Loan & EMI Calculator

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By Checked against sources by , Founder & Architect, RECATOOLS Published Updated Last reviewed

Calculate monthly EMI repayments for any loan — home, car, or personal. See total interest, amortisation schedule, and principal vs interest split. Free, instant, no signup.

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Loan & EMI Calculator Tool

⚠ Disclaimer: Estimates only. This calculator does not constitute financial, tax or legal advice, and RECATOOLS is not a licensed financial adviser in any jurisdiction. Rates, rules and product terms vary by country and change over time — check the figures against the relevant authority or provider, and consult a licensed adviser before making decisions.

Enter the annual rate charged on the outstanding balance — the effective interest rate (EIR) in your offer.

Results are estimates for informational purposes only and do not constitute financial advice. Consult a licensed financial adviser before making borrowing decisions.
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How to Use the Loan & EMI Calculator

Choose your loan type

Select Home, Car, or Personal to load a starting amount, tenure and rate. The defaults are illustrative — the car tab opens on a flat rate, because that is how car loans are often quoted — so replace them with the figures on your own letter of offer.

Enter loan details

Type your loan amount (commas are fine), interest rate and tenure, and say how the rate is quoted: reducing balance (the effective rate, EIR) or flat. The tenure toggle switches between years and months, up to 35 years — the MAS cap for non-HDB property.

Click Calculate

Your monthly EMI, total payment and total interest appear instantly, to the cent, with a principal vs interest breakdown. For a flat rate the result also gives the effective rate it is equal to — the figure to compare against a reducing-balance quote.

Review the full schedule

Expand the amortisation table to see every monthly payment, how much goes to principal vs interest, and your remaining balance. In early months, the majority of each payment is interest — this is why making extra repayments in years 1–5 saves disproportionately more money.

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Loans in Singapore — How Borrowing Works and What It Really Costs

Taking out a loan is one of the most significant financial decisions most people make. Whether you are buying an HDB flat, financing a new car, or covering an unexpected expense with a personal loan, understanding how interest compounds over time — and what the total cost of borrowing actually is — can save you tens of thousands of dollars across the life of a loan. This page explains the arithmetic the calculator runs and the Singapore rules — MAS servicing ratios, HDB and bank loan terms — that shape what you can borrow.

How Loan Interest Is Calculated in Singapore

For a reducing-balance rate, this calculator charges interest each month only on the outstanding principal, not the original loan amount — the way HDB states its own loan is charged: monthly interest is the outstanding balance at the start of the month times the annual rate divided by 12. As you repay principal, the interest portion of the next instalment shrinks and the principal portion grows, while the instalment (the EMI) stays level. Each instalment and each month's interest is rounded to the cent, so the last instalment differs by a few cents or dollars and the balance ends at exactly zero; the totals shown are the sum of the schedule.

A flat rate is different. Interest is calculated on the original loan amount for every period, as if you had never repaid any principal, so a flat rate looks far cheaper than it is: 3% flat over 5 years costs the same as about 5.6% a year on a reducing balance. Car loans have often been quoted this way. In Malaysia that is changing: the Hire-Purchase (Amendment) Act 2026 moves hire-purchase financing to the effective rate and the reducing balance from 1 June 2026, with lenders given until 31 March 2027 to switch (Bank Negara Malaysia). If your quote is flat, choose Flat rate above and the calculator shows the effective rate it is equal to.

For a concrete example: a S$50,000 loan at 3% flat over 5 years (60 months) incurs total interest of S$7,500. The same loan at 3% reducing balance incurs only S$3,906 — a difference of S$3,594, or 92% more interest on the flat-rate product. A car loan at 2.5% flat over 7 years is about 4.7% a year effective. Bank Negara Malaysia's own example: RM100,000 over 9 years at 3% flat is RM1,175.93 a month and RM27,000 of interest, the same as an effective rate of 5.5%.

"A S$500,000 home loan at 4% over 25 years costs about S$291,800 in interest — more than half the original loan amount."

HDB vs Bank Loan: What Singapore Homebuyers Must Know

Singapore homebuyers purchasing an HDB flat face a choice that has no direct equivalent elsewhere in ASEAN: borrow from HDB itself at the concessionary rate, or borrow from a commercial bank at market rates.

