Personal Loan Calculator Singapore
Turn an advertised flat rate into the effective interest rate (EIR), and see the monthly instalment, total interest and the real cost of the processing fee.
The principal approved by the lender, before any processing fee is deducted.
Bank personal loans are usually advertised at a flat rate. Licensed moneylenders quote a monthly rate on the outstanding balance.
Enter the number exactly as quoted, e.g. 3.5 for “3.5% p.a. flat” or 4 for “4% per month”.
Banks usually offer 12–60 months (some up to 84). Moneylender loans are often 1–12 months.
Usually deducted from the cash you receive. Enter 0 if there is no fee.
Your personal loan
Flat rates look cheap because interest is charged on the full loan for the whole tenure, even as you repay. The EIR shows the true yearly cost on the balance you still owe, including the processing fee. Estimates only; your letter of offer is final. Not financial advice.
Year-by-year breakdown
| Year | Interest paid | Principal repaid | Balance at year end |
|---|---|---|---|
| 1 | $1,133.68 | $6,233.00 | $13,767.00 |
| 2 | $709.63 | $6,657.05 | $7,109.95 |
| 3 | $256.73 | $7,109.95 | $0.00 |
Interest is allocated on the reducing balance at the EIR (actuarial method). Some lenders use the Rule of 78, which front-loads interest, so early-settlement figures can differ.
Licensed moneylender cap check
- Interest at most 4% a month Within cap
- Admin fee at most 10% of the loan Within cap
- Interest + fees no more than the loan amount Within cap
These caps apply to licensed moneylenders under the Moneylenders Rules (Ministry of Law). Banks are regulated separately. If a moneylender quote fails any check, do not sign — report it to the Registry of Moneylenders.
About this personal loan calculator
Singapore banks advertise personal loans with a flat rate such as “3.5% p.a.”. That number is not what you really pay. Under a flat rate, interest is worked out on the original loan amount for every year of the tenure, then added on and split into equal monthly instalments. But you repay part of the principal every month, so by the final year you might owe only a third of the original amount while still being charged interest on all of it.
The effective interest rate (EIR) fixes this. It is the reducing-balance rate that makes your instalments equal to the cash you actually received. Banks in Singapore quote the EIR alongside the flat rate for this reason, and it is the only fair way to compare a flat-rate personal loan with a credit-line, a balance transfer, a renovation loan or a moneylender quote. As a rule of thumb, the EIR is a little under double the flat rate for 3–5 year loans.
A processing fee (often 1%–2%) makes things worse, because it is usually deducted from the money paid out to you while your instalments stay the same. This calculator includes the fee in the headline EIR and also shows the EIR without the fee, so you can see how much the fee alone costs.
You can also enter a monthly rate, which is how licensed moneylenders quote. The tool then checks the three main Ministry of Law caps: interest of at most 4% a month, an admin fee of at most 10% of the principal, and total interest and fees no more than the amount borrowed.
Everything runs in your browser. Nothing you type is sent or stored.
How to use it
- Enter the loan amount the bank approved.
- Pick how the rate is quoted: flat p.a. for most bank adverts, reducing/EIR p.a. if you already have an EIR, or per month for moneylenders.
- Enter the rate exactly as quoted, the tenure in months, and the processing fee percentage.
- Read the monthly instalment, total interest and EIR. The EIR including the fee is the number to compare between lenders.
- Check the yearly breakdown to see how much of each year’s payments is interest, and the moneylender cap check if relevant.
Key terms and concepts
Flat rate: interest = loan × rate × years, charged on the full amount throughout. Simple to advertise, but understates the true cost.
Reducing balance: each month’s interest is charged only on what you still owe, like a home loan.
EIR (effective interest rate): the reducing-balance annual rate that equates all instalments to the cash you received, so it includes up-front fees. Shown here as the monthly rate × 12, the way Singapore banks quote it.
