try it yourself with the ROI Calculator.
Run your own numbers: ROI Calculator