The HDB concessionary loan charges 2.6% a year for 1 October to 31 December 2026. HDB pegs it 0.10% above the CPF Ordinary Account (OA) interest rate and may adjust it in January, April, July and October, in line with CPF's revisions; the OA rate for the same quarter is 2.5%, its legislated minimum (CPF Board). HDB lets you make a partial capital repayment or pay off the loan early, and CPF OA savings can be used for a housing loan. The repayment period is the shortest of 25 years, 65 minus the average age of the applicants, and the remaining lease minus 20 years, and the loan-to-value limit is up to 75% (HDB). Eligibility conditions are set out on HDB's housing-loan pages.

Bank loans are priced off market rates — most packages are either fixed for an initial period of two or three years or floating against the Singapore Overnight Rate Average (SORA) — so the rate can rise after the fixed period ends. A bank package may carry a lock-in period during which full or partial redemption incurs a penalty; whether it does, and how much, is in your letter of offer.

Two MAS limits govern every housing loan from a financial institution. The Total Debt Servicing Ratio (TDSR), introduced in 2013 and tightened from 60% to 55% in December 2021, caps all monthly debt repayments (mortgages, car loans, credit cards, personal loans) at 55% of gross monthly income. For HDB flats and executive condominiums still within their minimum occupation period, the Mortgage Servicing Ratio (MSR) further limits property-loan instalments alone to 30% of gross monthly income. MAS also caps loan tenure at 30 years for HDB flats and 35 years for other property, and lowers the LTV limit if the tenure exceeds 25 years (HDB) or 30 years (private) or runs past age 65. Run your TDSR and MSR before applying — the bank will, and knowing where you stand avoids a declined application.

Converting a Flat Rate to a Reducing-Balance Rate

There is no fixed multiple: the effective rate that matches a given flat rate depends on the tenure, because a flat rate keeps charging interest on principal you have already repaid. Solving the annuity formula for the rate that reproduces the flat-rate instalment gives, for a 5-year loan, 2.5% flat ≈ 4.7% effective, 3% flat ≈ 5.6% and 5% flat ≈ 9.2%; over 7 years, 2.5% flat ≈ 4.7% and 2.8% flat ≈ 5.2%. As a rough guide the effective rate is about 1.8 to 1.9 times the flat rate for tenures of three to seven years. The Flat rate setting above does this conversion for your own figures; ask the lender for the Effective Interest Rate (EIR) before signing as well.

TDSR at 55%, and the rate HDB pegs to CPF

01

Singapore's Total Debt Servicing Ratio (TDSR) limits all monthly debt repayments to 55% of gross monthly income — introduced by MAS in 2013 at 60% and tightened to 55% in December 2021.

02

The HDB concessionary loan rate of 2.6% p.a. (1 Oct to 31 Dec 2026) is pegged 0.10% above the CPF OA rate, which is at its legislated 2.5% minimum.

03

A 1-point difference in mortgage rate on a S$500,000 loan over 25 years is worth about S$85,000 of interest: S$291,800 at 4% versus S$376,900 at 5%.

04

This calculator uses the reducing balance method — interest each month is charged on the outstanding principal only, so the interest share of a level instalment falls over the tenure.

05

Car loans are often quoted flat — 2.5% flat over 7 years is about 4.7% a year on a reducing balance. Malaysia's hire-purchase loans move to EIR from 1 June 2026 (BNM).

06

Early repayment: a bank package's lock-in and any redemption penalty are in the letter of offer; HDB lets you make a partial capital repayment or pay off its loan early.

07

The Mortgage Servicing Ratio (MSR) of 30% applies only to loans for HDB flats and for executive condominiums still inside their minimum occupation period (MAS).

08

MAS caps housing-loan tenure at 30 years for HDB flats and 35 years for other property; HDB's own loan runs the shortest of 25 years, 65 minus the applicants' average age, and the remaining lease minus 20.

09

The LTV limit drops (75% to 55% for a first housing loan) when the tenure exceeds 25 years for an HDB flat or 30 years for private property, or runs past the borrower's 65th birthday (MAS).

10

Compare loans on the Effective Interest Rate (EIR): a 3% flat rate over 5 years is 5.6% EIR, and the gap widens with longer tenures.

