Singapore Car Loan Calculator
Singapore car loans use a flat interest rate — not a reducing balance — which means the true cost is higher than the advertised rate. Enter your vehicle price, down payment and OMV to see your MAS-compliant loan amount, monthly instalment, effective interest rate (EIR), and how your rate compares to the Singapore market average.
Enter Your Vehicle & Loan Details
Select new or used car, enter your vehicle price and down payment, and choose your OMV category to see your MAS-compliant loan amount and LTV instantly.
Set Your Flat Rate & Loan Tenure
Enter your flat rate to see the equivalent EIR, then choose your tenure — up to 7 years for new cars or 5 years for used cars per MAS rules.
See Your Full Instalment Breakdown
View your monthly instalment, total interest, EIR, year-by-year schedule, extra repayment savings, and side-by-side comparison against an alternative loan.
Car Loan Calculator
Monthly Instalment · Total Interest · EIR · MAS LTV Rules · 2025
Vehicle & Loan Details
Interest Rate & Loan Tenure
Loan Summary
Based on a vehicle price of S$120,000, a S$36,000 down payment, and a S$84,000 loan at 2.28% flat p.a. over 7 years.
Your monthly instalment is S$0. Over the full tenure you will pay S$0 in interest (flat rate), for a total repayment of S$0.
MoneySense — Understanding Car Loans | MAS — Car Loan LTV Rules | LTA — Buying a Vehicle
Last verified: March 2026 | MAS flat rate rules: OMV ≤ S$20k → 70% LTV · OMV > S$20k → 60% LTV
Repayment Schedule
Monthly repayment schedule under the flat rate method. Unlike a reducing-balance loan, the interest charged each month is constant — it is simply Total Interest ÷ Number of months. Annual summary rows are highlighted in purple.
Note: Extra repayment savings are estimated using effective interest rate equivalent calculations. Confirm early repayment terms with your lender. Per MoneySense.
| Period | Monthly Instalment | Principal | Interest | Balance |
|---|---|---|---|---|
| Calculating… | ||||
Interest Breakdown
With a flat rate loan, the interest charged each year is equal — it is a fixed portion of the original loan amount. This differs from a reducing-balance loan where interest falls as the principal decreases.
Annual Interest Paid
Principal vs Interest Split (Annual)
| Year | Opening Balance | Principal Paid | Interest Paid (flat) | Closing Balance |
|---|---|---|---|---|
| Calculating… | ||||
Rate Benchmark
Compare your flat rate and EIR against the Singapore market average for new and used car loans. Per MoneySense, always compare the EIR — not the flat rate — across different lenders for a fair comparison.
Flat Rate Comparison
MoneySense — Understanding Car Loans | MAS Interest Rate Statistics
Last verified: March 2026
Compare Two Loans
Loan A mirrors your main calculator. Enter Loan B's flat rate and tenure to compare costs side by side. Use the EIR column for a true apples-to-apples comparison.
Side-by-Side Comparison
| Metric | Loan A | Loan B | Difference |
|---|---|---|---|
| Flat Rate | — | — | — |
| EIR p.a. | — | — | — |
| Tenure | — | — | — |
| Monthly Instalment | — | — | — |
| Total Interest | — | — | — |
| Total Repaid | — | — | — |
Adjust Loan B settings to compare.
Both loans use the same principal. Per MoneySense, always ask lenders for the EIR — not just the flat rate — before making a decision.
For educational purposes only. Monthly instalments are calculated using the Singapore flat rate method: (Principal + Principal × Flat Rate × Years) ÷ (Years × 12). EIR is computed using a numerical solver. Actual instalments, fees, and terms will vary by lender. This calculator does not include administrative fees, processing charges, or any other lender-specific costs.
MAS LTV limits are based on vehicle type and OMV as of March 2026. Always verify the latest MAS rules and your lender's terms before committing. Not financial advice — consult a licensed financial adviser for your specific situation.
Maximize your CPF returns with strategic contributions. Calculate your CPF growth across OA, SA, and MA accounts with Singapore’s guaranteed interest rates up to 6%.
