Personal Loan Calculator (Flat Rate)
Singapore banks advertise personal loans at flat rates. This shows the instalment and the effective interest rate.
Result
- Monthly instalment
- S$460.42
- Total interest
- S$1,575.00
- Effective interest rate
- 6.60%
How to use the personal loan calculator (flat rate)
- Enter the loan amount (S$).
- Enter the flat rate (% a year).
- Enter the term (years).
- The results update as you type, or press Calculate.
- Read the monthly instalment first, then the supporting figures below it.
Formula
Interest = P × flat rate × years; EIR is solved from the instalment stream.
Worked example
For example, with these inputs:
- Loan amount (S$): 15,000
- Flat rate (% a year): 3.5
- Term (years): 3
the calculator returns:
- Monthly instalment: S$460.42
- Total interest: S$1,575.00
- Effective interest rate: 6.60%
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.
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.
Frequently asked questions
How does the personal loan calculator (flat rate) work?
It applies this formula: Interest = P × flat rate × years; EIR is solved from the instalment stream.
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.