📅 Research current as of 16 Oct 2026 · Sources: Housing and Development Board, Interest Rate for HDB Housing Loan (2.60% for 1 Oct to 31 Dec 2026; monthly interest = balance × R/12) and Housing Loan from HDB; Monetary Authority of Singapore, MSR and TDSR Rules and Loan Tenure and Loan-to-Value Limits; CPF Board, CPF interest rates (OA 2.5%, Oct to Dec 2026); Bank Negara Malaysia, Five Key Highlights of the Hire-Purchase (Amendment) Act 2026
Rates, regulations, and lender practices change frequently — verify current figures with your provider or licensed advisor before acting.

Frequently Asked Questions

  • EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month for the duration of your loan. It is calculated using the reducing balance formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. Each payment covers the interest accrued on the outstanding balance that month, with the remainder reducing the principal. Over time, the interest portion falls and the principal portion rises, but the monthly payment amount stays the same.
  • A flat rate charges interest on the original loan amount throughout the entire tenure — as if you never repaid any principal. A reducing balance rate charges interest only on the outstanding principal, so the interest charge falls each month as you repay. A 3% flat rate on a 5-year loan is equivalent to about 5.6% per annum on a reducing balance basis. Car loans have often been quoted flat; in Malaysia, hire-purchase financing moves to the effective rate and the reducing balance under the Hire-Purchase (Amendment) Act 2026 (in force 1 June 2026, lenders to switch by 31 March 2027). Always ask for the Effective Interest Rate (EIR) to compare products fairly; if you only have a flat rate, choose Flat rate above and the calculator shows the EIR it is equal to.
  • It depends on your risk tolerance and financial situation. The HDB concessionary loan (2.6% for Oct to Dec 2026, pegged 0.10% above the CPF OA rate) moves only when the CPF rate does, can be repaid early and can be serviced from CPF OA savings — suited to buyers who want certainty. Bank loans are priced off market rates, fixed for an initial period or floating against SORA, so they can be cheaper when rates are low and dearer when they rise. Run both through this calculator at the rates you are actually quoted. HDB loans also carry eligibility conditions — citizenship, income ceilings and a 75% loan-to-value limit — set out on HDB's housing-loan pages.
  • The Total Debt Servicing Ratio (TDSR), which MAS applies to property loans applied for from 29 June 2013, limits the total monthly debt obligations of a borrower — across all loans including mortgages, car loans, personal loans, and credit card minimums — to 55% of gross monthly income (60% until it was tightened for options granted from 16 December 2021). For example, if you earn S$8,000 per month, your maximum total monthly debt repayments across all loans cannot exceed S$4,400. For an HDB flat, or an executive condominium whose minimum occupation period has not ended, the Mortgage Servicing Ratio (MSR) also limits property-loan instalments to 30% of gross monthly income. Both limits are assessed by the lender at the time of application.
  • Usually, but check the terms first. HDB lets you make a partial capital repayment or pay off its loan early, from CPF OA savings or cash. A bank mortgage may carry a lock-in period, and redeeming or refinancing inside it incurs the penalty stated in your letter of offer; the offer also says what applies after it ends. For personal and car loans, check the loan agreement. In Malaysia, once a hire-purchase loan under the 2026 amendment is settled early, no further interest accrues (BNM). Early repayment saves interest because every later month's interest is charged on a smaller balance.
  • For HDB's own loan, the repayment period is the shortest of 25 years, 65 minus the average age of the applicants, and the remaining lease minus 20 years (HDB). For loans from banks and finance companies, MAS caps tenure at 30 years for HDB flats and 35 years for other property — but the loan-to-value limit falls (from 75% to 55% for a first housing loan) if the tenure exceeds 25 years for an HDB flat or 30 years for private property, or if it runs past age 65. Joint borrowers are assessed on an income-weighted average age. Shorter tenures mean higher monthly payments but far less total interest.
  • Add up the interest in every month of the schedule — which is what this calculator does. A S$500,000 loan at 4% over 25 years has an EMI of S$2,639.18; the 300th and last payment is S$2,641.44, because each figure is rounded to the cent and the last one settles the difference. You pay S$791,756.26 in all, so total interest is S$291,756.26. EMI × months − principal gives nearly the same answer (S$291,754) but misses that last adjustment. Expand the schedule to see the interest charged in each month.
  • No. It computes principal and interest only, using the rate and tenure you enter. Processing fees, valuation and legal fees, fire and mortgage insurance, and any lock-in redemption penalty are outside the calculation — which is why the Effective Interest Rate a lender discloses can be higher than the headline rate you type in. For a like-for-like comparison between two offers, enter each lender's EIR rather than its advertised rate.
  • The amortisation schedule breaks down each monthly payment into its interest and principal components. For month 1: Interest = Outstanding balance × monthly rate; Principal repaid = EMI − Interest; New balance = Old balance − Principal repaid. This repeats for every month. In early months, the interest portion is large (because the outstanding balance is large). As you repay principal, the interest portion shrinks and more of each payment goes to reducing the balance. The amortisation schedule makes this visible — you can see exactly how much of your month-12 payment reduces principal vs paying interest.
  • Because interest is charged on the outstanding balance every month, and a longer tenure keeps that balance high for longer. On S$500,000 at 4%, a 25-year loan costs about S$291,800 in interest; stretching to 30 years lowers the instalment from S$2,639 to about S$2,387 but raises total interest to roughly S$359,000. Use the tenure toggle to see the trade-off, and the amortisation table to see where the interest is concentrated.