Car Loan Types in Singapore
Bank loans, in-house dealer financing, and hire purchase — all regulated by MAS LTV rules
According to MoneySense, all car loans in Singapore are subject to MAS-mandated loan-to-value (LTV) limits and maximum tenure rules. Unlike many other countries, Singapore car loans use a flat interest rate — not a reducing balance rate — which means the interest is fixed based on the original loan amount for the full tenure.
| Loan Type | Provider | Typical Flat Rate | Key Features |
|---|---|---|---|
| Bank Car Loan Most common | DBS, OCBC, UOB, Maybank, Standard Chartered | ~2.28% flat | Competitive rates. Fast online approval. Transparent EIR disclosure required by MAS. Suitable for new and used cars. |
| In-House Dealer Financing Via car dealer | Authorised dealers (e.g. Kah Motor, Cycle & Carriage) | ~2.28–3.5% flat | Convenient one-stop arrangement. Some dealers offer promotional rates (e.g. 0% for first year) — always check the full-term EIR. |
| Hire Purchase (HP) Finance company | Hong Leong Finance, Sing Investments & Finance | ~2.5–3.5% flat | Technically a hire purchase agreement — you hire the vehicle until all instalments are paid. Common for commercial vehicles. |
| Used Car Loan New or used car dealers | Banks or dealer-arranged | ~2.78% flat | Slightly higher rates than new car loans. Max tenure 5 years (MAS rule). LTV rules same as new cars based on OMV. |
✓ New Car Loan
- ✓Maximum tenure: 7 years (MAS rule)
- ✓Lower flat rate (~2.28% p.a.)
- ✓Full manufacturer warranty coverage
- ✓Higher COE value typically included in price
- –Higher purchase price (includes COE)
⚠ Used Car Loan
- ✓Lower purchase price overall
- ✓May have remaining COE life (check carefully)
- –Maximum tenure: 5 years only (MAS rule)
- –Slightly higher flat rate (~2.78% p.a.)
- –Check remaining COE life — affects resale value
Source: MoneySense — Understanding Car Loans | MAS — Car Loan LTV Rules
MAS LTV Rules & Loan Tenure Limits
How Open Market Value (OMV) determines your maximum loan — MAS-mandated rules
The MAS mandates maximum Loan-to-Value (LTV) ratios and maximum tenures for all car loans in Singapore. These rules apply to both bank loans and hire purchase agreements. The LTV cap is determined by the vehicle's Open Market Value (OMV) — a value set by Singapore Customs based on the price paid for the vehicle in its country of origin, before any Singapore taxes.
| OMV | Max LTV | Min Down Payment | Max Tenure (New) | Max Tenure (Used) |
|---|---|---|---|---|
| OMV ≤ S$20,000 Most mass-market cars | 70% | 30% | 7 years | 5 years |
| OMV > S$20,000 Most premium / luxury cars | 60% | 40% | 7 years | 5 years |
Worked example: A Toyota Corolla with OMV S$14,000 priced at S$120,000 (including COE): Max LTV = 70%, so max loan = S$84,000. Minimum down payment = S$36,000. A BMW 3-Series with OMV S$32,000 priced at S$190,000: Max LTV = 60%, so max loan = S$114,000. Minimum down payment = S$76,000. The OMV is shown on the vehicle's LTA registration documents.
Why does OMV matter? OMV determines not just the LTV limit but also the Additional Registration Fee (ARF), which is levied by LTA at a percentage of the OMV. The ARF forms part of the vehicle's registration cost and is separate from the COE. A lower OMV generally means lower ARF and a higher permissible LTV. Source: LTA — Buying a Vehicle.
Source: MAS — Measures to Encourage Financial Prudence Among Car Buyers | LTA — Buying a Vehicle
Flat Rate vs Effective Interest Rate (EIR)
Why Singapore's car loan rates look low — and how to compare lenders fairly
Singapore car loans advertise a flat rate — but the true cost of the loan is the Effective Interest Rate (EIR). The flat rate applies the interest to the original loan amount for every month of the tenure, even as you pay down the principal. The EIR reflects the actual cost per period on the outstanding balance — and is typically 1.8–2× the flat rate for a 5–7 year loan. According to MoneySense, lenders are required to disclose the EIR — always compare EIRs across lenders, not flat rates.
The flat rate formula calculates the monthly payment by spreading the principal and all interest equally across the tenure.
P = principal | r = annual flat rate (decimal) | n = years. Interest is fixed per month regardless of remaining balance.
Total interest is simply the flat rate applied to the full principal for the full tenure — a straightforward linear calculation.
On S$84,000 at 2.28% flat over 7 years: Total Interest = S$84,000 × 2.28% × 7 = S$13,402
The EIR is derived by finding the reducing-balance rate that produces the same monthly payment as the flat rate calculation.
EIR ≈ flat rate × 1.8 to 2.0 (varies by tenure). This cannot be solved algebraically — requires numerical methods.
Reverse flat rate calculation — finds the maximum principal for a given monthly budget, flat rate, and tenure.