Processing fee: a one-off charge, usually deducted from the payout. It raises the EIR even though the instalment does not change.
Rule of 78: an interest-allocation method some lenders use for early settlement. It puts more interest in the early months than the reducing-balance method used in the table.
Common use cases
- Comparing two bank promotions, e.g. 2.88% flat with a 1% fee versus 3.2% flat with no fee.
- Checking the real monthly cost before borrowing for a wedding, renovation, course fees or a car repair.
- Answering “how much interest per month am I really paying?” on a quoted instalment plan.
- Comparing a personal loan with a credit-card balance transfer or a credit line by EIR.
- Checking whether a moneylender’s quote stays within the legal caps before signing.
Examples
Example 1 — $20,000 at 3.5% flat for 36 months, 1% fee. Flat interest is $20,000 × 3.5% × 3 = $2,100, so the instalment is $22,100 ÷ 36 = $613.89. You receive $19,800 after the $200 fee. The EIR is about 7.28% p.a. including the fee, or about 6.60% without it — roughly double the advertised rate.
Example 2 — $10,000 at 6% p.a. reducing balance for 24 months, no fee. The instalment is about $443.21, total interest about $637, and the EIR equals the quoted 6% because there is no fee and the rate is already on a reducing balance.
Example 3 — $5,000 from a moneylender at 4% a month for 6 months, 10% admin fee. The instalment is about $953.81 and total interest about $723. All three caps are met, but you receive only $4,500, so the EIR including the fee is about 88% p.a.
Example 4 — a longer tenure. Stretching Example 1 to 60 months lowers the instalment but raises total interest to $3,500, because flat interest grows in a straight line with the number of years.
Important notes
Bank limits. Under MAS rules on unsecured credit, you generally need an annual income of at least $20,000 to borrow, and total unsecured borrowing across all banks is capped at 12 times monthly income for most borrowers. Banks also run their own credit checks.
Moneylender caps come from the Moneylenders Rules (from 1 October 2015): interest at most 4% a month, late interest at most 4% a month on the overdue amount, a late fee of at most $60 a month, an admin fee of at most 10% of the principal, and total charges no more than the principal. Late charges are not modelled here.
Rounding. Lenders may round the instalment differently or make the last instalment slightly different.
Not financial advice. Your letter of offer is final. Compare the EIR, fees, early-settlement charges and late-payment charges.
Frequently asked questions
What is the difference between flat rate and EIR?
A flat rate charges interest on the full loan for the whole tenure. The EIR charges interest only on what you still owe and includes fees. For the same loan, the EIR is usually close to double the flat rate.
How do I calculate my monthly instalment on a flat-rate loan?
Multiply the loan by the flat rate and the number of years to get total interest, add the loan amount, then divide by the number of months. For $20,000 at 3.5% flat over 3 years: ($20,000 + $2,100) ÷ 36 = $613.89.
Why is the EIR higher than the advertised rate?
Because you are charged interest on money you have already repaid, and because any processing fee is deducted from the cash you receive. The EIR captures both.
How much interest am I paying per month?
The calculator shows an effective rate per month (EIR ÷ 12) including the fee. On a flat-rate bank loan this is usually well below 1% a month; moneylenders may charge up to 4% a month.
What is the maximum interest a licensed moneylender can charge?
Up to 4% a month on the outstanding loan, with an admin fee of at most 10% of the principal, a late fee of at most $60 a month, and total charges capped at the amount borrowed.
How much can I borrow on a personal loan in Singapore?
Banks generally require an annual income of at least $20,000 and cap total unsecured borrowing across all banks at 12 times monthly income for most borrowers. Each bank sets its own limit within that.
Does a longer tenure save money?
No. A longer tenure lowers the monthly instalment but increases total interest, because flat-rate interest is charged for every extra year.
Is this calculator official advice?
No. It is an estimate based on the standard formulas. Lenders may round or allocate interest differently, so always check the letter of offer.