Compounded SORA is the daily Singapore Overnight Rate Average compounded over a set period of one, three or six months, published by MAS together with daily SORA and used as the reference rate for SGD floating-rate loans.
Key takeaways
- MAS publishes 1-month, 3-month and 6-month Compounded SORA alongside daily SORA and the SORA Index, by 9am the next business day.
- Compounding reflects the time value of money more accurately than simple averaging of the daily rates.
- Because it averages a run of daily readings, Compounded SORA moves less abruptly than a rate set on a single day, as SIBOR and SOR were.
- A floating-rate home loan is quoted as Compounded SORA over the chosen tenor plus a loan margin.
- The SORA Conversion Package, used to move legacy SOR housing loans across, references 3-month Compounded SORA.
See how this applies to your own figures.
Singapore SORA Rate →How Compounded SORA is built
Each business day MAS computes SORA from that day’s overnight interbank transactions. Compounded SORA takes the run of those daily readings across a one, three or six-month window and compounds them, so each day interest earns interest over the window. MAS also publishes the SORA Index, a cumulative series that allows a compounded rate to be derived between any two dates.
Why loans use a compounded average
Interest payments on the old SIBOR and SOR loans were determined by the prevailing rate on a single day, so they could change abruptly on a reset date. A compounded average over one, three or six months smooths those daily movements, which is why SORA loan packages are priced on the compounded figure rather than on the overnight rate itself.
Choosing a tenor
The tenor sets how much history the rate carries and how often it is refreshed. A 1-month figure responds faster to a change in interest rates; a 3-month or 6-month figure lags longer and moves more gradually. The tenor a package uses is stated in the loan contract and in the property loan fact sheet.
Key Compounded SORA figures
| Item | Figure |
|---|---|
| Tenors published | 1, 3 and 6 months |
| Published alongside | daily SORA and the SORA Index |
| Publication | by 9am the next business day |
| Averaging method | compounding of daily SORA |
| SORA Conversion Package peg | 3-month Compounded SORA |
Figures as at 2026. Source: MAS.
Worked example
A home loan priced at 3-month Compounded SORA plus a margin of 1% resets to the published 3-month figure on each reset date, plus that 1%. Because the 3-month figure compounds roughly 3 months of daily SORA readings, one unusual overnight rate shifts the loan rate far less than it would on a single-day peg.
Related terms
All Singapore glossary terms →Related calculator
See how the 1, 3 and 6-month Compounded SORA tenors feed into a floating home loan rate.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MAS and MoneySense and seek independent professional advice before making any financial decisions.