Budget = max monthly instalment | r = flat rate (decimal) | n = years
| Flat Rate | Tenure | Approx EIR | Total Interest (S$84k loan) |
|---|---|---|---|
| 2.28% flat | 5 years | ~4.20% | S$9,576 |
| 2.28% flat | 7 years | ~4.25% | S$13,406 |
| 2.78% flat | 5 years | ~5.13% | S$11,676 |
| 2.78% flat | 7 years | ~5.19% | S$16,346 |
| 3.50% flat | 7 years | ~6.50% | S$20,580 |
EIRs are approximate — computed via numerical solver. Actual EIR will also reflect lender fees and charges. Source: MoneySense.
COE & OMV — What They Are and Why They Matter
Singapore's unique vehicle entitlement system and how it affects your car loan
Singapore's vehicle ownership costs are significantly higher than in most countries due to two unique mechanisms: the Certificate of Entitlement (COE) and taxes based on the Open Market Value (OMV). Both affect your effective car price and therefore the loan amount. Source: LTA — Buying a Vehicle.
| Component | What It Is | Who Sets It | Impact on Car Loan |
|---|---|---|---|
| COE (Certificate of Entitlement) | A bidding entitlement giving the right to own and use a vehicle in Singapore for 10 years. Must be renewed or the car must be scrapped after 10 years. | LTA via bidding exercise | COE is included in the drive-away price and therefore included in your loan amount. COE for Category A (≤1,600cc, OMV ≤ S$20k) has historically ranged from S$60k–S$110k+. |
| OMV (Open Market Value) | The price paid for the vehicle in its country of origin, declared to Singapore Customs — before any Singapore taxes, duties, or COE. | Singapore Customs | OMV determines the MAS LTV cap (≤S$20k = 70% LTV; >S$20k = 60% LTV) and the Additional Registration Fee (ARF). |
| ARF (Additional Registration Fee) | A tax calculated as a tiered percentage of the OMV, payable to LTA upon vehicle registration. | LTA | Adds significantly to the total cost of the vehicle. Forms part of the PARF rebate when the car is scrapped within 10 years. |
| PARF Rebate | Preferential Additional Registration Fee rebate — a partial refund of the ARF paid if you deregister the car before the COE expires. | LTA | Affects the residual value of your car — a vehicle with remaining PARF value is worth more. Used car buyers should check remaining COE and PARF. |
Why car prices in Singapore are so high: A Toyota Corolla Altis with a factory price of ~S$18,000 OMV can cost S$120,000+ in Singapore — because the buyer also pays ARF (~S$25,000+), COE (~S$75,000–S$100,000+), GST, and dealer margins. The car loan is based on the full drive-away price including COE and ARF. This is why MAS LTV rules are important — borrowing 70% of S$120,000 means a S$84,000 loan, far higher than the car's underlying manufacturing cost. Source: LTA.
Source: LTA — Buying a Vehicle | MAS — LTV Rules
Rate Benchmarks & Repayment Formulas
Singapore market average flat rates and how instalments are calculated — March 2026
| Benchmark | Flat Rate | Approx EIR | Source |
|---|---|---|---|
| Avg. New Car (bank) | ~2.28% flat | ~4.25% EIR | MoneySense / DBS, OCBC, UOB |
| Avg. Used Car (bank) | ~2.78% flat | ~5.15% EIR | MoneySense / MAS rate data |
| MAS SORA (1-month) | ~3.0% | — | MAS SORA |
Standard Singapore flat rate instalment — used by all lenders. Instalment is constant throughout the tenure.
P = loan | r = flat rate (decimal) | n = years. Example: S$84k at 2.28% flat / 7yr = S$1,125/month
Reverse of the instalment formula — solves for the maximum principal given a monthly budget.
Budget = S$1,500/month, 2.28% flat, 7yr: Max Loan = S$1,500×84 ÷ 1.1596 = S$108,660
Key comparison tip: A 0.50% flat rate difference (e.g. 2.28% vs 2.78%) on an S$84,000 loan over 7 years is approximately S$2,940 in total interest. This is why getting a lower flat rate — or choosing a shorter tenure when you can afford the higher monthly — is worth comparing carefully. Always use the EIR when comparing across different lenders. Source: MoneySense.
MoneySense — Understanding Car Loans in Singapore | MAS — Car Loan LTV Rules | MAS SORA | LTA — Buying a Vehicle
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About this calculator
This calculator provides estimates for educational purposes. Interest rates and fees vary by lender and are subject to approval. Rates shown are indicative only and updated regularly but may not reflect current market conditions. Always verify rates directly with lenders before making decisions.