Car Loan Calculator

Estimate monthly car loan instalments, total interest payable, and total cost at Singapore flat interest rates.

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Car Loan Calculator

Calculate your monthly car loan instalment using flat interest rates. Singapore car loans typically run up to 7 years with rates around 2.5% to 3.5%.

Loan Details

S$
1 yr 5 yrs 10 yrs

Monthly Instalment

S$1,422

for 7 years at 2.78% p.a.

Loan Summary

Loan Principal S$100,000
Total Interest S$19,448
Total Payable S$119,448

Principal vs Interest

Principal 84% Interest 16%

Car Financing in Singapore

Most car buyers in Singapore finance their purchase with a hire-purchase loan. The Monetary Authority of Singapore (MAS) regulates car lending with a maximum loan-to-value ratio of 70% and a maximum tenure of 7 years, meaning you need at least a 30% cash or CPF down payment.

Car loan interest rates in Singapore are typically quoted as flat rates ranging from 2.28% to 2.78%. The flat rate understates the true cost of borrowing — the effective annual rate is roughly 1.8 times higher. When comparing offers from different banks, always convert to the effective rate for a fair comparison.

Remember that the loan amount includes not just the car price but also the COE premium and ARF. A S$100,000 car can easily require a S$150,000+ loan after registration fees. Use the total cost calculator to see how loan interest fits into the complete ownership picture, or compare car loan packages from major Singapore banks.

Frequently Asked Questions

What is the maximum loan-to-value (LTV) ratio for car loans in Singapore?
MAS limits car loans to 70% of the purchase price (including COE) for loans up to 5 years, and 60% for loans between 5 and 7 years. This means you need at least a 30% down payment for a standard car loan.
What is the maximum car loan tenure in Singapore?
The maximum loan tenure is 7 years for new cars. For used cars, the maximum is typically 7 years minus the age of the vehicle at the time of purchase. Most buyers opt for 5-7 year loans.
What is the difference between flat and effective interest rates?
A flat rate of 2.5% means interest is calculated on the original loan amount for the entire tenure. The effective (or reducing balance) rate is roughly double the flat rate — around 4.5-5% — because it reflects the actual cost of borrowing as your principal decreases. Always compare the effective rate when shopping for loans.
Should I take a longer loan to reduce monthly payments?
A longer tenure reduces monthly instalments but increases total interest paid. For example, a S$100,000 loan at 2.5% flat costs about S$5,000 more in interest over 7 years compared to 5 years. Use the total cost calculator to see how loan duration affects your all-in ownership cost.

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