Car Loan Calculator Singapore

Work out the maximum car loan, minimum down payment, monthly instalment, total interest and effective interest rate (EIR) under MAS rules, and compare 1 to 7 year loans.

$

The on-the-road price from the dealer, including COE, ARF and registration.

$

Decides the loan limit: 70% if OMV is $20,000 or less, otherwise 60%.

$

Leave blank to borrow the maximum. Anything below the minimum is raised to it.

1 to 7 years. 7 years is the MAS maximum.

The rate banks quote for car loans. The effective rate (EIR) is shown in the results.

Your car loan

Monthly instalment
$1,279.93
Total interest
$17,514.12
Effective interest rate (EIR)
5.19%

Bank and finance-company car loans follow MAS limits: 70% of the price if OMV is $20,000 or less, 60% above that, for up to 7 years. Dealer in-house financing is not covered. Estimates only, not financial advice.

Loan and down payment

Maximum loan-to-value6%
Maximum loan$90,000.00
Minimum down payment$60,000.00
Down payment used$60,000.00
Loan amount$90,000.00

Total cost

Total loan repayments$107,514.12
Total interest$17,514.12
Down payment plus repayments$167,514.12

Compare loan tenures

YearsMonthlyTotal interestEIR
1$7,708.50$2,502.005.09%
2$3,958.50$5,004.005.25%
3$2,708.50$7,506.005.27%
4$2,083.50$10,008.005.27%
5$1,708.50$12,510.005.24%
6$1,458.50$15,012.005.22%
7$1,279.93$17,514.125.19%

Repayment by year

YearInterestPrincipalBalance
1$4,409.52$10,949.64$79,050.36
2$3,827.98$11,531.18$67,519.18
3$3,215.56$12,143.60$55,375.58
4$2,570.62$12,788.54$42,587.04
5$1,891.42$13,467.74$29,119.29
6$1,176.14$14,183.02$14,936.28
7$422.88$14,936.28$0.00
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In-depth guide

Car loans in Singapore: MAS limits, flat rate vs effective rate, and how to choose a tenure

The MAS limits on how much you can borrow for a car and for how long, how a flat-rate instalment is worked out, and why the effective interest rate (EIR) is roughly double the flat rate.

Last verified: Sources: MAS Markdown version (for AI)

Key figures at a glance

Maximum loan, OMV up to $20,000
70% of the purchase price
So the minimum down payment is 30%.
Source: MAS
Maximum loan, OMV above $20,000
60% of the purchase price
So the minimum down payment is 40%.
Source: MAS
OMV threshold for the loan limit
$20,000
Maximum loan tenure
7 years
Dealer in-house financing is outside the MAS rules.
Source: MAS

Taking a car loan: step by step

Do these before you sign a loan or sales agreement.

  1. Step 1: Get the price and OMV

    Before visiting lenders

    The dealer’s price list shows the price including COE and the OMV.

  2. Step 2: Apply the MAS limit

    Before choosing a down payment

    Loan is capped at 70% or 60% of the price depending on OMV; the rest is your down payment.

  3. Step 3: Compare lenders by EIR

    When you have quotes

    Flat rates look low. Convert each quote to an effective rate to compare.

  4. Step 4: Pick a tenure

    Before signing

    A shorter tenure raises the instalment but cuts total interest. 7 years is the maximum.

  5. Step 5: Check the total monthly cost

    Before signing

    Add road tax, fuel, parking and insurance to the instalment.

How much you can borrow

MAS limits what a bank or finance company can lend for a car (agreements dated on or after 27 May 2016). The purchase price includes taxes and the COE.

Car's OMV Maximum loan Minimum down payment
Up to $20,000 70% of the purchase price 30%
Above $20,000 60% of the purchase price 40%

The maximum tenure is 7 years. These are ceilings: the amount a lender approves also depends on your credit and total debt servicing. Dealer in-house financing is outside MAS rules.

How the instalment is calculated

Car loans are quoted at a flat rate: interest is charged on the original loan for every year.

Instalment = (loan + loan × flat rate × years) ÷ months

Case Instalment Total interest EIR
$150,000 car, OMV $25,000: $90,000 loan, 2.78% flat, 7 years $1,279.93 $17,514.12 5.19%
$80,000 car, OMV $18,000: $56,000 loan, 2.5% flat, 5 years $1,050.00 $7,000.00 4.73%

Flat rate vs effective rate

You repay principal every month, but interest is still charged on the original loan. The effective interest rate (EIR) is the reducing-balance rate that matches your instalments to the loan; it is typically close to double the flat rate. Compare lenders by EIR, not by flat rate.

Choosing a tenure

For a $90,000 loan at 2.78% flat:

Tenure Monthly Total interest
3 years $2,708.50 $7,506.00
5 years $1,708.50 $12,510.00
7 years $1,279.93 $17,514.12

A shorter loan costs far less in interest but needs a higher monthly cash flow.

Tip: The instalment is only part of owning a car. Use the car affordability calculator to add running costs.

Common mistakes

  • Comparing flat rates with effective rates. A flat rate understates the cost of borrowing.
  • Using the wrong loan limit. Check which side of $20,000 the OMV falls on.
  • Assuming a tenure above 7 years. It is not available from banks and finance companies.
  • Forgetting fees. Processing and early-repayment fees are not in the calculator.
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Frequently asked questions

How much car loan can I get in Singapore?

70% of the purchase price if the car’s OMV is $20,000 or less, and 60% if it is above, for up to 7 years. These MAS limits apply to banks and finance companies.

What is the minimum down payment for a car?

30% of the price for cars with OMV up to $20,000, and 40% for cars above that.

How is a car loan instalment calculated?

Car loans use a flat rate: interest = loan × rate × years. Add that to the loan and divide by the number of months.

What is the effective interest rate (EIR) of a car loan?

The reducing-balance rate that equates your instalments to the loan. It is typically close to double the flat rate, for example about 5.19% for 2.78% flat over 7 years.

What is the maximum car loan tenure?

7 years for loans from banks and finance companies under MAS rules.

Is a shorter or longer car loan better?

A shorter loan has a higher instalment but much less total interest. A longer loan eases the monthly burden but costs more overall.

Do dealer loans follow the same limits?

No. MAS limits apply to banks and finance companies. Dealer in-house financing is not regulated by MAS.

Is this an official calculation?

No. It is an estimate using published rules and your inputs. Check your lender’s offer.

Sources

  1. MAS — Motor vehicle loans

This guide explains published rules in plain language. It is not financial, legal or official advice — rules change, so confirm with the agency linked above before you commit.

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