Method & sources

How it computes

Reducing balance: EMI = P·r(1+r)^n ÷ ((1+r)^n − 1), r = annual rate ÷ 12 (HDB's balance × R/12), rounded to the cent; a month-by-month schedule in integer cents, the last payment absorbing the rounding; totals summed from it. Flat rate: interest = P × rate × years, instalment = (P + interest) ÷ months, and the effective rate is the reducing rate with the same instalment, checked against BNM's example (RM100,000, 108 months, 3% flat → RM1,175.93) (MortgageKernel.loan).

What this tool implements

  • Principal and interest only — fees, insurance and redemption penalties are excluded and the page says so
  • The rate is the nominal annual rate charged on the outstanding balance, one-twelfth of it a month, as HDB states for its own loan: "Monthly interest payable = Outstanding loan balance as at the 1st of the month x R/12". Instalment and interest are rounded half-up to the cent, the last instalment settles the balance to exactly 0, and the totals are the sum of the schedule.
  • Flat-rate quotes: total interest = principal × flat rate × years on the original principal; instalment = (principal + interest) ÷ months, the last one settling the cents. The effective rate (EIR) is solved as the reducing-balance rate with the same instalment. Pinned to Bank Negara Malaysia's example: RM100,000 over 108 months at 3% flat is RM1,175.93 a month and RM27,000 of interest, "equivalent" to an EIR of 5.5%.
  • Singapore context, re-read 2026-10-16: HDB concessionary rate 2.60% for 1 Oct–31 Dec 2026, pegged 0.10% above the CPF OA rate and adjustable in January, April, July and October (HDB); OA 2.5% for the same quarter, its legislated minimum (CPF Board); HDB loan LTV up to 75% and repayment period the shortest of 25 years, 65 minus the applicants' average age, and the remaining lease minus 20 (HDB); MSR 30% for HDB flats and ECs within MOP, TDSR 55% (MAS), 60% until options granted from 16 Dec 2021 (MAS media release), applying to loans from 29 Jun 2013; tenure caps 30/35 years and the lower LTV past 25/30 years or age 65 (MAS).
  • Malaysia: hire-purchase financing moves to the effective rate and the reducing balance under the Hire-Purchase (Amendment) Act 2026, effective 1 June 2026 with a grace period to 31 March 2027 (BNM consumer guide).
  • Corrected 2026-10-16: total payment as EMI × months in floating point (now summed from a cent-exact schedule); a blank or grouped amount read as 0; tenure capped at 30 years (MAS allows 35 for non-HDB property); no way to enter a flat rate; FAQ total interest S$291,700 (S$291,756.26); "OA rate at its floor since July 1999", "HDB LTV 75% since 20 Aug 2024" and "HDB loans have no prepayment penalty" (not on any page we could fetch — restated as what HDB says); HDB tenure "25 years, not past 65" (the shortest-of rule); car loans "quoted flat in Singapore as well as Malaysia" (Malaysia is moving to EIR).

Sources

What can make this go out of date

  • MAS TDSR/MSR thresholds, tenure caps and LTV limits; HDB LTV and tenure rules

Abridged — the full review record for this tool runs longer than the list above.

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