How to Calculate a Car Loan Payment in Singapore (2025 Guide)

Buying a car in Singapore? Between sky-high prices and strict loan rules, figuring out how much you’ll actually pay every month can feel overwhelming. From understanding your car downpayment in Singapore to choosing the right loan, this guide breaks it all down — with real examples and trusted tools.

Use a car loan calculator

The easiest way to estimate your repayments is with a car loan calculator Singapore platforms provide. Reliable options include:

• SGCarMart Car Loan Calculator

• Toyota Singapore’s Car Financing Tool

• Bank calculators from DBS, OCBC, and UOB

These tools let you adjust loan amount, interest rate, and tenure to view your monthly payment instantly.

Calculate manually

If you’d rather crunch the numbers yourself, here’s the formula:

Principal Loan × Interest Rate × Loan Tenure (in years) ÷ 100 = Total Interest

Example:

• Loan: S$100,000

• Interest: 2.8% p.a.

• Tenure: 5 years

Total interest = S$100,000 × 2.8 × 5 ÷ 100 = S$14,000
Total repayment = S$114,000
Monthly payment = S$114,000 ÷ 60 = S$1,900/month

This method helps you assess affordability before applying.

» READ MORE: Best car loan interest rates in Singapore (2025)

In Singapore, how much you can borrow depends on your car’s Open Market Value (OMV). Under Monetary Authority of Singapore (MAS) rules:

You can choose a loan tenure from 1 to 7 years. Longer loans mean smaller monthly instalments but more total interest paid.

In Singapore, you’ll need to make an upfront payment before financing the rest of the car. Depending on the car type and your financing terms, downpayments can range from 20% to 40% of the purchase price. New cars usually require a higher downpayment than used vehicles.

Here’s what the law says about car downpayment in Singapore:

• 30% minimum downpayment if the car’s OMV is S$20,000 or less

• 40% minimum downpayment if the OMV is above S$20,000

This applies to both new and used car downpayment in Singapore, and it must be paid in full, upfront, using cash or equivalent. No credit cards, additional loans, or instalment schemes allowed. This is a hard requirement for all standard car loans.

A zero‑downpayment car in Singapore may seem enticing—but beware, it effectively means you’re borrowing 100% of the vehicle’s value, which is typically disallowed under MAS standard car loan rules. These financing plans are offered by third-party financiers via dealers, not through traditional bank loans that adhere to MAS caps on LTV.

The risks include:

• Paying interest on the full vehicle price, which is considerably higher than typical 60–70% loans

• Significantly increased total interest costs over the loan tenure

• Greater risk of negative equity, especially if vehicle depreciation outpaces loan repayments

• Less flexibility if you decide to sell or refinance early—you may owe more than the car’s value

They’re not considered standard car loan financing in Singapore, and do not comply with MAS lending guidelines. Proceed with caution.

» READ MORE: How to afford a car in Singapore?

Yes. The Total Debt Servicing Ratio (TDSR) applies to all personal loans in Singapore, including car loans. Your total monthly debt repayments — including mortgage, credit cards, and car instalments — must not exceed 55% of your gross monthly income.

If your car loan pushes you past that threshold, your loan application will be rejected or your approved amount reduced.

Beyond MAS requirements, several real-world elements can influence how much you’ll actually need to fork out upfront.

Vehicle type and pricing

Higher-end or luxury cars often require a bigger downpayment. This is because lenders view them as higher-risk assets — they cost more and depreciate faster. Some dealers may even enforce stricter terms for those financing car loans in Singapore.

Loan tenure

Shorter loan tenures generally carry lower risk for lenders. As a result, opting for a shorter tenure may allow more flexibility in your downpayment — but your monthly instalments will be higher.

Financial standing

Your credit score, income, and existing debts can influence how strict lenders are with your financing package. A strong financial profile could help you secure a lower car loan Singapore interest rate, better repayment terms, or even slightly relaxed downpayment conditions.

Banks

Banks like DBS, OCBC, UOB, CIMB, and others offer regulated, structured loan packages with fixed car loan Singapore interest rate options (typically around 2.68% to 3.5% p.a.).

Car dealerships

Dealers often offer:

• Bank-arranged loans (they act as middlemen)

• In-house financing (more flexible, but sometimes with higher rates)

Always compare total cost of borrowing, loan structure, and repayment terms across both options before committing.

» READ MORE: The 3 key types of car insurance

Owning a car in Singapore is expensive — but with smart planning, it’s manageable. 

To recap:

• Use a reliable car loan calculator Singapore drivers trust

• Understand the legal and practical rules behind car downpayment Singapore

• Think twice before signing a zero downpayment car Singapore offer

• Improve your credit score and savings habits to qualify for better terms